Uber in the Czech Republic: obligations and taxes of a driver
To work with Uber in the Czech Republic, it is necessary to fulfill a number of obligations:
1. To register as an individual entrepreneur:
the provision of transport services is an economic activity and is subject to registration. This type of activity can be registered as the individual entrepreneurship (OSVČ) or a firm and should be reflected in the register of business activities (živnostenský rejstřík) as well as declared in the tax authorities, social insurance institutions (PSSZ) and health insurance (VZP). Citizens of the non-EU countries without permanent residence in the Czech Republic do not have to pay for health insurance as the individual entrepreneurs.
2. To obtain a license for transporting passengers
3. To get a taxi driver’s card (tzv. žlutá karta)
It is possible to get a certificate in the local Executive Committee (městská čast) at the place of residence or in case of the Prague city in the free support center for Uber drivers.
4. To pass the exam on the terrain knowledge
The exam can be taken in the Prague Magistrate office for free. It is necessary to register at the pages of the Magistrate (Czech language). The exam can be pre-trained.
5. To register a car for taxi service:
Registration takes place at the Magistrate office where one should fill in a form and make a payment in the amount of 50 corunas.
The detailed instructions for getting a taxi driver’s card, for passing exam and registration can be found here (in Czech).
– Registration as identifikovaná osoba k DPH
As an entrepreneur accepts the terms and uses the software (the mobile application) of the Uber company located outside the Czech Republic, one (an Uber driver) becomes a person liable to pay VAT (identifikovaná osoba k DPH) from the amount of the provision (remuneration).
A registered person receives a VAT payer’s number only for the European Union, but in the Czech Republic one continues to be a non-payer of VAT. It means that the subject does not have a right to get a refund of VAT as opposed to the classic VAT payer.
A driver becomes an identified subject on the day of accepting an order from Uber. From this moment one is to submit an application for VAT registration as an identified person within 15 days. In addition, the driver is also required to file a tax return and pay the tax.
For Uber drivers DoMyTax developed a special ‘Uber’ rate that allows you to forget about downloading statistics, generating reports and even preparing an annual report for just 1250 CZK.
Feel free to contact us to get more details. We have provided services in the Czech Republic for more than 10 years.