Financial administration has updated the methodology for electronic records of sales (hereinafter EET) for publically beneficial payers (hereinafter also non-profit organizations or entities). The main change is an increase in the limit for applying the exemption from the obligation to record sales for the secondary business activities of these entities.
Non-profit organizations such as municipal associations, public benefit companies or foundations only record revenues from the secondary business activities that they develop to support their primary non-business activities, and only if their sales exceed 300,000 crowns per year, or 5% of total revenues.
Financial administration considers small business activities as activities that are not significant and do not have the potential to compete with business entities. The limit exclusively includes revenues from business activities paid in cash, via a payment card, cheque, bill of exchange or other similar means. Revenues paid via a transfer from an account to another account are not counted into the limit.
Non-profit entities do not record revenues from a primary non-business activity, i.e. such as membership contributions, donations, grants or proceeds from public collections. If a non-profit entity organizes an event such as an annual ball, feast, public holiday celebrations or anniversary of the establishment of a municipality from which it collects revenues (admission, sale of goods and services), and the event relates to the mission of the non-profit entity and is not carried out consistently, then even the potential profits from the particular event are not revenues from business activities, and there is no obligation to record them.
According to Deputy Finance Minister Alena Schillerová, EET does not concern non-profit organizations for the most part.