For more than two months entrepreneurs in wholesale and retail have had the obligation to record their cash sales in the electronic record of sales. Contrary to the first estimations by the financial administration, which expected extension of e-sales to 250 000 subjects, only around 150 000 of them have picked up their authorization data. When making this estimate, the financial administration used information about codes of economic activities stated in tax return forms. But they couldn’t have guessed which of these taxpayers accept cash payments, which means those that have an obligation to use e-sales. The estimated number of taxpayers considered in the 2^nd phase of e-sales included seasonal sellers (they can register as late as right before the commencement of sales) and sellers with only ancillary (minority) wholesale and retail as well.

Together with the extension of e-sales to a very broad area of other activity came other problems with the application of e-sales in specific situations. Financial administration has tried to provide explanation for problematic areas before the beginning of the 2^nd phase of e-sales but information regarding some specific activities (such as: activities of opticians, florists, tourist information centers) were published only gradually during March and April.

From the published explanations follows that activities of opticians (glasses sale, eyesight testing, adjustment of lenses) or florists (sale of flowers, sale of planting material, production of flower baskets) can fall within several codes of economic activity classification of CZ NACE. With every activity the commencement of e-sales needs to be assessed separately; an optician or a florist can alternatively postpone the use of e-sales with the so-called minority activities. According to e-sales methodology a minority activity is an activity which is not conducted in its own place of business and at the same time sales from this activity do not exceed 49 % of sales of the business or 175 000 CZK.

An e-sales conference, that took place in Prague April 21^st 2017, brought answers to questions about the use of e-sales in the non-profit sector. Those attending the conference learned besides other things that the financial administration is thinking about changing the limit for assessing entrepreneurial activity of NPOs as a minor activity, which would allow for a larger number of NPOs to avoid e-sales obligations.

During April, the financial administration conducted more inspections done in connection to e-sales. They concentrated mainly on market places close to the border and in Prague and Brno as well; they worked together with the customs administration which is authorized by law for inspections concerning e-sales obligations and their fulfillment. The focus was mainly on wholesale and retail where the inspection is easier and quicker than during an inspectional purchase in a restaurant. A breach of e-sales rules and obligations was observed in only approximately 10 % cases. Majority of them was either the fact that no receipt was issued, the information notice was missing or the sale was not recorded.

If you are interested in the topic of e-sales and would like to learn more, follow our website for more information. We will be posting other news in the future. We can of course help you with specific issues you might have in connection to e-sales in your own business as well.

Author: Michal Scholtz

Revision: Milan Kolář