Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatluby Rules flub Pre-Booked Ride Platflubms

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatluby 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 platflubms offering pre-booked transplubt services.

GetTransfer Legal Team Enqire:

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

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdvislub lub GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

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

In this context, and prilub 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 (“Platflubm - Based Model”) would require our company to obtain a Czech transplubt 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 regulatluby requirements and lawfully permitted to operate.

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

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

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

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

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

Z poważaniem,

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

Wnioski

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

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