Czech Republic Proposes New Sales Recording Law (EET 2.0) Effective 2027

The Czech Republic's draft law on sales records reintroduces electronic sales reporting, aiming to monitor business transactions and lessen taxpayer burdens. It mandates real-time data submission to the Financial Administration, applying to both personal and corporate tax payers. A broad definition of reportable transactions includes cash, card payments, and virtual assets. Businesses must register points of sale and obtain a sales recording certificate. Exemptions exist for certain sectors, with penalties for non-compliance. Implementation is set for 1 January 2027.

The Czech Republic has introduced a draft law on sales records, marking the return of electronic sales reporting in a modernised form. The proposal, titled “Law on Sales Records and Amendments to Certain Other Laws”, aims to re-establish a structured system for monitoring business transactions while reducing administrative burdens on taxpayers.

Reintroduction of Electronic Sales Reporting

The draft law sets out a new framework for recording sales in real time, requiring taxpayers to submit transaction data electronically to the Financial Administration. The primary objective is to ensure automated data collection, enabling authorities to better verify tax compliance and strengthen a fair business environment.

The system will apply to both personal income tax and corporate income tax payers, covering sales carried out within the Czech Republic. Businesses will be required to transmit data such as transaction time, total amount, identification of the taxpayer, and details of the point of sale.

Broad Definition of Reportable Transactions

The proposal introduces a wide definition of “recorded sales”, covering:

• Cash payments
• Card and non-cash transfers
• Virtual assets
• Vouchers and similar instruments

In addition, the law applies to contact payments, meaning transactions carried out in physical interaction with the customer or at the business premises.

Main Compliance Obligations

• Under the new framework, businesses will be required to:
• Obtain a sales recording certificate issued by the tax authority
• Register all points of sale (registration units), including physical stores and online platforms
• Send transaction data in XML format to the tax administration in real time
• Ensure system response times and fallback reporting within 48 hours in case of connectivity issues

This confirms a clear technical model similar to clearance/reporting systems, where transaction data must be transmitted immediately upon sale.

Important Exemptions

The draft law provides several exemptions to reduce the burden on specific sectors and activities. Notably:

• Vending machines and certain self-service devices are excluded from the obligation
• Financial institutions (banks, insurers, investment entities) are exempt
• Selected public services, transport, and education-related activities are excluded
• Small taxpayers may opt for a flat-rate surcharge regime, removing the obligation to record sales

These exemptions indicate a more targeted approach compared to the original EET system.

Penalties and Enforcement

The Financial Administration and Customs authorities will oversee compliance, including the ability to perform control purchases.

Failure to comply with sales recording obligations may result in fines of up to: CZK 500,000 (€20,000)

This applies to both failures to record sales and intentional obstruction of the system.

Linked Tax Measures

The draft law is part of a broader legislative package that also amends:

• The Income Tax Act, introducing a new “sales records discount” (up to CZK 5,000)
• The VAT Act, including adjustments to thresholds and definitions
• Administrative laws governing tax and customs authorities

This confirms that the reform is not only technical but also includes financial incentives and tax adjustments to support implementation.

Timeline for Implementation

The new system is planned to enter into force on: 1 January 2027

However, certain preparatory provisions—such as registration and certification—will apply earlier to allow businesses to prepare for the transition.