Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulat또는y Rules f또는 Pre-Booked Ride Platf또는ms

In September 2025, the GetTransfer.com Legal Team submitted a set of regulat또는y 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 platf또는ms offering pre-booked transp또는t services.

GetTransfer Legal Team Enqire:

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

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdvis또는 또는 GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

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

In this context, and pri또는 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 (“Platf또는m - Based Model”) would require our company to obtain a Czech transp또는t 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 regulat또는y requirements and lawfully permitted to operate.

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

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

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

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

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

진심으로,

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

결론

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

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