Expansion of electronic sales records approaching

On Friday 13 September, the Chamber of Deputies overrode the proposal of the Senate and approved the amendment to the Act on Electronic Sales Records. After more than one year in the Chamber of Deputies, the amendment is headed for the President’s signature. The expansion of electronic sales records to include the remaining taxpayers can be expected no sooner than 1 April 2020.

The amendment contains the following items:

  • The obligation to keep records will generally apply to all the remaining taxpayers from the third and fourth waves (sale of own products, provision of services).
  • It introduces relief from the obligation to record sales for taxpayers performing activities in the area of social services, visually impaired entrepreneurs and sellers of fresh-water fish (only in the period from 18 December to 24 December). For technical reasons, the sales of prepaid telephone cards, commercial air transport and sales from gambling have been excluded from the records completely.
  • Given the impossibility of review by supervisory bodies, taxpayers will no longer be required to record sales generated outside of the territory of the Czech Republic.
  • The amendment brings back the obligation to include the tax ID on receipts. In line with the ruling of the Constitutional Court, this obligation applies only to situations where the taxpayer’s tax ID does not include his or her personal ID number.
  • Taxpayers with annual sales of less than CZK 600,000 will be allowed a special regime of sales records. This consists in the possibility of picking up a block of paper receipts at the local Tax Office, giving paper receipts to customers and submitting a quarterly report to the tax authority on the sales recorded under the special regime.

All companies that do not currently record sales and whose activities are not part of the above exceptions should think about how the amendment will affect them. The first step is to carefully analyse all transactions and find out whether they accept cash/bills of exchange/payments using various vouchers (even just exceptionally).  If they do, it is necessary to get ready for the obligation to record sales. We will be happy to advise you on this matter and help you find a practical solution for meeting the requirements of the amendment to the Act on Electronic Sales Records in your company.

The article is part of dReport – September 2019, Tax news; Grants and investment Incentives.

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