Act No. 112/2016 Coll., on Registration of Sales

With effect from: 1 December 2016

The most important intention behind the newly established electronic registration of sales (EET) is that there should be every single payment made in cash for the sale of goods or providing of services duly registered. Such registration shall be the basis of the communication between the traders and the Financial Administration of the Czech Republic. According to the Act there should be registered every payment which is not unique (i.e. in particular one-off or totally exceptional payment from the perspective of the respective income) and which is at the same time made in cash, via cheque, bill of exchange or another forms of transactions while these all constitute a business income of the income tax payer.

The mechanism of registration is to be introduced in a number of phases according to the respective business activity with start from 1 December 2016.

The final phase shall be introduced as of 1 June 2018 and since this date all the sales from all the business activities should be registered without any exception.

During payment for the goods or services at latest the traders shall have an obligation to send to the Financial Administration data related to the sale and issue the invoice for the consumer (invoice serial number, date and time of payment and the price are the examples of data which are to be registered). The data shall then be sent via internet.

The traders shall be entitled to use a one-off discount of up to CZK 5 000 for the expenditures related to the EET introduction. In case that the trader makes intentionally the registration of sales harder or even prevent it, the Act provides for the penalty of up to CZK 500 000 (open the official wording)