Czech Republic: Current Information on the Launch of EET 2.0

EET 2.0 extends EET 1.0 (no new equipment needed), covering all fields with active login. The MF app is free on various devices for on-site cashless payments. Taxpayer info is recorded, excluding purchase details. Self-employed individuals below one million CZK have options of EET 2.0 or "EET OFF." Fewer checks based on retrospective data are implemented, alongside favorable VAT changes. Tips up to 7% are tax-exempt, benefiting employees. EET 2.0 launches on 1.1.2027.

EET 2.0 is an extension of EET 1.0 (no new equipment is required), applicable to all fields, and active login

The MF app will be accessible for free on PC, tablet, and mobile devices, it applies to all "on-site" payments, including cash, physical cards, QR codes, cryptocurrency payments, and other cashless payments (invoices and online/e-shop payments via the Internet are exempt).

Taxpayer ID, date, time, sales serial number, location, and amount are all recorded.

Purchase items and customer personal information are not recorded.

Self-employed individuals in the first band of the flat-rate regime, or those earning up to one million CZK annually, are exempt and will be given the following options:

EET 2.0 or "EET OFF"—without EET 2.0 but with monthly payments of 100 + 1400 = 1500 CZK

EET 2.0 will only provide receipts upon request and without any obligation.

FS checks will only be based on retrospective data analysis, meaning there will be fewer checks and more targeted concurrent favorable changes in VAT, such as the reduction of VAT on non-alcoholic beverages from 21% to 12%, the exemption of voluntary tips from taxes and insurance premiums, and tax relief on EET-deductible items in the first year of implementation.

Benefits for employees: removal of restrictions, restoration of tax credits (students, preschool fees) to their previous level in 2023

Launch of the new information, support, and campaign web mojeeet.cz in collaboration with chambers, unions, and associations; regional events with the opportunity to respond to inquiries from business owners

According to the Ministry of Finance, tips are exempt from taxes up to 7% of restaurant sales (e.g., sales of one million, of which 70,000 are not taxed), employees' higher real incomes (their higher creditworthiness in mortgage applications, fewer applications for benefits), and the end of the gray area surrounding tips. It does not apply to restaurant owners who work for themselves; it only relates to voluntary tips given to staff.

Stalls, food trucks, window sales, etc. are exempt (there must be a service for this). The endeavor to rehire workers in the gastronomy sector, where one-fourth of the workforce departed following the Covid + termination of the gray zone, is the cause.

EET 2.0 launch: from 1. 1. 2027

The law, along with its required annexes (reasoned report, RIA), is going through the comment process this week, so it might yet change.