Updated EET methodology
After eight and a half months, the Financial Administration has updated its Methodological Instruction on the Application of the Law on Registration of Sales. The original version of August 2016 was not discussed with the professional public and contained interpretative discrepancies. For a few months, only the additional information that explained the disputed provisions appeared on the official website of etrzby.cz. The Law on the Registration of Sales is written very briefly and consists of nine pages, while the Methodology in its current version is 45 pages. The main changes are:
- Charging and drawing credit (e.g. electronic wallet) is reported separately in a data message sent to the Financial Administration. Newly, if the charging and subsequent drawing of credit is done by different taxpayers, the charge/draw information does not need to be included in the data message.
- Specifying online payment methods provided by payment gateways describes what payments meet the formal characteristics of registered sales. If the payment gateway redirects the buyer to internet banking, the payment will no longer meet these criteria and need not be registered.
- Cash on delivery is not subject to the record of sales if the carrier (intermediary) hands over the collected sales to the taxpayer through a bank transfer and does not act in direct/ indirect representation.
- Tipping is subject to sales records only if it is passed on to the employer (not employees) and the material characteristics of registered sales are met, i.e. the income from business. According to the Methodology, VAT data need not be included in the data message for registered tips.
- The criteria for exempting minor secondary business activities of public benefit taxpayers have changed. In the current version, the limit for non-recording is CZK 300,000 or 5% of total revenue/income. The earnings that do not meet the formal requirements for registered sales or sales that are excluded from sales records are no longer included in the limit.
- You can electronically issue a receipt. Usually, this method will be applied when there is no physical contact of the parties to the transaction, e.g. e-shops, regular business partners. In common situations, such as a shop, this method must not be imposed on customers who are not interested.
- The information duty (placement of the prescribed text on sales records) also affects the taxpayer who offers the goods or services on the website, provided that the recorded sales can be made through these pages. In this case, the taxpayer meets the above obligation by placing the text in any place sufficiently visible to every visitor to the website.
- It clarifies the range of payments that are considered when assessing the criteria for minority activity (applies to payments that are not excluded from the sales register). The reporting of sales of minority activities in a given establishment may, under certain circumstances, be postponed to the reporting period for main revenue. A detailed description of the analysis for minor activities is provided in a separate supplement to the Methodology.
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