EET, the Czech receipt-reporting scheme: why it came and why it went

For a few years a Czech receipt carried an odd extra: a string of letters and numbers, labelled FIK, proving that the sale had been reported to the tax office within seconds. Customers were urged to check it was there. Pubs, restaurants and shops grumbled, inspectors came round, and the scheme became one of the most contested pieces of Czech tax policy of its decade.

What EET was, how it worked, why it was introduced and what became of it is below.

What EET did

The Act on the Registration of Sales (Act No. 112/2016) required certain businesses to report each sale to the Financial Administration electronically at the moment it happened. The till or software sent the transaction data to the authority's server, which returned a fiscal identification code (FIK). The business printed it on the receipt with other codes, so that the customer could see the sale had been registered. Businesses also had to display a notice that they took part. A customer who got no receipt could report the business.

The aim was to cut under-reporting of cash sales, which affects both income tax and VAT. The government, with Andrej Babiš as finance minister, argued that a large share of tax revenue leaked away through the grey economy and that automatic reporting would level the field between honest and dishonest firms. It also promoted a receipt lottery, Účtenkovka, to get customers asking for receipts.

The phases

The law was built to roll out in four stages, each for a different group of businesses. The first, from 1 December 2016, covered restaurants, pubs, hotels and other catering and accommodation businesses. The second, from March 2017, covered retail and wholesale. The third and fourth, meant for other sectors such as craft trades, services and the professions, never began as planned: Parliament and the government kept moving the dates.

Some businesses were exempt or treated differently, such as those with very small, occasional sales, and certain categories including some online sales and services. Firms near the edge of the rules sometimes had to ask the authority for a ruling.

The arguments

Supporters and opponents made very different cases, and the quarrel often ran along party lines.

Supporters said EET would collect more tax, curb unfair competition and make life harder for evaders. They pointed to similar systems in other countries, Croatia and Hungary among them, and to rises in reported turnover after the first phase.

Opponents, including parts of the right-wing opposition and business associations, said it loaded cost and bureaucracy on small businesses, especially small shops, village pubs and sole traders. They argued that the state was treating every entrepreneur as a likely cheat and that a constant flow of data gave it too much insight into private economic life. In 2016 some critics warned of a creeping restriction of freedom. The Constitutional Court dealt with a challenge to the law in 2017 (check the court's website for the ruling).

Economists went on debating the effects. Czech and foreign researchers looked at changes in reported sales and VAT collection and found measurable but uneven effects. Anyone after a verdict should check the official evaluations and the academic literature rather than political claims from either side.

Suspension and repeal

The scope shrank before the scheme vanished. The third and fourth phases kept slipping. In spring 2020, during the Covid-19 emergency, the obligation to register sales was suspended to ease the burden on businesses, and the suspension was extended. The Fiala government, in office from the end of 2021, proposed abolishing the law, and Parliament passed a repeal in 2022, effective 1 January 2023. After that date businesses no longer reported sales through EET.

The parties that formed the 2021 government had campaigned against the system, so the repeal kept a promise. The question did not go away. Some form of electronic sales reporting came back into political debate, and a modernised version, often called "EET 2.0", has been put forward by the government formed after the 2025 election (as of 2026; check the Ministry of Finance and the Financial Administration for whether a law has passed and from when it applies). Shape and timetable depend on the government and Parliament.

What it meant for customers and staff

On the shop floor the change was easy to see. Tills and apps had to be online, with an offline mode for outages in which the business generated its own code and sent the data later. Staff needed training, and owners had to buy or update equipment, with a tax relief for part of the cost in the early years. Waiters and cashiers had to hand over a receipt for every sale, and customers could use the official app to check that it had been registered. Many small operators complained about cost and connection problems. Others found the paperwork manageable. Experience varied by sector and size, which is part of why the later phases stalled.

What stayed

Repeal did not remove the other tools. VAT-registered businesses still file the control statement (kontrolní hlášení), which lists invoices and lets the tax office compare data between buyers and sellers. The VAT rules are in Czech VAT explained and how to file a Czech VAT return. Businesses must still issue and keep valid invoices and receipts (Czech invoicing rules) and keep accounts (Czech accounting basics). Inspections go on, and the Financial Administration (roles and tools) uses data analytics to choose cases for audit.

Another case where the state tightened control of a cash-heavy trade is the spirits market after 2012, described in the Czech methanol crisis.

For consumers the receipt is still good practice, as proof of purchase for complaints and warranties. Consumer law entitles a customer to evidence of the purchase when asked.

Why the episode still matters

EET is a case study in how a government weighs tax collection against administrative cost and trust. The same measure was sold as fairness and attacked as intrusion, and it disappeared as fast as the government that brought it in. Anyone who runs or plans a business in Czechia should follow the Financial Administration's announcements, which come in English as well as Czech.

Frequently asked questions

Is EET still in force?

No. The Sales Registration Act was repealed with effect from 1 January 2023, after the system was suspended in 2020.

When did EET start?

On 1 December 2016 for catering and accommodation, with retail and wholesale following in March 2017.

What was the FIK code?

A fiscal identification code returned by the tax authority's system and printed on the receipt as proof that the sale had been registered.

Will a new system come?

A modernised version has been discussed by later governments. Check the Ministry of Finance for the current position.

If you run a business that takes cash, ask your accountant which reporting duties apply to you today.

This is a general explainer, not legal or tax advice.