Tax Changes in Connection with the Government's draft of the EET Act
Tax Changes in Connection with the Government's draft of the EET Act
The period for correcting VAT deductions should be shortened from 6 months to 3 months
The VAT deduction limit for passenger cars should be abolished
The proposal also amends the flat-rate tax scheme, employee benefits, and tax allowance
On 11 May 2026, the Government's Bill on the Registration of Sales and on the Amendment of Certain Other Acts, also referred to as EET 2.0, was submitted to the Chamber of Deputies as Parliamentary Document 189. Although the main topic is the renewal of electronic records of sales in a modernized form, the proposal also brings a number of related tax changes. These mainly concern VAT and personal income tax. As this is a draft law, it must be taken into account that the final form of the law may still change during the legislative process.
Changes in the area of VAT
The first significant change is to shorten the period after which the customer will be obliged to correct the previously applied VAT deduction for the unpaid liability. The current six-month deadline should be shortened to three months. In practice, this would mean a faster impact on customers who do not pay their obligations to suppliers.
Another significant change is the proposed abolition of the limit of CZK 420,000 for the right to deduct VAT for passenger cars. This should remove the current restriction that limits the maximum amount of VAT deduction for selected passenger vehicles from 2024.
The proposal also regulates the rules for the correction of the tax base for small bad debts. The limit for an individual claim should be increased from CZK 10,000 to CZK 20,000 and the aggregate limit against one debtor from CZK 20,000 to CZK 100,000. At the same time, the overdue period should be shortened from six to three months.
Another positive change is the proposed abolition of the rule according to which the correction of the tax base is carried out only in the last tax period. Taxpayers should thus gain more flexibility in applying the correction of the tax base for bad debts. According to the transitional provisions, the new, more lenient rules should also be applicable to receivables for which performance was provided in 2025 and 2026, if the tax base is corrected in 2027.
The proposal also envisages moving the serving of non-alcoholic beverages in catering services to a reduced VAT rate.
Changes in the area of personal income tax
In the area of income tax, the proposal introduces a special regime for taxpayers in the first lump-sum tax band with incomes up to CZK 1 million. These taxpayers could be exempted from the sales records through a special regime referred to as "EET OFF". Under it, the tax component of the lump-sum tax would amount to CZK 1,500 per month, i.e. CZK 1,400 more than the standard amount in the first band.
In the case of employee benefits, the current limits for most leisure benefits should be abolished. A separate value limit (CZK 20,000) should remain for recreation and tours.
At the same time, the range of tax-advantaged benefits should be expanded, for example, to include contributions to personal assistance, care services and similar services, if they are provided by entities with the appropriate authorization under the Act governing social services.
An important novelty is also the proposed exemption from voluntary tips for employees in catering services. The exemption should be limited to a maximum of 7% of the employer's monthly income from catering services.
The proposal also envisages the return of some tax reliefs. Specifically, the discount per student in the amount of CZK 4,020 is to be returned, as well as the discount for placing a child in a preschool facility, known as kindergarten fees, up to the maximum minimum wage (for comparison, in 2026 the minimum wage is CZK 22,400). A one-time discount on sales records in the amount of CZK 5,000 should also be introduced.