Nová informace GFŘ ke zdanění přepravních služeb

New GFD information on taxation of transport services

The GFD has issued an updated Information on the taxation of passenger transport services provided through mobile applications such as Uber, Liftago and Bolt (text HERE). This replaces the previous information from 2017.

Value added tax

The GFD notes that persons providing transportation services through various mobile apps are engaged in economic activity, regardless of whether they have a business license to do so or whether they generate a profit. Thus, the transport provider must monitor its turnover (CZK 2 million from 2023) and must compulsorily register for VAT if it is exceeded. It is also possible to register voluntarily.

Access to the mobile application is considered as electronically provided service and the fee for it is taxed depending on whether the provider is established in the Czech Republic or not. An established mobile app provider will tax its service itself. In the case of a non-established mobile app provider, this obligation will be passed onto the recipient of the service (the transport provider). If the recipient is not registered for VAT, he/she becomes a so-called identified person and is obliged to register and pay the VAT. Importantly, the identified person only pays the VAT but is not entitled to deduct the input tax. 

Personal income tax

In this area, the GFD confirms that income earned by transport service providers is self-employment income under Section 7 of the ITA.

Road tax

Passenger cars and their trailers are not subject to this tax from 2022 and therefore no obligations arise for transport service providers.

We would be happy to discuss specific practical situations with you. If you have any questions, please contact the authors of this article or other members of the EY team with whom you work.

Authors:

Jevgenija Bajzíková

Adam Linek

Lenka Doležalová