An accountant for Czech contractors invoicing foreign clients

Reverse charge on a B2B invoice to a foreign client

For an ordinary remote service to a business client established abroad, the place of supply is the client's seat, not Czechia (§ 9 of Act No. 235/2004 Sb.). The invoice carries no Czech VAT and states that the customer accounts for the tax — reverse charge. We confirm the client's status and country before you send the first invoice.

Becoming an identifikovaná osoba

Providing a service with its place of supply in another EU country makes an otherwise-unregistered OSVČ an identifikovaná osoba from that day (§ 6i of the VAT Act) — narrower than full VAT registration, and it does not require the VAT Control Statement by itself. The registration application is due within 15 days of the day you become one, and failing the registration duty can be fined up to 500,000 CZK (gov.cz service page). That deadline is the reason we check the trigger before your first EU invoice, not after it.

The same status can arrive from what you buy

It is not only what you invoice: receiving a service with a Czech place of supply from a supplier not established in Czechia — foreign ad platforms, SaaS subscriptions, a foreign subcontractor — may trigger identified-person status under § 6h of the same act, with no minimum amount. How identified-person status works covers both directions.

Souhrnné hlášení, for every month with an EU supply

An identified person (or VAT payer) supplying such a service files a souhrnné hlášení within 25 days of that month's end (§ 102 of the VAT Act), electronically only, and only for months in which the supply actually happened (Financial Administration guidance). We prepare and file it as part of the agreed scope.

Full VAT registration by turnover

Registration becomes mandatory above 2,000,000 CZK turnover in a calendar year (payer from 1 January the following year) or 2,536,500 CZK (payer from the next day) — § 6 of the VAT Act, and our registration steps. Becoming a full payer also ends paušální-daň eligibility, so the two decisions are taken together.

Every one of these is checked against your specific client and contract, not assumed from the country on the invoice. For the full explanation with sources and a worked example, see IT contractor taxes in the Czech Republic.

Which VAT status applies to you

Your situation	What it means in practice
Czech clients only, turnover under 2,000,000 CZK a year	This alone does not trigger turnover-based VAT registration. Buying services from abroad can still create identified-person status, and other registration grounds must be checked. Annual income-tax and insurance filings depend on your actual tax regime.
You supply a service to a business client in another EU country	Identifikovaná osoba from the day of that supply (§ 6i), registration application within 15 days, and a souhrnné hlášení within 25 days of the end of each month in which you supplied it. Domestic sales stay outside VAT.
You buy ads, SaaS or subcontracting from a supplier established abroad	The same identified-person status can arise under § 6h with no minimum amount — worth checking before the first invoice from the supplier, not at year-end.
Turnover passes 2,000,000 CZK (or 2,536,500 CZK) in a calendar year	Full VAT payer (plátce): VAT returns and the VAT Control Statement, VAT on domestic sales, and no more paušální daň. Czech domestic turnover under § 4a counts supplies whose place of supply is in Czechia. Ordinary B2B services under § 9(1) with a place of supply abroad do not count. Check the actual supply and exceptions, not just the reverse-charge label.

The trigger decides the status; your own contract and invoices decide the date. We confirm both in writing before anything is filed.

One worked example with every line visible, built from the prices above — not an estimate and not a quote. A contractor who registers a new OSVČ in January and stays on the monthly package all year pays:

OSVČ setup, one-off	1,990 CZK
Monthly contractor accounting × 12 (1,490 CZK × 12)	17,880 CZK
First year without identified-person registration (1,990 CZK + 17,880 CZK)	19,870 CZK
Identified-person registration, if your EU setup needs it	1,990 CZK
First year with identified-person registration (19,870 CZK + 1,990 CZK)	21,860 CZK

The monthly figure is a starting price: the confirmed amount depends on the document volume we agree in writing before we start, and anything in the box below is quoted separately. This is what you pay us — the tax, social and health payments you make to the state are a different calculation, worked through line by line in the 150,000 CZK/month example on the explainer .

• § 9, Act No. 235/2004 Sb. (place of supply)
• § 6i, Act No. 235/2004 Sb. (identifikovaná osoba)
• § 102, Act No. 235/2004 Sb. (souhrnné hlášení)
• § 6, Act No. 235/2004 Sb. (VAT registration thresholds)
• gov.cz — VAT / identified-person registration: 15-day deadline, fine up to 500,000 CZK
• Financial Administration — filing the souhrnné hlášení (25 days, electronic only)
• Financial Administration — paušální režim: 2026 bands and conditions

Information on this page is general guidance and does not replace individual tax advice. Artem Chagin, founder of Ganado International s.r.o., is responsible for its content; the treatment that applies to you is always assessed against your own client and contract, not a general rule.