Prolongation of COVID – Accomodation
In September 2020, following a decision by the Czech Government and the European Commission, the Ministry of Regional Development of the Czech Republic issued a Call for applications for a grant under the COVID-Accommodation (COVID-Ubytování) grant title. COVID-Accommodation aims to compensate Mass Accommodation Facility operators who have been forced to stop their accommodation services in March, April, and May 2020 as a result of government measures.
Call for applications was open from 11.9. to 30. 10 and then extended until 3. 11.
- Natural person who, as of 14. 3. 2020 was a tax resident of the Czech Republic
- Legal person who, as of 14. 3. 2020, was a tax resident of the Czech Republic or the EU or EEA
and at the same time:
- Operator of a Mass Accommodation Facility in the Czech Republic
- Business licence for accommodation services or hospitality services
- Not an Unreliable Payer or an Unreliable Person
- Has no overdue liabilities from pre-COVID period to the State
- Is not in bankruptcy or liquidation or in the relevant proceedings
- Has determined whether it is an Autonomous or Partner Enterprise, see Commission Regulation (EU) No 651/2014 of 17 June 2014
- Has identified a category of the enterprise (Micro, Small, Medium-sized, Large Enterprise) see Commission Regulation (EC) No 800/2008 of 6 August 2008
- Fulfils or commits to the duties of the Czech Statistical Office’s (CSO) reporting unit (monthly/quarterly guest reports)
- Waives the right to make further claims against the State for damages in connection with measures against COVID-19
- Is Mass Accommodation Facility (construction where accommodation and related services are provided; it is not an apartment or family house or building for family recreation)
- Hotel/motel/botel with at least 10 rooms
- Hotel garni with at least 10 rooms (limited catering services)
- Guesthouse with at least 5 rooms
- Cottage settlement
- Tourist hostel / hostel with a minimum of 10 beds
- Is operated in the Czech Republic
- Is marked with the Official Category and Class Certification
- Is assigned the Accommodation Serial Number (PAGINA) based on the duty of the CSO reporting unit
Amount of subsidy
The maximum amount of the subsidy (MAS) is individual to a facility with a maximum limit of EUR 800 000. It is calculated based on the number of available rooms (AR), a flat rate according to the category and class of accommodation – CZK 100 to CZK 330 room/night (FR), 72 days of the applicable period (AP), which are further multiplied by the seasonality coefficient calculated based on the guest questionnaire for the CSO (SC) and decreased by the compensation bonus awarded by Act No. 159/2020 Coll. (CB).
MAS = AR * FR * (AP*SC) – CB
Handing in documents after filling out the application
Given the expiration of the application period, it is appropriate to focus on the elements of the application that can be handed in even after the submission itself, in particular the Official Certification of the Category and Class of Accommodation issued by the Association of Hotels and Restaurants (AHR) or the Association of Campsites for Campsites and Cottage Settlements or the Czech Tourist Club for Tourist Hostels and the PAGINA number assigned by the CSO.
Official certification of the category and class of accommodation
Regarding the Certification of the Category and Class of the Accommodation, COVID-Accommodation is lenient as it can be temporarily replaced by an affidavit, in which the operator determines the classification of its facility himself in accordance with the AHR methodology (an updated version of the methodology for 2021 will be available at the end of November 2020). Subsequently, he is obliged to receive official certification from either AHR or the relevant organization within a maximum of one year from receiving the Decision Granting the Subsidy. AHR reserves a minimum period of 60 days to process the application, so it is necessary to think about submitting the application well in advance. During the application process, an inspection is mandatory. The inspector verifies the declared standards and randomly checks the rooms. The certification is valid for 5 years and the application process is charged according to the size of the accommodation, see price list. AHR may carry out an extraordinary (complaint-based) or random check during this period and may, if deficiencies are found, set a deadline for correcting them or, in more serious cases, withdraw the certification.
Accommodation serial number
In the case of the PAGINA number, due to the congestion of the CSO, it is possible to fill in “11111111” in the application and adjust the application after the number is assigned. However, the PAGINA number is a condition for issuing the Decision Granting the Subsidy and must therefore be handed in as soon as possible. The application is free of charge and is done via the web form. CSO informs that the processing of the application can take up to 14 days, and it does not inform about a positive or negative decision. The applicant is thus referred only to their web database.
In case of any questions concerning the submission of your application or its handling, do not hesitate to contact our law firm for advice. rutland & partners has extensive experience with hospitality law and broad practice with legislation related to the COVID-19 epidemic.
- Ministry of Regional Development CZ; https://www.mmr.cz/cs/narodni-dotace/covid-ubytovani
- State Investment Support Fund; https://sfpi.cz/covid-ubytovani/
- Association of Hotels and Restaurants/Official Uniform Classification of Accommodation Establishments of the Czech Republic; https://www.hotelstars.cz/covid-ubytovani-postup
or a non-tax resident of the Czech Republic with the right to a discount pursuant to § 35ba para. 2 of the Income Tax Act, i.e. an EU or EEA tax resident who has at least 90 % of income from sources in the Czech Republic
pursuant to Section 106a of Act No. 235/2004 Coll., on Value Added Tax, as amended
against the state budget, state funds or health insurance companies
For more information on this subject, please feel free to contact:
JUDr. Monika Rutland, partner
rutland & partners, law firm
tel: +420 226 226 026