The Czech Republic has approved legislation to reintroduce real-time electronic sales reporting from 2027, alongside VAT changes for beverages, tax credits and deductions, hospitality tip exemptions, and other business tax relief measures.
The Czech Republic’s Ministry of Finance and the Chamber of Deputies have approved the Sales Registration Act on 9 September 2026 after overriding the Senate’s proposed amendments.
The legislation has been submitted to the president for signature on 11 September 2026.
The key aspect of this legislative proposal is the reintroduction of electronic sales records (Elektronická Evidence Tržeb – EET 2.0) in the Czech Republic, scheduled to take effect in 2027.
The bill aims to create a fairer business environment and improve tax compliance through real-time transaction reporting. It focuses on personal contact transactions rather than payment methods, removes mandatory physical receipts, and introduces tax relief measures, including credits for compliant businesses, hospitality tip exemptions, and restored student and childcare deductions.
What EET 2.0 covers
EET 2.0 applies only to contact payments made in person at physical business locations or vehicles. Online and distance transactions are excluded.
Paper receipts are no longer required, ending the customer receipt lottery program. All reporting occurs through a single real-time online XML stream; offline and paper alternatives have been eliminated.
The Financial Administration provides free software for small merchants with lower volumes. Enforcement has been softened. Authorities can no longer immediately close premises or suspend operations for non-compliance.
VAT changes for beverages and tips
Non-alcoholic beverages in catering now carry 12% VAT, aligning with food taxation. Alcoholic drinks over 0.5% ethanol remain at 21%. Employee tips in gastronomy establishments are exempt from income tax and social security contributions, capped at 7% of monthly catering revenue. This applies only to venues equipped for on-site consumption.
Tax credits and deductions for businesses
Self-employed individuals can claim a one-time income tax deduction of CZK 5,000 in their first EET 2.0 year. Taxpayers in the flat-rate regime with revenues up to CZK 1,000,000 may opt out by paying CZK 1,400 monthly. The student tax credit of CZK 4,020 and preschool placement credit have been restored.
VAT relief and employee benefits
Annual caps on non-cash employee leisure and wellness benefits have been removed. Vacation benefits carry a CZK 20,000 annual cap. VAT relief on unpaid invoices now allows claims after three months instead of six, with debt thresholds raised from CZK 10,000 to CZK 20,000 and an annual cap of CZK 100,000.
