Aktualizovaná informace GFŘ ke zdanění služeb přepravy osob

The General Financial Directorate has published an updated information notice (HERE) summarizing selected rules for the taxation of transport services provided via mobile applications such as Bolt or Uber. This replaces the 2023 methodology, which we informed you about HERE. GFD is issuing this information mainly in response to amended legislation.

In the area of VAT, the main change concerns registration rules. Anyone providing transport via an app is considered a taxable person. After exceeding a turnover of CZK 2 million in a calendar year, they must submit a registration application and become a VAT payer from January 1 of the following calendar year, unless they choose to become a VAT payer from the day after exceeding the threshold. If, in the meantime, turnover reaches CZK 2,536,500, they always become a VAT payer from the day after exceeding this amount.

Access to the app is considered an electronically supplied service. These services are usually provided by non-established entities. In such cases, the domestic transport provider, i.e. the driver who receives the electronically supplied service, is required to declare VAT. This applies to both VAT payers and identified persons. All tax filings must be submitted electronically.

Income from providing transport by a natural person via an app is generally considered business income. Expenses can be claimed either in actual or lump-sum amounts; for business activities with a trade license, the lump sum is set at 60% of income, without a trade license at 40%. The maximum amount of lump-sum expenses that can be claimed is capped. For completeness, these incomes are also subject to social security and health insurance contributions, similar to other types of business.

However, if the provision of passenger transport essentially meets the criteria of dependent activity, it will be treated as income from employment with all standard obligations. These include, in particular, the employer’s duty to register as a payer of tax on dependent activity and to maintain payroll records.

The good news is that passenger cars have not been subject to road tax since 2022. No new obligations arise in this area.

Authors:

Adam Linek

Ivana Svobodová

Kristýna Daňková