Electronic records of sales

As of June 3, 2015 the government approved a new law introducing a system of electronic records of cash sales of goods and services („e-tržby“, e-sales or EET in the Czech language) which should come into effect in the middle of 2016. If the Parliament adopts the law it will be created a new way of immediate communication between businessman and the Financial Administration of the Czech Republic.

The aim of the electronic records of sales law is the Financial Administration and customers should be able to recognize easily a fraudulent actions made by entrepreneurs. In case of inconsistent bookkeeping, the necessary audit will be realized. The Financial Administration hopes the e-sales system brings an effective restriction of black economy in cash payments.

The e-sales system will function as following – everything will be connected through the internet so that at the moment of payment a related cash receipt will be recorded in the central data repository of the Financial Administration which immediately generates and sends back a unique code related to the receipt. Then the vendor prints and gives the receipt with the unique code to the customer. This process should be very quick without any delay. There will be also an off-line solution in case of unexpected failure in the internet connection. Subject of recording will be all cash payments, debit card payments, bank transfers and payments by meal vouchers and cheques.

The electronic records of sales system will involve all natural persons with tax residency in the Czech Republic as well as legal persons with business activity. The aim is to introduce e-sales gradually in several waves. In the first wave, it involves all businesses providing catering and accommodation services and hospitality. The second wave should include wholesale and retail businesses.