Proposed changes to the ERKCS Act

The third and fourth phases of ERKCS

The amendment contains a proposal that the third and fourth phases of ERKCS will start on the seventh month from publishing the amendment which means very likely from 1 July 2019. The newly determined date for the ERKCS obligation applies to all entities that have not yet been subject to this duty (e.g. providers of legal, tax, accounting and similar services, liberal professions, providers of health care or veterinarian care, providers of transportation, entities operating in vegetable and animal production, producers of groceries and craft activities.

New exceptions from the ERKCS

The proposal suggests that the recorded sales are only sales realised in the Czech Republic, i.e. sales realised abroad, either by Czech tax residents or tax non-residents, will not be subject to the record-keeping.

Selected entities will have the option to apply for an exemption from the ERKCS under the condition that they will be obliged to record the sales on paper using "official bills". This option will apply to natural persons - VAT non-payers who run a business with a maximum of two employees only and at the same time their income which is subject to the ERKCS has not exceeded CZK 200,000 in the last twelve calendar month. Legal entities providing health care covered by health insurance can apply under the same conditions.

Some specific sales should not be subject to the ERKCS, such as sales made by seriously visually impaired persons, payments for the provision of telecommunication and other services made via credited pre-paid cards, and sales from gambling.