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The real operation of EET began on the 1st of December 2016 in the Czech Republic. In the first phase, transactions in cash, via credit card or by other similar ways will be evidenced in the area of the catering and accommodation services. The large group of entrepreneurs providing goods in the field of wholesale and retail trade will join next year in March. In the year 2018, other fields fall within the obligatory evidence of the transactions.
The Ministry of Finance projects that the increase in the national budget will be more than 18 billion CZK. However, specialists are more sceptical. Several restaurants and cafes have closed their businesses to date, other tax payers will reduce the taxable amount for the initial and recurring costs relating to compliance with this obligation.
It can happen that more subjects will become VAT payers because of exceeding the turnover of 1 million CZK. Or the subjects ‘profits’ will rise rapidly as well as with the payment of income tax. The National administration sure unofficially in this case will not control the foregoing period.
Another possibility is that controllers from finance and customs administration will bring the necessary amount into the budget. A non-standard tool is the possibility to anonymously lodge a complaint against an establishment that did not issue a receipt., The size of the pentalty could be up to 500 thousand CZK, and the establishment could be closed by repeatedly ignoring the law.
I have been training and preparing dutiful entrepreneurs for this obligation for 9 months. However, the law, which is interpreted only via methodical information, already contains several exemptions and ambiguities. The political situation is inclined to add further exemptions, for example e-shops, or for an entrepreneur with a turnover of up to 250 thousand CZK or for special finance activities. What and to what extent will the authorisation process go through is unclear because the elections tothe House of Representatives takes place in the year 2017…
It is probable that the reorganisation of business environment will be not successful. It is certain though that tens of thousands of subjects will have the obligation to evidence the received revenues from March 2017. I am happy to answer all of your questions and find the optimal solution for you and your establishment.