Czech: Main Parameters of EET 2.0

EET 2.0 simplifies sales recording for entrepreneurs, offering compatibility with EET 1.0 and optional receipt printing. It requires minimal data and employs targeted analytics to reduce checks. Cash and non-cash payments are registered at the establishment. An EET OFF option exists for low-income entrepreneurs. Accompanying measures include tax breaks, VAT reduction on non-alcoholic beverages, and voluntary tips exemptions to combat the grey economy

EET 2.0 simplifies sales recording for entrepreneurs, reduces administrative and technical burden, and uses modern technologies:

• Compatibility with EET 1.0 (use and update existing equipment)
• Receipt issued only on customer request (no mandatory printing due to EET)
• Minimal recorded data: taxpayer ID, date, time, serial number, establishment, amount
• Fewer checks via targeted data analytics (including cashless payments)
• Tax and business benefits
• Free Financial Management app for mobile, tablet, and computer, designed for the smallest entrepreneurs
• Clear, uniform rules without blanket exceptions

EET 2.0 registers payments with personal customer contact or at the establishment:

• cash payments
• credit card payments
• QR payments and other common methods at the point of delivery

Invoices and online account-to-account transactions without physical contact are exempt.

Non-cash payment registration is essential for EET 2.0 to function effectively. The solution differs from original EET and complies fully with Constitutional Court ruling Pl. ÚS 26/16.

EET OFF regime for smallest entrepreneurs

The draft allows an EET OFF alternative for entrepreneurs who choose not to register sales, with strict conditions:

• Participation in 1st flat tax band
• Annual income up to 1 million CZK
• Monthly flat tax of CZK 1,500 + mandatory social and health insurance

The regime stays fixed for the tax period. Exceeding the income limit requires paying the difference by period-end; sales registration obligation begins only the next year.

Accompanying tax measures

The proposal corrects excessive tax burden increases, focusing on stable/lower taxes via effective collection rather than hikes.

• Return of tax breaks: refunds tuition fees and discount for working students
• Employee benefits: removes cap at half average wage; full income-tax exemption for leisure benefits and employer social service contributions
• VAT reduction: non-alcoholic beverages in catering services lowered to 12% (previous policy stifled gastronomy, boosted grey economy and undeclared work)
• Voluntary tips exemption: tips in gastronomy exempt from income tax and contributions up to 7% of monthly restaurant sales (applies to waiters, bartenders, cooks etc.). Aims to reduce grey economy (over 90% of CZ tips, ~CZK 17 bn/year untaxed), stabilize sector post-Covid (lost 25% staff), and improve employees’ creditworthiness/mortgage access. Follows Germany/Austria model.
• EET discount: CZK 5,000 tax rebate on introduction of EET 2.0, available both to new registrants and those from previous EET waves.