Small businesses may choose between a flat tax or EET 2.0, to be reintroduced by Finance Minister ANO by January 2027. The measure aims to ease administrative burdens and enhance fairness, reduce the grey economy, and increase budget revenues. Implementations include various self-employed individuals.
Czech: EET 2.0 Rules May Not Apply to Small Businesses, Choice Offered
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Czech Republic
Author: Ema Stamenković
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Content accuracy validation date:
19.02.2026
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08:18h
Small businesses will have the option to either pay the flat tax or comply with electronic sales records (EET 2.0). This was agreed upon by the coalition council, as stated by Chamber of Deputies Speaker (SPD) following the meeting.
Finance Minister (ANO) is preparing legislation to reintroduce EET 2.0, with the system expected to take effect from January 2027. Entrepreneurs will be able to choose between EET 2.0 and the flat tax regime. The aim is to avoid increasing administrative burdens for small business owners.
The turnover threshold for eligibility will be set so the choice applies not only to occasional business activities but also to self-employed individuals for whom business is their primary occupation.
The flat tax is currently available to self-employed persons who are not VAT payers and whose annual business income does not exceed CZK 2 million. It is structured in 3 income-based tiers. As of January, this year, around 125,000 people were registered under this regime.
The Ministry of Finance plans to complete the EET 2.0 draft bill by mid-February, followed by internal and external consultations. The government is expected to approve the proposal in the first half of the year, with the first reading in the Chamber of Deputies scheduled by summer at the latest.
The renewed sales recording obligation will cover traders, restaurateurs, and craftsmen. According to the minister, the measure will create fairer conditions for entrepreneurs, reduce the grey economy, and increase state budget revenues.
The International Monetary Fund mission also supported the restoration of EET 2.0 this year, stating that it would help curb tax evasion.
Electronic sales records 1.0 were originally introduced in 2016 under the ČSSD–ANO government. Due to the COVID-19 pandemic, they were suspended from spring 2020 until the end of 2022 and effectively became voluntary.
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