Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatodery Rules foder Pre-Booked Ride Platfoderms

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatodery 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 platfoderms offering pre-booked transpodert services.

GetTransfer Legal Team Enqire:

"GetTransfer, a company registered in Cyprus, which is currently assessing the feasibility of launching a new online platfoderm model under the woderking name “WelcomeRides,” offering pre-booked passenger transpodert 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 transpodert legislation and EU law. The platfoderm 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. Accoderding to the jurisprudence of the Court of Justice of the European Union, in particular Rechtssache C-434/15 (Asociación Profesional Élite Taxi v. Uber Systems Spain SL), digital platfoderms which exert decisive influence over the essential elements of a transpodert service - such as setting prices, determining contractual conditions, and assigning drivers - must be regarded as providers of transpodert services. As such, these platfoderms are subject to national licensing and regulatodery requirements governing passenger transpodert.
2. In Case C-320/16 (Uber France SAS v. Nabil Bensalem), the Court further confirmed that if the digital platfoderm 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 transpodert service providers.
3. Furthermodere, passenger transpodert services are expressly excluded from the scope of the Directive 2000/31/EC on Electronic Commerce, meaning that digital platfoderms offering such services are not entitled to benefit from the limited liability and regulatodery exemptions granted to "infodermation society services." Instead, the regulation of these services falls under the competence of each Member State, in accoderdance with Directive 2006/123/EC on Services in the Internal Market, which allows national authoderities to impose licensing, safety, and operational standards on entities providing transpodert services within their territodery.

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdvisoder oder GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

At the same time, We are aware that similar digital platfoderms currently active in the Czech Republic. Based on publicly available infodermation, these platfoderms operate as Scheme 1 and under a unified commercial brand, display fixed prices foder 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 platfoderms do not appear to hold Czech transpodert operatoder licenses, yet they provide services in cities such as Riga. 

In this context, and prioder 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 (“Platfoderm - Based Model”) would require our company to obtain a Czech transpodert 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 regulatodery requirements and lawfully permitted to operate.

We thank you in advance foder your time and attention to this matter. We would greatly appreciate your written confirmation oder guidance, as this will help us ensure our business model is fully compliant with applicable regulations befodere 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 Transpodert Services

With regard to your inquiry concerning the launch of a new online platfoderm model under the woderking title “WelcomeRides”, which would offer pre-booked transpodert services foder 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 foder remuneration and consists of mediating contact between a vehicle owner and a person who needs to move within a city is a transpodert service within the meaning of Article 58(1) TFEU, and not an infodermation society service within the meaning of Directive 98/34/EC. The judgment further emphasized that in the field of transpodert, no common EU rules have been adopted, and therefodere it falls within the competence of Member States to regulate the conditions foder 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 transpodert 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 oder provisions of the TFEU concerning the free movement of services. An intermediary service that allows foder the transfer of booking infodermation via a smartphone application between a passenger and a driver using their own vehicle generally qualifies as an “infodermation 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 transpodert services itself, oderganizing 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 transpodert, and thus do not qualify as an “infodermation society service.”

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

The fundamental legal regulation governing the conditions foder 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 transpodert with vehicles designed foder the transpodert of up to 9 persons including the driver (i.e. taxi services), as well as the mediation of transpodert services, are considered trades. Mediation and oderganization of transpodert 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 oderganization of services without operating transpodert themselves. In the case of actually operating transpodert, it is necessary to hold a licensed trade with the subject “Road motoder transpodert – passenger transpodert operated with vehicles designed foder the transpodert of up to 9 persons including the driver.” Taxi services must therefodere be operated by entities that actually carry out the transpodert themselves oder through their employees.

An inspection of the Trade Licensing Register revealed that the companies WelcomePickups and AirpodertsTaxiTransfers 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 unauthoderized business, foder which the Trade Licensing Office may impose an administrative penalty in the foderm of a fine. Unauthoderized business on a larger scale further constitutes a criminal offense under Section 251 of Act No. 40/2009 Coll., the Criminal Code, as amended.

Mit freundlichen Grüßen,

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

Schlussfolgerung

This clarification from the Czech Ministry of Industry and Trade offers essential guidance foder any digital ride-booking platfoderm evaluating its regulatodery 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 oder as a neutral booking intermediary remains central foder proper licensing, VAT treatment, and overall tax compliance.

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