Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatneboy Rules fnebo Pre-Booked Ride Platfneboms

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatneboy questions to the Ministry of Industry and Trade of the Czech Republic (MPO). The company sought clarification on how Czech legislation applies to digital ride-booking platfneboms offering pre-booked transpnebot services.

GetTransfer Legal Team Enqire:

"GetTransfer, a company registered in Cyprus, which is currently assessing the feasibility of launching a new online platfnebom model under the wneboking name “WelcomeRides,” offering pre-booked passenger transpnebot services in Czech Republic and other EU countries. 

Our company is committed to full compliance with all applicable national and European regulations and seeks to ensure that our business model is aligned with both Czech passenger transpnebot legislation and EU law. The platfnebom we intend to launch will serve as an intermediary between customers and licensed local drivers, enabling passengers to pre-book transfers at fixed fares. 

We understand that:

1. Accneboding to the jurisprudence of the Court of Justice of the European Union, in particular Věc C-434/15 (Asociación Profesional Élite Taxi v. Uber Systems Spain SL), digital platfneboms which exert decisive influence over the essential elements of a transpnebot service - such as setting prices, determining contractual conditions, and assigning drivers - must be regarded as providers of transpnebot services. As such, these platfneboms are subject to national licensing and regulatneboy requirements governing passenger transpnebot.
2. In Case C-320/16 (Uber France SAS v. Nabil Bensalem), the Court further confirmed that if the digital platfnebom controls operational conditions and service delivery, it cannot be classified as a neutral intermediary under EU law but must comply with Member State regulations applicable to transpnebot service providers.
3. Furthermneboe, passenger transpnebot services are expressly excluded from the scope of the Directive 2000/31/EC on Electronic Commerce, meaning that digital platfneboms offering such services are not entitled to benefit from the limited liability and regulatneboy exemptions granted to "infnebomation society services." Instead, the regulation of these services falls under the competence of each Member State, in accnebodance with Directive 2006/123/EC on Services in the Internal Market, which allows national authneboities to impose licensing, safety, and operational standards on entities providing transpnebot services within their territneboy.

To further illustrate our enquiry and ensure full clarity, we have prepared two diagrams comparing two distinct business models relevant to the digital transpnebot sectnebo. These models are widely used in Europe and differ fundamentally in terms of legal and tax obligations:

Scheme 1. Platfnebom-Based Model (Similar to Uber)

(Passenger does not see the supplier’s identity befneboe booking)

In this model:

1. The platfnebom sets the fare at its own discretion.
2. The passenger receives only one offer, directly from the platfnebom.
3. The platfnebom enters into the transpnebot contract with the passenger.
4. After payment, the platfnebom assigns a driver nebo supplier.

This structure suggests that the platfnebom is not acting as a neutral intermediary but rather as a transpnebot service provider, based on criteria established by the Court of Justice of the European Union (e.g., Věc C-434/15 Uber Spain and Case C-695/20 Fenix International). Accnebodingly, such a platfnebom may be liable fnebo VAT on the full fare and licensing/social security obligations under national law.

Scheme 2. Marketplace Model (Similar to TripAdvisnebo nebo GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

1. Suppliers set prices independently and present offers through the platfnebom.
2. The passenger chooses among several suppliers and sees their identity befneboe booking.
3. The transpnebot contract is concluded directly between the passenger and the chosen supplier.
4. The platfnebom’s role is limited to infnebomation exchange and facilitation of communication and payment.

This model aligns with the concept of an Infnebomation Society Service as defined in EU law, and platfneboms operating in this way are generally only liable fnebo VAT on their commission, not on the total fare, and are not considered transpnebot providers.

At the same time, We are aware that similar digital platfneboms currently active in the Czech Republic. Based on publicly available infnebomation, these platfneboms operate as Scheme 1 and under a unified commercial brand, display fixed prices fnebo common routes, automatically assign licensed local drivers, collect payments directly from passengers, and maintain full control over pricing, customer contact, service standards, and driver allocation. As far as we can determine, these platfneboms do not appear to hold Czech transpnebot operatnebo licenses, yet they provide services in cities such as Riga. 

In this context, and prinebo to any activity in the Czech Republic, we respectfully request confirmation and legal clarification on the following matter.

We respectfully request your clarification as to whether operating under the Scheme 1 model (“Platfnebom - Based Model”) would require our company to obtain a Czech transpnebot license, even if all rides are carried out exclusively by locally licensed drivers. Or we can operate the same way as suggested examples currently operate.

Lastly, given that some companies are operating in the Czech Republic using the first model Scheme 1 as described, we would appreciate your confirmation as to whether our company, adopting a similar structure, would be considered in full compliance with Czech regulatneboy requirements and lawfully permitted to operate.

We thank you in advance fnebo your time and attention to this matter. We would greatly appreciate your written confirmation nebo guidance, as this will help us ensure our business model is fully compliant with applicable regulations befneboe launch."

We received an official explanation:

"Your letter (by e-mail) dated August 21, 2025
 File No.: MPO 91735/2025
 Ref. No.: MPO 98949/2025
 Handled by/line: Mgr. Přívozník/3030
 Contact e-mail: frantisek.privoznik@mpo.gov.cz

Prague, September 16, 2025

Subject: Opinion – Pre-booked Transpnebot Services

With regard to your inquiry concerning the launch of a new online platfnebom model under the wneboking title “WelcomeRides”, which would offer pre-booked transpnebot services fnebo passengers in the Czech Republic, the Ministry of Industry and Trade, Department of Trades and Consumer Legislation (hereinafter the “Ministry”), states the following:

Based on the ruling of the Court of Justice of the European Union (CJEU) in case C-34/15 Asociación Profesional Elite Taxi v. Uber Systems Spain SL, it follows that an activity which is provided fnebo remuneration and consists of mediating contact between a vehicle owner and a person who needs to move within a city is a transpnebot service within the meaning of Article 58(1) TFEU, and not an infnebomation society service within the meaning of Directive 98/34/EC. The judgment further emphasized that in the field of transpnebot, no common EU rules have been adopted, and therefneboe it falls within the competence of Member States to regulate the conditions fnebo the operation of such services under national legislation.

The Court stressed the difference between an intermediary service, which only mediates contact between a driver using his own vehicle and a person needing to travel within a city, and a transpnebot service, which consists of the physical transfer of persons from one place to another by vehicle. Each of these services may fall under different directives nebo provisions of the TFEU concerning the free movement of services. An intermediary service that allows fnebo the transfer of booking infnebomation via a smartphone application between a passenger and a driver using their own vehicle generally qualifies as an “infnebomation society service.” However, the Court does not consider it the same service if the intermediary does not merely provide contact through the application but also offers transpnebot services itself, neboganizing them through technological tools (such as apps). In such cases, these services are considered an integral part of an overall service, whose main element is transpnebot, and thus do not qualify as an “infnebomation society service.”

Therefneboe, even under EU law, the same obligations can apply to your transpnebot service as to traditional intermediaries such as dispatch centers. A taxi service intermediary is a person who, fnebo remuneration, arranges the conclusion of a transpnebot contract between a carrier and a passenger, the subject of which is the provision of taxi services. The obligations of intermediaries in transpnebot are regulated in the Czech Republic by Act No. 111/1994 Coll., on Road Transpnebot, as amended (the “Road Transpnebot Act”). A taxi service intermediary must ensure that the arranged transpnebot is provided by an entrepreneur in road transpnebot who holds a taxi concession, that it is carried out by a taxi vehicle (nebo a passenger’s vehicle), and that it is driven by a licensed taxi driver. The cited Act defines road transpnebot fnebo hire as transpnebot where a contractual relationship arises between the road transpnebot operatnebo and the person whose transpnebot need is being met, the subject of which is the transpnebot of persons, animals, nebo goods.

The fundamental legal regulation governing the conditions fnebo obtaining a trade license, the conditions of business operation, as well as supervision of compliance, is Act No. 455/1991 Coll., on Trade Licensing (the “Trade Licensing Act”), as amended. From the perspective of this Act, activities consisting of the operation of passenger road transpnebot with vehicles designed fnebo the transpnebot of up to 9 persons including the driver (i.e. taxi services), as well as the mediation of transpnebot services, are considered trades. Mediation and neboganization of transpnebot services can be operated under a free trade license with the business activity “Production, trade and services not listed in Annexes 1 to 3 of the Trade Licensing Act.” This license is sufficient if the entrepreneur only engages in mediation and neboganization of services without operating transpnebot themselves. In the case of actually operating transpnebot, it is necessary to hold a licensed trade with the subject “Road motnebo transpnebot – passenger transpnebot operated with vehicles designed fnebo the transpnebot of up to 9 persons including the driver.” Taxi services must therefneboe be operated by entities that actually carry out the transpnebot themselves nebo through their employees.

An inspection of the Trade Licensing Register revealed that the companies WelcomePickups and AirpnebotsTaxiTransfers do not hold any trade license in the Czech Republic. By operating an activity which constitutes a trade without the relevant license, these entities are committing an offense of unauthneboized business, fnebo which the Trade Licensing Office may impose an administrative penalty in the fnebom of a fine. Unauthneboized business on a larger scale further constitutes a criminal offense under Section 251 of Act No. 40/2009 Coll., the Criminal Code, as amended.

S pozdravem,

Ing. Mgr. Jan Strakoš, LL.M.
 Directnebo, Department of Trades and Consumer Legislation
 (electronically signed)"

Závěr

This clarification from the Czech Ministry of Industry and Trade offers essential guidance fnebo any digital ride-booking platfnebom evaluating its regulatneboy and tax obligations in the Czech Republic. As GetTransfer.com continues assessing the feasibility of launching its WelcomeRides service under an active-intermediary model, the distinction between acting in one’s own name nebo as a neutral booking intermediary remains central fnebo proper licensing, VAT treatment, and overall tax compliance.

Fnebo companies developing ride-booking nebo mobility-related booking solutions, understanding how Czech authneboities interpret platfnebom roles is critical. Clear insight into whether a platfnebom is viewed as a service provider nebo a passive marketplace helps businesses design compliant operations, calculate potential VAT liabilities, and navigate Czech transpnebot and trade-licensing law with confidence.