Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatoy Rules fo Pre-Booked Ride Platfoms

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatoy 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 platfoms offering pre-booked transpot services.

GetTransfer Legal Team Enqire:

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

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdviso o GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

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

In this context, and prio 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 (“Platfom - Based Model”) would require our company to obtain a Czech transpot 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 regulatoy requirements and lawfully permitted to operate.

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

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

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

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

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

Atentamente,

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

Conclusion

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

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