The Czech government has approved a draft Sales Registration Act introducing a simplified electronic sales recording system for contactless payments, alongside targeted tax relief measures, including a reduced VAT rate on non-alcoholic beverages, expanded employee benefit deductions, and full tax exemption for tips in the hospitality sector, with implementation planned for 1 January 2027.
The Czech Republic government has approved a comprehensive overhaul of the country’s sales recording system alongside significant tax relief measures for businesses and citizens. First Deputy Prime Minister and Minister of Industry and Trade presented the government’s key decisions at a press conference on 4 May 2026.
The new Sales Registration Act, which has been sent to Parliament, introduces a streamlined approach to electronic sales records (EET) that reduces administrative burdens for entrepreneurs. The updated system will only apply to contactless payments and operate through a simplified online platform requiring less mandatory data.
Notably, businesses will no longer need to print receipts for customers. Small business owners will benefit from either a government-provided registration application or a complete exemption for those using flat-rate taxation on independent income.
To offset increased state revenues from the new registration system, the government has proposed several tax breaks. These include relief measures tied to sales registration implementation, removal of certain caps on non-cash employee benefits, and restoration of student tax discounts and kindergarten fee deductions.
The hospitality sector will see particular benefits, with VAT on non-alcoholic beverages in restaurants dropping to 12%. Additionally, employee tips will be fully exempt from all taxes and charges, including income tax and employee social insurance contributions, for workers in restaurants, cafés, and pubs.
The new electronic sales registration framework is scheduled to launch on 1 January 2027.
