Czech taxation: what is changing and what is in progress

The ERS 2.0

In July 2026, the Chamber of Deputies approved, at its third reading, the government's bill on the electronic registration of sales and other related legislation, known as the ERS 2.0 (in Czech the EET 2.0).
The new registration system is intended to apply primarily to face-to-face payments, such as cash, card payments and QR payments. Contrarily, standard bank transfers and invoice payments will not be subject to the electronic registration. The system will not require the mandatory printing of receipts or the purchase of new cash register equipment. A free web application from the Financial Administration is to be made available to the smallest businesses.
However, following debate in the Senate, the bill is returning to the Chamber of Deputies. Senators have proposed several amendments, including the exclusion of cashless payments from the sales records.
The legislative process therefore continues with further debate in the Chamber of Deputies, which may approve the Senate's version, stick to its original wording, or reject the bill in its entirety. Should the returned bill be approved, it is expected to come into force on 1 January 2027.

The ERS 2.0 will accompany changes to income taxes

As well as the reintroduction of the ERS system, the amendment to the Act also contains several changes relating to income tax.
Of particular significance to employers is the amendment to the tax regime for health benefits. Selected preventive healthcare services paid for by the employer, such as certain screening tests, above-standard preventive check-ups or vaccinations, will no longer be subject to the employee's income tax. However, this regime will not apply, for example, to cosmetic procedures in the field of plastic surgery, beauty treatments or medical procedures.
The proposal also includes an increase in the threshold at which an individual is required to file a tax return, from CZK 50,000 to CZK 100,000. For employees with additional income, the current threshold of CZK 20,000 is set to rise to CZK 40,000.
The changes also affect voluntary tips in catering services and the tax regime for still wine provided as a promotional item.
However, the legislative process has not yet been finalised, and we therefore recommend waiting for the final version of the Act, which will come into force on 1 January 2027, before applying the individual changes in practice.

Tax interest rates have risen since July

The CNB's (the Czech National Bank) increase in the repo rate to 3.75 per cent will also be reflected in tax interest rates from 1 July 2026. Interest on late tax payments will therefore amount to 11.75 per cent per annum in the second half of 2026. If the tax authority grants a deferral of payment, half this rate will apply.
At the same time, the higher rate is also reflected in the compensation to which taxpayers may be entitled in the event of a late refund of an overpayment or an incorrectly assessed tax. In relevant cases, half the rate will apply to interest on excessive VAT deductions. The new rates therefore affect not only the costs associated with late tax payments, but also the amounts that a taxpayer may, conversely, claim from the tax authority.