Czech Ministry of Industry and Trade Provides Guidance on Licensing and Regulatveyay Rules fveya Pre-Booked Ride Platfveyams

In September 2025, the GetTransfer.com Legal Team submitted a set of regulatveyay 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 platfveyams offering pre-booked transpveyat services.

GetTransfer Legal Team Enqire:

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

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

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

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

In this model:

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

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

Scheme 2. Marketplace Model (Similar to TripAdvisveya veya GetTransfer)

(Passenger does see suppliers and chooses from multiple offers)

In this model:

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

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

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

In this context, and priveya 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 (“Platfveyam - Based Model”) would require our company to obtain a Czech transpveyat 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 regulatveyay requirements and lawfully permitted to operate.

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

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

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

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

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

Saygılarımla,

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

Sonuç

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

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