Electronical evidence of sales

On 1 December, a new Act No. 112/2016 Coll., concerning the evidence of sales, entered into force. This law introduces a new obligation for those entrepreneurs who accept payments in cash. They should electronically report these payments to the Ministry of Finance. The purpose of the law is to prevent fraud.

At the moment this obligation concerns only restaurants and accommodation providers. From 1 March 2017 it will also cover all commodities-sales, and from 1.3.2018 it will be valid for all business sectors (see § 37 of the Act).

A one-off tax reduction of CZK 5,000 was introduced as a cost-compensation for small-scale entrepreneurs in the context of the electronical evidence of sales.

In June a request to repeal the Act was submitted to the Constitutional Court. However, the Court has not yet taken any decision.