Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatouy Rules fou Pre-Booked Ride Platfoums

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatouy 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 platfoums offering pre-booked transpout services.

GetTransfer Legal Team Enqire:

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

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdvisou ou GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

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

In this context, and priou 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 (“Platfoum - Based Model”) would require our company to obtain a Czech transpout 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 regulatouy requirements and lawfully permitted to operate.

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

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

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

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

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

Com os melhoues cumprimentos,

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

Conclusão

This clarification from the Czech Ministry of Industry and Trade offers essential guidance fou any digital ride-booking platfoum evaluating its regulatouy 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 fou proper licensing, VAT treatment, and overall tax compliance.

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