From 1 January 2027, the Electronic Sales Recording (EET) 2.0 regime will require many businesses that accept in-person payments to report those sales to the Czech Republic tax authorities.
EET 2.0 is a sales-recording mechanism designed to capture revenue at the time of sale; notably, it is not an e-invoicing mandate. It requires covered transaction data to be transmitted to the tax authorities but does not require businesses to issue invoices electronically or replace their ordinary invoicing processes. In this respect, EET 2.0 is consistent with the broader EU trend toward continuous transaction controls, under which transaction data is reported to the tax authorities in real or near real time.
The Czech Republic previously operated an EET regime, which was abolished in 2023. EET 2.0 will restore fiscal reporting in a modernised format that will be sustainable for the future. For example, EET 2.0 responds to changes in payment methods; whereas cash previously was the dominant payment method, the use of other methods, such as card, mobile phone, QR code or payment apps is growing significantly. According to the Ministry of Finance, the reintroduction of EET is intended to reduce the shadow economy, improve tax collection and promote a more level playing field across sectors.
EET 2.0 will retain the core framework of the previous system while streamlining the reporting requirements. The regime will cover in-person payments regardless of the payment method used, but businesses will report a narrower set of transaction data. Unlike under the original EET regime, businesses will not be required to issue a special EET receipt or display the EET information notice.
This article explains which businesses and payments will fall within the scope of EET 2.0, how covered sales will be reported and what operational changes businesses should make before the regime takes effect.
EET 2.0 will generally apply to companies and entrepreneurs conducting business in the Czech Republic that receive payments subject to reporting under the new rules. However, specified entities, activities and categories of income will remain outside the regime.
The new rules include entity-level exemptions for certain entities, including the government, selected public institutions, banks, insurance companies and some other financial institutions. Separate exemptions will apply to designated payments, activities and transactions, including certain employment-related payments, specified transport and postal services, and gambling activities.
An exemption will also be available to small businesses with annual turnover below CZK 1 million qualify for the “EET OFF” exemption. An exemption will also apply to entrepreneurs that hold a Czech ZTP/P disability card.
Income that is not subject to income tax, as well as income from transactions that are occasional in relation to a taxpayer’s ordinary business activities, will fall outside the scope of EET 2.0. For example, an isolated sale of unused goods to employees generally will not need to be reported, whereas recurring sales through a company retail establishment generally will.
EET 2.0 will generally apply to payments received in person in connection with business activities carried out in the Czech Republic, regardless of the payment method used.
Covered payment methods include cash, payment cards, QR codes and bank transfers used in an in-person setting, as well crypto assets, vouchers, gift cards, prepaid cards, electronic wallets and similar means of payment. For example, a card or QR code payment made at a shop or restaurant will generally be subject to EET 2.0, but a remote payment, such as an online bank transfer used to settle an invoice, generally will not need to be recorded.
Cash payments may also have to be recorded even where there is no direct contact with the customer, such as certain delivery transactions where payment is collected upon delivery.
Businesses will be required to record each covered sale electronically no later than the date on which payment is received. They will transmit the transaction data to the Czech tax authorities through the EET 2.0 system.
Before recording their first sale, businesses will need to register each relevant business unit and obtain a certificate to authenticate the data transmitted to the tax authorities.
The data recorded for each transaction will include taxpayer, business unit and cash register identifiers, together with the transaction date and time and the total amount received.
If a transaction cannot be recorded immediately because of a connection or other technical issue, the data must be submitted without undue delay once the issue is resolved and, in all cases, within 48 hours.
With the rules applying from 1 January 2027, businesses should begin preparing for the new recording requirements by mapping the payment methods they accept and identifying transactions that are likely to fall within EET 2.0. They should then assess whether entity-, activity- or income-based exemptions apply; verify that their cash-register and payment systems can meet the recording requirements; and engage software providers where upgrades or configuration changes may be needed.
Petr Linx
Kristýna Pecníková
BDO in the Czech Republic
EET 2.0 is a sales-recording mechanism designed to capture revenue at the time of sale; notably, it is not an e-invoicing mandate. It requires covered transaction data to be transmitted to the tax authorities but does not require businesses to issue invoices electronically or replace their ordinary invoicing processes. In this respect, EET 2.0 is consistent with the broader EU trend toward continuous transaction controls, under which transaction data is reported to the tax authorities in real or near real time.
The Czech Republic previously operated an EET regime, which was abolished in 2023. EET 2.0 will restore fiscal reporting in a modernised format that will be sustainable for the future. For example, EET 2.0 responds to changes in payment methods; whereas cash previously was the dominant payment method, the use of other methods, such as card, mobile phone, QR code or payment apps is growing significantly. According to the Ministry of Finance, the reintroduction of EET is intended to reduce the shadow economy, improve tax collection and promote a more level playing field across sectors.
EET 2.0 will retain the core framework of the previous system while streamlining the reporting requirements. The regime will cover in-person payments regardless of the payment method used, but businesses will report a narrower set of transaction data. Unlike under the original EET regime, businesses will not be required to issue a special EET receipt or display the EET information notice.
This article explains which businesses and payments will fall within the scope of EET 2.0, how covered sales will be reported and what operational changes businesses should make before the regime takes effect.
Who Is Affected?
EET 2.0 will generally apply to companies and entrepreneurs conducting business in the Czech Republic that receive payments subject to reporting under the new rules. However, specified entities, activities and categories of income will remain outside the regime.The new rules include entity-level exemptions for certain entities, including the government, selected public institutions, banks, insurance companies and some other financial institutions. Separate exemptions will apply to designated payments, activities and transactions, including certain employment-related payments, specified transport and postal services, and gambling activities.
An exemption will also be available to small businesses with annual turnover below CZK 1 million qualify for the “EET OFF” exemption. An exemption will also apply to entrepreneurs that hold a Czech ZTP/P disability card.
Income that is not subject to income tax, as well as income from transactions that are occasional in relation to a taxpayer’s ordinary business activities, will fall outside the scope of EET 2.0. For example, an isolated sale of unused goods to employees generally will not need to be reported, whereas recurring sales through a company retail establishment generally will.
Which Payments Must Be Recorded?
EET 2.0 will generally apply to payments received in person in connection with business activities carried out in the Czech Republic, regardless of the payment method used.Covered payment methods include cash, payment cards, QR codes and bank transfers used in an in-person setting, as well crypto assets, vouchers, gift cards, prepaid cards, electronic wallets and similar means of payment. For example, a card or QR code payment made at a shop or restaurant will generally be subject to EET 2.0, but a remote payment, such as an online bank transfer used to settle an invoice, generally will not need to be recorded.
Cash payments may also have to be recorded even where there is no direct contact with the customer, such as certain delivery transactions where payment is collected upon delivery.
How Will EET Work in Practice?
Businesses will be required to record each covered sale electronically no later than the date on which payment is received. They will transmit the transaction data to the Czech tax authorities through the EET 2.0 system.Before recording their first sale, businesses will need to register each relevant business unit and obtain a certificate to authenticate the data transmitted to the tax authorities.
The data recorded for each transaction will include taxpayer, business unit and cash register identifiers, together with the transaction date and time and the total amount received.
If a transaction cannot be recorded immediately because of a connection or other technical issue, the data must be submitted without undue delay once the issue is resolved and, in all cases, within 48 hours.
How Should Businesses Prepare?
With the rules applying from 1 January 2027, businesses should begin preparing for the new recording requirements by mapping the payment methods they accept and identifying transactions that are likely to fall within EET 2.0. They should then assess whether entity-, activity- or income-based exemptions apply; verify that their cash-register and payment systems can meet the recording requirements; and engage software providers where upgrades or configuration changes may be needed.Petr Linx
Kristýna Pecníková
BDO in the Czech Republic