Who can apply for the discount for 2022 in the Czech Republic?

Due to the COVID pandemic, the mandatory registration of sales was suspended from March 27, 2020, to December 31, 2022, in the sense that it was no longer mandatory but it was possible to remain in the system voluntarily. The system was therefore in operation until December 31, 2022, and it was possible to use it, but completely voluntarily. As of January 1, 2023, EET was completely abolished by Act No. 458/2022 Coll., "Cancellation of EET. Disabling the EET system may lead to problems with internal sales records using cash registers that used the EET system.

If a natural person wants to apply tax rebates on sales records in their tax return for the year 2022 , they must certainly meet the conditions. The main condition is that the person who wants to use the discount for the year 2022 has to start electronic sales registration before March 27, 2020. The person who had the obligation and started the registration after this date, specifically in the period from March 27, 2020, to December 31, 2022, cannot claim the discount. Entrepreneurs who should have been affected by the third and fourth waves from the beginning of May 2020 are also not entitled to apply, there was a delay here. Therefore, only those taxpayers who had the obligation to register their sales electronically in the 2020 tax period and actually did so between January 1, 2020, and March 26, 2020, can reduce their income tax through the EET tax discount.

The tax discount on EET can be applied to the amount of the positive difference between 15% of the partial tax base and the basic discount per taxpayer. This is a one-time annual discount with a maximum limit of CZK 5,000. So, you cannot deduct more. The amount does not reduce your tax base, but rather your calculated income tax , which results in higher tax savings.

The discount can be deducted regardless of the actual costs incurred, and the taxpayer does not have to prove anything, the only condition is that he had the obligation to have EET from the beginning of 2020 and started it by March 26, 2020.

Example: A natural person with a tax base of CZK 200,000 was required to start an EET in 2020. This person did so on January 1, 2020. The 15% advance tax on the amount of CZK 200,000 amounts to CZK 30,000 to start an EET in 2020. This person did so on January 1, 2020. The advance tax of 15% on the amount of CZK 200,000 amounts to CZK 30,000. After applying the discount to the taxpayer, he can no longer apply the discount to EET because CZK 30,000 - CZK 30,840 = CZK 0 (cannot be applied to a minus).

Example 2: A natural person has a tax base of CZK 500,000 and wants to apply a discount to the taxpayer and EET (he had the obligation to register in 2020 and did so on January 1, 2020). The tax deposit amounts to CZK 95,000 out of CZK 500,000, and the government wants to apply a discount to the taxpayer and EET (he had the obligation to register in 2020 and did so on January 1, 2020). The tax deposit amounts to CZK 95,000 out of CZK 500,000. After applying the taxpayer discount, there is still plenty of room to use the EET discount, and the tax advance will be reduced to CZK 59,160 ( CZK 95,000 - CZK 30,840 - CZK 5,000). This natural person therefore has a tax liability of CZK 59,160.