The Czech government approved a wide-ranging tax and compliance bill on May 4, 2026, bundling the return of mandatory electronic sales recording with a series of VAT amendments, expanded bad debt relief, and restored tax reliefs for individuals. The package, known as EET 2.0, passed cabinet with cross-industry support and is now headed to the Chamber of Deputies ahead of a January 1, 2027 launch date.
The Return of EET
The original electronic sales recording system — introduced in 2016 and abolished in 2022 — is coming back in a significantly simplified form. Where the first version required businesses to record and transmit detailed transaction data including VAT amounts, EET 2.0 cuts the mandatory data fields to basic sales information only. No receipt printing is required. No customer data, itemised goods, or payment details are recorded.
The system covers only contact payments — cash, card, QR and similar methods made during physical customer interaction. Remote transactions are outside scope entirely.
The smallest businesses get an opt-out. Entrepreneurs in the first band of the flat-tax regime with annual revenues below CZK 1 million can elect the EET OFF mode, paying instead a flat monthly contribution of CZK 1,500 plus statutory social and health insurance. Non-profit organisations and voluntary associations are broadly exempt, with community events such as local festivities and association balls falling outside the regime.
"We are fulfilling the promise we made to entrepreneurs and citizens. EET 2.0 will be simpler, fairer and significantly less burdensome," said Finance Minister Alena Schillerová, who drove the bill through cabinet four months after taking office.
The Chamber of Commerce, which represents over 16,000 businesses, backed the proposal during the consultation process, as did the Confederation of Employers and Business Associations and the Confederation of Commerce and Tourism.
VAT on Soft Drinks
The bill reduces VAT on non-alcoholic beverages served as part of catering services from the standard 21% rate to the reduced 12% rate. The measure is targeted directly at the hospitality sector, which has faced sustained cost pressure in recent years. Voluntary tips paid to hospitality workers will be exempt from income tax and social contributions, with the government arguing this will increase workers' official declared income and improve their access to mortgages and credit.
Bad Debt Relief Expanded
The bill contains a significant but less publicised upgrade to the VAT bad debt correction regime for minor receivables, effective from January 1, 2027. The changes, confirmed in the EU compliance table attached to Government Resolution 274/2026, amend Section 46(1)(i) and Section 74b(3) of the VAT Act as follows.
Under the current rules in force since January 1, 2025, creditors can reduce their VAT tax base on unpaid minor receivables up to CZK 10,000, provided the debt is at least six months overdue and the creditor has sent at least two written payment demands. The annual cap per debtor is CZK 20,000.
From 2027, all three parameters improve materially:
The per-receivable limit doubles from CZK 10,000 to CZK 20,000
The overdue period is cut from six months to three months
The annual per-debtor cap rises fivefold from CZK 20,000 to CZK 100,000
The two written payment demand requirement is retained. The simplified regime cannot apply where another correction provision already covers the receivable. The annual restriction on when the correction can be claimed is also removed — from 2027, creditors can apply the correction in any tax period in which the conditions are met, rather than once per calendar year.
For debtors, the period after which an unclaimed input VAT deduction must be reversed is cut in half, from six months to three months from the payment due date.
Restored Individual Tax Reliefs
The bill reinstates two previously abolished personal income tax reliefs: the student tax credit and the childcare deduction. Employee benefit rules are also being updated, with out-of-pocket health screenings — including cardiovascular and oncological screenings beyond the scope of public health insurance — to be removed from the existing CZK 50,000 annual benefit cap. The precise list of qualifying screenings remains subject to further agreement between the Finance and Health ministries.
Legislative Status and Timeline
The bill was approved by government on May 4, 2026 under Resolution 274/2026, signed by First Deputy Prime Minister Karel Havlíček on behalf of cabinet, and submitted to parliament by Prime Minister Andrej Babiš. It is currently before the Chamber of Deputies and must pass the Senate before enactment.
Mid-June 2026 — Technical documentation published for POS developers
July 1, 2026 — Developer testing environment opens
November 1, 2026 — EET 2.0 functions available in the DIS+ tax portal
December 1, 2026 — MOJE EET application launches for smaller businesses
January 1, 2027 — System goes live; pilot phase runs through January
February 1, 2027 — Full live operation
The VAT bad debt changes and most other tax amendments in the bill are also intended to take effect January 1, 2027, subject to parliamentary approval. The bill remains in early legislative stages and further amendments during the parliamentary process cannot be ruled out.
