Czech Republic: Electronic Records of Sales

4. October 2016

On 1 December 2016, a new sales reporting system will be launched in the Czech Republic. The main purpose of the electronic records of sales is for businesses to report their cash sales directly to the tax authority via an online system. Technically, the tax payers’ cash registers will be connected to a server of Ministry of Finance (“MF”) and will exchange information about sales in real time. The MF server will provide a unique transaction code, which will have to be printed at each receipt from the cash register.

Starting dates of electronic records of sales

This obligation will apply to all business entities subject to income tax in the Czech Republic which receive payments for their goods or services via means other than a wire transfer (e.g. cash, a credit/debit card, a check, meal tickets etc.). The table below shows the starting dates per commercial sectors.

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System for all businesses with cash payments or prepayments

We would like to draw your attention to the fact that the system of electronic records of sales does not affect only entities using cash payments on a daily basis (e.g. restaurants, hotels or retailers). The system includes also any entity which receives cash payments or prepayments occasionally – for instance an occasional cash payment for rent, for goods, for parking etc.

It is therefore high time to find out whether the obligation to report sales in this new system applies to you and what administrative obligations it will entail for your business. Should you need any assistance, we would be pleased to provide you with our services in this area.

Should you have any questions regarding the issues above, please do not hesitate to contact Jana Jirmásková, e-mail: jana.jirmaskova@tpa-group.cz.