Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatory Rules for Pre-Booked Ride Platforms

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatory 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 platforms offering pre-booked transport services.

GetTransfer Legal Team Enqire:

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

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdvisor or GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

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

In this context, and prior 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 (“Platform – Based Model”) would require our company to obtain a Czech transport 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 regulatory requirements and lawfully permitted to operate.

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

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

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

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

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

Je vous prie d'agréer, Monsieur le Président, l'expression de mes sentiments distingués,

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

Conclusion

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

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