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Christmas Baking Business in Czech Republic Faces Government Crackdown and Taxation

The Christmas holidays are definitely behind us, but for some people they will have a very unpleasant ending. What was not addressed before, this year the state shed a lot of light on it, and it is a big question how it will actually be next year. It turns out that in this country, if someone wants to make a little extra money in the gray area, they have to expect that they will be followed quite hard.

It’s a very decent deal

All those who baked cookies at home for the so-called “business” were convinced of this. The demand for Christmas pastries is huge in the Czech Republic, while there are more and more people who don’t want to do the work with it, but prefer to buy it somewhere. Shops are naturally full of candy, but people soon discovered that this industrially produced product is not good at all. After all, it received quite a lot of criticism from Agrofert.

An important role is therefore played by all those who enjoy baking, have time for it and want to earn a little extra. There are an estimated thousands of such people in the Czech Republic, and they all become active in December and start baking sweets for their customers on a large scale. These are often pensioners who are happy that they can be useful in some way and thus improve their retirement.

They are no exception to family cooperation, where, for example, grandchildren provide marketing on social networks and grandmothers bake their excellent, tried-and-true types of sweets. People are happy to pay as much as CZK 1,500 per kilogram for such goods. If someone leans into it on a large scale, they can easily bake tens of kilograms, with sales reaching tens of thousands of crowns.

This year we sold 40 kilograms of candy. After the first orders, we even had to raise the price to CZK 1,700 per kilo. And we would easily sell two or three times as much if we had the time and energy,” says seventy-year-old Mrs. Evelína.

Foto: Shutterstock

Everything is already being resolved

At the same time, everyone is usually satisfied. The only problem is that it somehow works without the participation of the state, be it tax or control and regulatory. And since this business has expanded a lot and this year it was really big, the authorities also focused on it.

The State Agricultural and Food Inspectorate has informed that it will check the seller of sweets, from the point of view of whether they meet all the necessary conditions. But they understandably do not fulfill them, as they bake in their home kitchen as if they were doing it for themselves.

However, the authorities do not like this and have already started secret inspections, where they order eye candy and then examine everything. They can also request access to the establishment, i.e. to your home. Regardless of the fact that there are really hefty fines in the amount of tens of thousands of crowns for violating the standards.

Also read: Big changes in banks. Czechs will lose money immediately, act fast

Another factor to consider is taxes. Starting this year, internet platforms are required to inform the financial authorities about who sold what on them. If you sold the candy on some online marketplaces, it is quite possible that the financier will know about it and will also expect you to pay him an adequate amount.

Foto: Shutterstock

2023-12-29 15:00:00
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