VAT Rates, Daily and Mileage Allowances and E-archiving in Czech Republic

Employees of Czech Republic companies travelling for business may be entitled to per diem allowances as set out below.

Domestic Daily Allowance

In Czech Republic, the employer in a commercial organization can grant tax-free allowances up to the minimum limit. For public organizations including schools, hospitals, public administrations, it is possible to grant allowance up to the higher limit.

The employee is not entitled to meal allowance if during a business trip that lasts:

• 5 to 12 hours he was provided with two free meals

• 12 to 18 hours he was provided with three free meals

Source: https://www.mpsv.cz/vyhlasky-2

https://www.e-sbirka.cz/sb/2024/475/0000-00-00?zalozka=text

Foreign daily allowance

Regulation determines a standard rate per country that can be paid to employees to cover daily expenses excluding hotels. The standard rate is specified in foreign currency.

An employee is not entitled to meal allowance abroad if during his business trip abroad that lasts:

• 5 to 12 hours he was provided with two free meals;

• 12 to 18 hours he was provided with three free meals.

Mixed trips

Where a business trip falls into two calendar days, the most beneficial calculation for the employee should be used: either two partial days or a single day with the total number of hours.

If the domestic part of the trip is between 5 hours (greater or equal) and 24 hours and the foreign part of this trip is less equal 5 hours (1 minute till 5 hours), then the foreign part is added to the domestic part and the whole trip is considered domestic. If the foreign part of this trip is more than 5 hours, then this trip has a domestic part and a foreign part.

In addition to relevant meal allowance abroad, the employer may also provide his employee with pocket money up to 40% of the meal allowance amount pursuant to sections 170(3) and 179.

Source: ttps://www.mpsv.cz/documents/625317/625915/Labour_Code_2012.pdf/a66525f7-0ddf-5af7-4bba-33c7d7a8bfdf

https://www.mfcr.cz/cs/kontrola-a-regulace/legislativa/legislativni-dokumenty/2024/vyhlaska-c-373-2024-sb-58105

Pursuant to section 157(4) of the Labour Code, the minimum rate of the basic reimbursement for 1 km of journey in the Czechia is:

Engine	Rate
Car	CZK 5.80
Motorcycle	CZK 1.60
Moped	CZK 1.60

 

Pursuant to section 158(3), the average price of 1 liter of fuels amounts to:

• CZK 35.80 of 95 octane petrol

• CZK 40.50 of 98 octane petrol

• CZK 34.70 of diesel oil

• CZK 7.70 for 1 kilowatt hour of electricity.

The standard reimbursement rate per kilometre motoring shall be increased by at least 15% if a trailer is used with a road motor vehicle.

Source: https://www.mpsv.cz/vyhlasky-2

https://www.e-sbirka.cz/sb/2024/475/0000-00-00?zalozka=text

Electronic archiving and retention period in Czech Republic

Digitising paper invoices and destroying the original is allowed in Czech Republic, provided that the process adheres to the following legal requirements:

• Complete and accurate conversion (digital copy must reproduce all content of the original document)
• Retrievability (digitised documents must be accessible in a human-readable format and be retrievable upon request)
• Protection against alternation (digital copies must be protected against unauthorized access, alteration and deletion)
• Documented procedures (the digitalization and destruction procedures must be documented and approved by the company`s management)
• Retention period (digitised documents must be stored for 10 years)

Storage can be done outside Czech Republic as long as compliance with all legal, security and accessibility requirements under Czech Law are met.

Source: Accounting Act (Act No. 563/1991 Coll.)