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In the Czech Republic, dark times are coming over the very popular sale of products through self-employed sales representatives. It is known as “consignment sales” or “brokering the sale of goods” from/to wholesale customers. What’s to blame? EET (electronic evidence of sales)!
Journalists and the professional public were discussing explanations of the Financial Administration related to e-shops, but no one has referred to the indirect representation stated in § 8 of the Act on the electronic evidence of sales. This section explains that a person who acts in his or her own name on behalf of others is obliged to register the sales, if, of course, the payment is being received in cash or a similar form.
To simplify, the retail side hands over the goods to the sales representatives and they then sell the goods to the customer under his or her own name on behalf of the retail side and receives payment in cash. In this case, the sales representative records revenues under his or her tax ID allocated for income tax purposes, and has been since the 1st of March, 2017. In the event that the sales representative shall then hand over the cash to the retail side also, the retail side also has to register it (yes, the same revenue will then be registered two times). In case the commission for the sales brokerage is being negotiated separately and is paid again in cash, the sales representative is again subject to be evidenced, but only in 2018.
Do your sales reps already have authentication data and, for example, a mobile cash register? Is your retail or wholesale store ready for EET that is obligatory as of March, 2017?