In May 2020 the amendment to the Act on Electronic Records of Sales comes into effect. It concerns entrepreneurs who belong to the 3^rd and 4^th phases. That means mainly craftsmen, repairmen, farmers, bakers, butchers, confectioners, hairdressers, doctors, accountants, and advocates. The amendment makes it possible for these small entrepreneurs to record their sales in the so called offline regime. It is a model of recording sales in paper form only. For their customers, these self-employed persons will fill out sales receipts provided to them by the financial administration. Once every quarter they will have to send a specific form to the tax office with information on the amount of sales and the number of issued and cancelled receipts. This option is available to entrepreneurs who are not VAT taxable persons, whose income does not exceed CZK 600 000 annually, and who have no more than two employees.

This amendment also lowers the VAT rate to 10 % on water and sewer rates, books, catering and cleaning services, hairdressing and barbering, and many other services.  According to latest information, the Czech Pirate Party and the Civic Democratic Party (ODS) intend to challenge the amendment before the Constitutional Court.