The Supreme Administrative Court ruled that foreign persons from other EU Member States applying for a permit to acquire electricity tax-free do not have to provide the customs administration with an extract from the Czech Commercial Register.

The relevant regulations state that the proposal to issue a permit for the acquisition of electricity without tax requires, inter alia, a current extract from the Commercial Register, an extract from the Trade Register, or an extract from another similar register if the applicant is a foreign person. Until now, the customs authorities did not recognise an extract from a public register issued by authorities in other EU Member States when issuing a permit. Foreign traders therefore had to obtain an extract from the Czech Commercial Register, which effectively led to the need to set up a branch in the Czech Republic.

The Supreme Administrative Court determined that in the case of a foreign company, an extract from another commercial register is equivalent to an extract from the Czech Commercial Register. Recognition of a licence to trade in electricity issued by another Member State is also equivalent to a Czech licence. As a result of the court's decision, there is no need to set up a branch plant and to provide an extract from the Czech Commercial Register in order to obtain a permit to acquire electricity tax-free. 

In view of the similar provisions regarding tax-free gas acquisition permits, the same conclusions can be expected for foreign gas traders.