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27. 2. 2017

Registration of sales.

Czech Financial authority came out with a new law that should eliminate tax fraud. The idea was that all the subjects that operates with cash payments must register at Financial authority and register each payment made by cash. There are four phases of this law application:

1st December 2016 (first phase) - accommodation and food services,
1st March 2017 (second phase) – retail trade and wholesale,
1st March 2018 (third phase) - other professions, except those in the 4th phase, such as freelance professionals, transport, agriculture,
1st June 2018 (fourth phase) selected crafts and manufacturing activities.

So you might think that this law doesn't apply on us. But you were wrong. Because somehow this law is also applied on these payments: cash, credit card, cheque, promissory note, other similar means, e.g. meal ticket.

Most of our revenue comes from PayPal payments so we had to register to Financial authority and spent days on programing all this great stuff. Here is how it works:

1. Entrepreneur sends XML data message about the transaction to Financial Authority.
2. Financial Authority sends back confirmation of receipt with unique code (FIK - Fiscal identification code).
3. Entrepreneur issues a receipt (including the FIK) and provides it to the customer.
4. The customer receives the receipt.
5. Registration of the sale can be verified through the web application of the Financial Authority. The customer can verify his/her receipt; entrepreneur can verify the sales registered under his name.

But please don't worry we are just sending to Financial authority the amount of revenue and VAT we received. No personal date.

TL;DR: Andrej Babiš (Czech ministry of finance) want's to get rid of half of business and makes business without internet impossible in Czech.

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