Chamber of Deputies Restores Electronic Sales Records and School Allowances, Rejects Senate Amendments

The Chamber of Deputies of the Czech Parliament has rejected changes proposed by the Senate and approved the return of the electronic records of sales system (EET), along with the kindergarten allowance ("školkovné") and the tax deduction for students. The law will now be sent to the president for signature.

The new version of EET is meant to be significantly simpler than the previous system: entrepreneurs will no longer be required to print receipts, but for the first time, cashless payments will also fall under the reporting requirement. An exception will be made for sole traders using the flat-rate tax scheme with annual income up to one million crowns.

What the Senate Wanted to Change

Senators had sought to exclude cashless transactions and direct sales of agricultural produce by farmers from the scope of the law, and also proposed scrapping the cap on tax exemptions for employer-provided medical benefits. However, deputies from the governing coalition did not support these amendments.

Why the Government Wants a New Records System

According to Finance Minister Alena Schillerová (ANO), the reform is designed not only to improve tax collection but also to level the playing field for competition among businesses. She estimates the measure will bring at least 14.4 billion crowns a year into the state budget.

"EET 2.0 is a modern, significantly simplified system for recording revenue that will help curb the shadow economy, ensure fairer tax collection, and create a level playing field for doing business," Schillerová said. The opposition, however, doubts these claimed benefits and argues the new system will merely add to entrepreneurs' administrative burden.

Other Changes in the Law

In addition to reinstating EET, the law also brings back the kindergarten allowance and the student tax deduction, and lowers VAT on non-alcoholic beverages in restaurants. It also proposes exempting voluntary tips for hospitality workers—up to 7% of monthly turnover—from income tax and social security contributions.

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Around Prague, based on reporting by novinky.cz