The electronic registration of sales will affect more entrepreneurs
The third and fourth phases of the electronic registration of sales (the ERS) is almost here and it will affect the entrepreneurs from 1 May 2020.
The ERS applies to receiving payments in cash. The first phase started on 1 December 2016 in restaurants and accommodation facilities. In March 2017, it became mandatory for wholesale and retail sale.
The effectiveness of the third and fourth phases was postponed by a decision of the Constitutional Court, which ordered the Ministry of Finance to re-examine the impact of the bill on entrepreneurs. Nevertheless, the amendment of the bill was signed by the president on 24 September 2019 and will come into effect on 1 May 2020. The entrepreneurs affected by the third and fourth phases will be required to register their sales. Those involved are mainly craftsmen, lawyers, accountants, doctors, or cab drivers.
The bill also mentions a special regime for minor entrepreneurs. According to the law, the special regime will apply to entrepreneurs with annual income below CZK 1 million, thus those who do not pay VAT, with only up to two employees and who do not receive more than CZK 600,000 in cash. From 1 February, such entrepreneurs can apply to be placed into a special ERS regime with respect to launching the third and fourth phases of the ERS.
The special regime can be used from May 2020, and the entrepreneurs who will be using it do not need to be connected to the Internet and can register their ERS sales with paper receipts distributed by the financial office. The entrepreneurs will inform the financial office about their sales quarterly, and they are required to place information regarding their special ERS regime in their business premises.
The Ministry of Finance and the Financial Administration are preparing a communication campaign regarding passing information to the entrepreneurs and the technical aspects of the ERS. Entrepreneurs can find detailed information on the official web pages of the Ministry of Finance and the Financial Administration (https://www.etrzby.cz).
