Documents and Laws in Parliament

Scope: Part One–Part Six; § 1–§ 36; pages 1–28.

The bill, returned by the Senate, introduces electronic record-keeping of business sales from 2027, including exemptions, online reporting, and fines of up to 500,000 CZK; the preparatory provisions are to take effect immediately upon promulgation. For income tax, it introduces a voluntary surcharge of 1,400 CZK for some flat-rate taxpayers, reinstates the student and preschool tuition tax credit, and adjusts employee benefits, tips, and the tax credit for sales records. For VAT, it improves the correction of uncollectible receivables, eliminates the deduction limitation for certain passenger cars, and moves non-alcoholic beverages in food service establishments to the reduced rate; at the same time, it expands the powers of the financial and customs administrations. Short-term residents from other European Union countries with severe visual or hearing impairments may take advantage of a personal exemption from sales recording requirements even without a Czech ZTP or ZTP/P card.

Scope: Sections 5–30; pages 1–4.

The Senate is returning the bill to the Chamber of Deputies with amendments that narrow the scope of sales reporting, primarily by excluding non-cash transfers. Entrepreneurs in the first bracket of the flat-rate tax regime with prior income of up to 1 million CZK, as well as direct sales of their own agricultural products to end consumers at the place of production, are to be exempt from the sales reporting requirement. The bill also amends the tax exemption for employee benefits, specifically excluding non-medically indicated cosmetic procedures, cosmetic services, and certain spa services not covered by insurance.

Scope: Part One–Part Twelve; § 5–§ 4; pages 1–30.

The bill is a comprehensive amendment to budgetary and related laws that aligns Czech regulations with the new EU fiscal framework and strengthens public finance management. It introduces a new national medium-term fiscal-structural plan, adjusts the expenditure frameworks of the state and state funds, strengthens the role of the National Budget Council and the Committee for Budget Forecasts, and expands the rules for disclosure and oversight. It also significantly amends budgetary rules for security situations, defense, strategic infrastructure, and low-carbon energy, and abolishes the special pension insurance reserve account, transferring the funds to the state budget. Furthermore, it mitigates certain impacts of debt rules on municipalities and municipal associations and newly subjects members of the National Budget Council to conflict-of-interest rules and related work restrictions.

Scope: pages 1–4.

The president is returning the bill on changes to public budgets to Parliament, citing concerns that it would undermine the long-term sustainability of public finances and parliamentary oversight of budgetary processes. He criticizes, in particular, a new exemption that excludes spending on transportation, water, and energy infrastructure from spending limits, as well as the government’s ability to exceed the state budget by up to 10% in the event of a deteriorating security situation. It also identifies as problematic the weakening of the Chamber of Deputies’ role in budgetary oversight, including the elimination of certain interim reports and the limitation of the Budget Committee’s influence. According to the opinion, the law as a whole loosens fiscal rules too much and strengthens the government at the expense of transparency and oversight.

Scope: pages 1–6.

This is a resolution by the Budget Committee, acting as the sponsoring committee, on the draft law on sales records, which primarily specifies the exact order of voting during the third reading on the rejection of the bill, on individual amendments, and on the bill as a whole. The committee also states its positions: it recommends, in particular, amendments A, F1, B4, and F2; it does not recommend most of the other amendments or the motion to reject the bill; and it abstains from taking a position on amendments M36 and N. The document itself does not alter the content of the bill, but procedurally determines which proposals conflict with one another and when some of them will become ineligible for a vote. At the same time, it authorizes the rapporteur to present the committee’s opinion during the third reading and the vice-chair of the committee to submit the resolution to the Speaker of the Chamber of Deputies.

Scope: Section 13; pages 1–4.

The amendment expands the exemptions from sales record-keeping in Section 13 so that they now also do not apply to the seasonal sale of Christmas trees and related services from December 1 through December 24 at establishments that sell only this product line. The aim is to take into account the short duration of sales, outdoor winter conditions, and practical difficulties in quickly serving customers. The proposal thus eases the obligations of business owners in this narrowly defined seasonal activity.

Scope: Part Two–Part Three; § 25–§ 72; pages 1–2.

The amendment extends the tax deductibility of advertising and promotional items costing up to 500 CZK to goods or services subject to excise tax, provided they are permanently and visibly marked with the company’s name. At the same time, however, it newly excludes these items from the right to deduct VAT in order to maintain budget neutrality and limit tax optimization. For standard items not subject to excise tax, the rules remain unchanged, and the limit stays at 500 Kč excluding VAT. The proposal aims to reduce red tape for businesses when giving small corporate gifts.

Scope: pages 1–70.

The amendment modifies Section 13 of Part One of the main bill by expanding the exemptions from the electronic sales record-keeping system to include a number of specific activities according to the NACE classification. Among other things, selected animal husbandry activities, the gathering of wild fruits, certain specialized manufacturing and repair services, health and social services, cultural institutions, sports clubs, and various associations and organizations are to be newly exempted from the EET. The goal is to limit the impact of the EET system in areas where the sponsors consider it illogical and disproportionate. The document repeatedly proposes the same type of amendment by adding a new subparagraph to Section 13(5).

Scope: Section 13; pages 1–4.

The amendment expands the exemptions from sales reporting to include small-scale sales of an agricultural entrepreneur’s own produce outside of business premises—for example, from the farm, at farmers’ markets, or through seasonal street vending, provided that the total does not exceed 50,000 CZK per tax period. The aim is to reduce the administrative burden on small farmers and to support rural sales of minor fiscal significance. The proposal justifies the change by aligning the rules with the existing exemption for seasonal sales of freshwater fish and by linking the limit to the CZK 50,000 threshold already used in tax regulations.

Scope: Sections 20–24; pages 1–5.

The proposed amendment to the Act on Sales Records relaxes the rules for the retroactive submission of sales data in the event of technical problems. It extends the deadline from 48 hours to 5 business days and newly stipulates that if the tax administrator’s system is unavailable or malfunctioning, the running of this deadline is suspended. At the same time, it exempts business owners from liability for an administrative offense if they failed to meet their obligation due to a failure on the part of the government. The goal is to ensure that business owners are not penalized for failures in the government system.

Scope: Sections 25–29; pages 1–2.

The amendment modifies Part Two of the main bill and reinstates the exemption for still wine used in advertising and promotional items valued at up to 500 Kč, excluding VAT, in the Income Tax Act. In practice, this means that still wine will once again be a tax-deductible expense, just as it was until the end of 2023, before this option was repealed. The proposal removes the existing disadvantage faced by still wine resulting from its formal classification as an excise-taxable item, even though it is subject to a zero rate. According to the explanatory memorandum, the change is intended to support the wine sector and related regional businesses.

Scope: pages 1–3.

The amendment modifies, in Part Two, the threshold for the obligation to file a tax return for individuals: the general annual limit on taxable income is increased from 50,000 CZK to 100,000 CZK, and the related additional limit is increased from 20,000 CZK to 40,000 CZK. The aim is to reduce the administrative burden, particularly for people with smaller sources of additional income, such as retirees or individuals on parental leave. The proposal emphasizes that this does not constitute a tax exemption for such income, but merely a reduction in the obligation to file a tax return in minor cases. According to the explanatory memorandum, the change has zero fiscal impact.

Scope: Sections 29–38l; pages 1–4.

The amendment modifies the tax provisions of the government’s bill by eliminating the tax credit for a spouse and replacing it with a higher tax credit for a child under 3 years of age. Under the new proposal, the benefit is to increase by 1,000 CZK per month, and by 4,000 CZK per month if at least one of the caregivers holds a ZTP/P card. The proposal aims to shift support from formal marital status directly to the care of a young child, and to provide greater assistance to single parents, unmarried parents, and low-income households. At the same time, it makes related adjustments to eligibility criteria and proof of entitlement; the changes are set to take effect on January 1, 2027.

Scope: Section 31; pages 1–2.

The amendment repeals points 13 through 16 of Section 31 in Part Three, thereby eliminating the change that was intended to reduce the VAT rate on the serving of non-alcoholic beverages as part of food service activities from 21% to 12%. The proposal does not concern the sales records themselves or other changes to VAT. Its main objective is to maintain higher public budget revenues and prevent an annual shortfall of approximately 0.7 billion CZK. It is therefore an adjustment to the government’s proposal aimed at achieving budgetary savings.

Scope: Sections 29–35be; pages 1–2.

The amendment modifies the tax provisions of the government’s bill and repeals the newly proposed sales recording tax credit of up to 5,000 CZK, as well as the related transitional provision. Conversely, it retains the reinstatement of the student tax credit and the tax credit for child placement. The sales recording system itself is not changed by this proposal. The aim is to strengthen the fiscal benefits of sales recording and not to return part of the expected tax revenue in the form of what the sponsors consider to be unjustified compensation.

Scope: Sections 29–30; pages 1–2.

The amendment to the Act on Sales Records does not abolish the sales record-keeping requirement itself, but removes from the accompanying amendment to the Income Tax Act the reintroduction of the child placement tax credit and the related reporting obligations for daycare centers. The proposal therefore deletes the relevant provisions and adjusts the related renumbering of sections and references. The goal is to reduce the administrative burden and save public budgets approximately 1.6 billion CZK per year. The explanatory memorandum also states that this tax credit benefits households with higher tax liabilities more and has a weak social impact.

Scope: Sections 29–35be; pages 1–2.

The amendment modifies only the tax provisions linked to the main bill and removes the reintroduction of the student tax credit; it therefore represents a change from the government’s proposal, not an amendment to the sales records system itself. At the same time, it removes and renumbers the related provisions of the Income Tax Act, retaining only technical references, including adjustments to the documentation for the child placement tax credit. The sponsors justify this by citing savings for public budgets and the fact that, in their view, the deduction primarily benefits students with higher incomes. The expected benefit is a reduction in the budgetary impact of approximately 340 mil. Kč per year.

Scope: Sections 29–30; pages 1–3.

The amendment modifies the Income Tax Act: it increases the corporate income tax rate from 21% to 22.5% and introduces new immediate depreciation for selected tangible assets acquired between 2027 and 2035. Companies will be able to depreciate machinery and equipment in depreciation groups 1 through 3 on a straight-line basis up to 100% of the initial cost in as little as 12 months; conventional internal-combustion road vehicles are excluded from this scheme. The proposal aims to support new investments and economic growth, with the higher tax rate intended to largely finance the budgetary impact of this support. At the same time, a transitional rule is being added stipulating that the existing legal provisions will apply to tax periods that have already begun.

Scope: pages 1–2.

The amendment strengthens the protection of data from sales records in the tax analytical records. It stipulates that identifiable data may be used and disclosed only to the extent necessary for tax administration or the audit of sales records, while the Ministry of Finance is to receive such data exclusively in anonymized or aggregated form. At the same time, it introduces mandatory logging of access to this data and an annual public summary report by the General Financial Directorate. The goal is to limit the risk of misuse of entrepreneurs’ sensitive business data and to enhance the transparency of audits.

Scope: Sections 24–25; pages 1–2.

An amendment to the Act on Sales Records introduces a new administrative offense for the unauthorized disclosure, provision, publication, or use of data from sales records pertaining to a specific business, business establishment, cash register, or individual sale. It proposes a fine of up to 5 million CZK, and up to 10 million CZK for public officials, employees of the tax administrator, the Ministry of Finance, or information system providers, provided that the act does not constitute a criminal offense. At the same time, it amends Section 25 so that this new administrative offense cannot be addressed by an on-the-spot order issued by a customs office, but only through regular administrative proceedings. The aim is to strengthen the protection of commercially sensitive data and deter its misuse.

Scope: § 22–§ 22a; pages 1–2.

The amendment adds a new § 22a to the Act on Sales Records, which significantly strengthens the protection of data from sales records. It stipulates that identifiable data on taxpayers and individual sales may be used only for tax purposes, may not be used for competitive comparisons or non-public economic analyses, and may not be disclosed to the ministry’s political leadership except in anonymized or aggregated form. At the same time, it introduces mandatory records of every access to this data for a period of 10 years and gives taxpayers the right to find out who accessed their data and for what purpose, provided that this does not jeopardize tax administration or criminal proceedings. The proposal aims to strengthen the protection of commercially sensitive data, boost business confidence, and promote fair competition.

Scope: Part Two; pages 1–3.

The amendment repeals selected provisions of the main proposal in Part Two that introduce a surcharge on the flat-rate tax under the EET OFF regime; the subsequent provisions are simply renumbered. The purpose is to ensure that small business owners in the flat-rate regime with revenues of up to 1 million CZK do not have to pay an additional 1,400 CZK per month to be exempt from the obligation to record sales. The proposal justifies the change by stating that this payment would disproportionately affect the smallest self-employed individuals and increase their mandatory monthly costs.

Scope: Section 13; pages 1–78.

The amendment repeatedly expands the exemptions from sales recording in Section 13(5) so that the listed activities, as defined by NACE codes, are no longer subject to the obligation to maintain electronic sales records. This applies to a very broad range of sectors, such as horse and camel breeding, the gathering of wild fruits, certain crafts and manufacturing, healthcare, social services, cultural institutions, sports clubs, and various professional, religious, political, and civic organizations. The proposers justify the change by arguing that the impact of sales recording on these sectors is illogical and disproportionate. The practical effect would be to narrow the range of entities that would be required to record sales starting in 2027.

Scope: Part Two–Part Three; § 5–§ 38t; pages 1–34.

The document contains a number of proposed amendments regarding the reinstatement of sales records and related tax changes. Most frequently, it proposes expanding exemptions from sales records, changing thresholds, and postponing or easing certain obligations—for example, for small business owners, secondary activities, cashless payments, or selected industries. At the same time, it significantly amends income tax provisions: it addresses employee health benefits, tips, child tax credits and bonuses, student tax credits, depreciation, and other exemptions; some provisions explicitly repeal the originally proposed changes and replace them with alternative solutions. Other proposals strengthen the protection of data from sales records and introduce severe penalties for their unauthorized use.

Scope: Sections 28–36; pages 1–3.

The amendment adds a new transitional provision to the Act on Sales Records, according to which the rules for obtaining a certificate, reporting recording units, and the recording identification number will apply no earlier than November 1, 2026. The aim is to firmly establish the effective date of these technical provisions, even though part of the Act is to take effect on the day following its promulgation and the exact date of promulgation cannot be determined in advance. At the same time, due to the insertion of a new section, the existing sections 29 through 35 are renumbered as sections 30 through 36. The proposal is intended to ensure that the Financial Administration has sufficient time to make the necessary tax information box functions available before these obligations take effect.