Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Laws change frequently. Always verify current requirements at financnisprava.cz, cssz.cz, and vzp.cz, and consult a licensed Czech tax advisor (daňový poradce) for your specific situation.
Invoicing a foreign client from Czech Republic is straightforward once you understand the VAT rules, the required invoice fields, and the payment mechanics. Whether you are invoicing a startup in Germany, a media agency in the UK, or a technology firm in the United States, the principles are the same — but the details matter. This guide covers everything you need to know as a Czech OSVČ (self-employed person) sending invoices across borders.
Legal Basis: Where Is the Service Actually Taxed?
The starting point for any cross-border invoice is the concept of place of supply. Under §9 of Act No. 235/2004 Coll. (zákon č. 235/2004 Sb., o dani z přidané hodnoty — the Czech VAT Act, ZDPH), services provided to a taxable person (a business) established in another country are deemed to be supplied at the location of the customer — not in Czech Republic. This means that such services fall outside the scope of Czech VAT.
The practical implication: if you are an OSVČ providing consulting, software development, design, translation, or similar services to a business client in another EU member state or in a non-EU country, you generally do not charge Czech VAT on that invoice. The Czech tax system is not the place where this transaction is taxed.
However, the exact treatment depends on whether you are a VAT payer (plátce DPH) in Czech Republic, and on where your client is established.
Non-VAT-Payer (Neplátce DPH)
If your Czech taxable turnover has not exceeded 2 000 000 CZK in the preceding 12 consecutive calendar months and you have not voluntarily registered for Czech VAT, you are a neplátce DPH — a non-registered taxpayer. This is the simplest situation for invoicing foreign clients.
As a neplátce, you invoice the net price only. You do not charge any VAT — not Czech VAT, not any other country's VAT. Add a brief note on your invoice such as:
"VAT not applicable — non-registered taxpayer (neplátce DPH)."
This note signals to your client that no VAT was charged and that they should not expect a VAT amount on the invoice. It also protects you in the unlikely event of a query from a tax authority. Your invoice total equals your net fee.
VAT Payer + EU B2B Client: Reverse Charge
If you are a Czech VAT payer (plátce DPH) and your client is a VAT-registered business in another EU member state, the reverse charge mechanism applies under §9(1) and §92a of the Czech VAT Act. Under reverse charge:
- You do not add Czech VAT to the invoice.
- Your client accounts for VAT in their own country, at their own country's VAT rate.
- You are required to include the text "Reverse charge" on the invoice — this is a mandatory EU requirement under the VAT Directive.
- You must include your client's valid EU VAT number (their DIČ / VAT ID) on the invoice.
- You are required to report the supply in your Souhrnné hlášení (EC Sales List) — a monthly or quarterly report submitted to the Czech financial authority listing all reverse-charge supplies to EU business customers.
Always verify your client's EU VAT number before invoicing at vies.ec.europa.eu (the EU VIES database). An invalid VAT number means reverse charge cannot be applied, which may leave you liable for Czech VAT.
VAT Payer + Non-EU Client: Export of Services
If your client is established outside the European Union — the United States, United Kingdom, Canada, Australia, India, and so on — the supply of services is treated as an export of services under Czech VAT law. No Czech VAT is charged. You do not need to add a "Reverse charge" note, but it is good practice to note that Czech VAT is not applicable due to the client's non-EU establishment.
Your invoice is simply for the net amount, payable in whatever currency you have agreed.
Required Fields for Cross-Border Invoices
Whether you are a VAT payer or non-payer, a well-formed cross-border invoice should include the following fields. Missing fields can cause your client's accounts payable team to reject the invoice or delay payment.
| Field | Notes |
|---|---|
| Your full legal name and address | As registered with the Czech trade authority |
| Your IČO (Czech company ID) | Mandatory on all Czech invoices |
| Your DIČ (Czech VAT number) | Required only if you are a VAT payer; omit if neplátce |
| Client's full name and address | As registered in their country |
| Client's VAT number (EU B2B) | Required for reverse charge; verify at VIES first |
| Invoice number and date of issue | Sequential numbering recommended |
| Date of taxable supply | The date the service was delivered (may differ from invoice date) |
| Description of services | Be specific — vague descriptions can delay payment |
| Net amount and currency | CZK, EUR, USD, or any agreed currency |
| "Reverse charge" note | Mandatory for VAT payer + EU B2B; not required for non-EU clients or neplátce |
| IBAN | Essential for international bank transfers |
| SWIFT / BIC code | Required alongside IBAN for non-SEPA transfers |
| Payment due date | Standard is 14 or 30 days; agree with your client |
SEPA vs SWIFT: Understanding International Payments
How your client pays you depends on where they are located:
SEPA (Single Euro Payments Area)
SEPA covers the EU member states plus Norway, Iceland, Liechtenstein, Switzerland, and the UK. If your client is in a SEPA country and the payment is in euros, they can use a SEPA Credit Transfer — a fast, low-cost bank transfer that typically arrives within one business day. For SEPA payments, your IBAN is sufficient. No SWIFT/BIC code is required for intra-SEPA EUR transfers (though including it never hurts).
Czech Republic is a SEPA member. You can receive SEPA EUR payments directly into a Czech bank account, even though Czech Republic uses CZK as its domestic currency.
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
For payments from outside the SEPA zone — USA, Canada, Australia, India, and most of the rest of the world — payments are routed via the SWIFT network. You must provide both your IBAN and your bank's SWIFT/BIC code. SWIFT transfers typically take 2–5 business days and may involve correspondent bank fees, which can be deducted from the transfer amount. Clarify with your client who bears the transfer fees (OUR = sender pays, SHA = split, BEN = recipient pays).
Invoicing in Foreign Currencies
Czech law does not require invoices to be denominated in Czech koruna. You are free to invoice in euros, US dollars, British pounds, or any other currency agreed with your client.
If you are a VAT payer, you must record the CZK equivalent of each transaction in your VAT records, using either the Czech National Bank (ČNB) exchange rate on the date of the taxable supply, or a fixed rate agreed internally (if Czech tax rules permit this in your specific situation). Check the current ČNB rates at cnb.cz.
If you are a neplátce and use paušální výdaje (flat-rate expense deduction), foreign-currency income is converted to CZK at the rate on the date of receipt or the ČNB rate — confirm the correct method with your tax advisor.
How Taxorio Helps with International Invoices
Taxorio generates IBAN-enabled invoices for Czech OSVČ, including correct handling of reverse charge for EU B2B clients. You can:
- Create invoices with your IČO, DIČ, and the client's EU VAT number pre-filled
- Add the "Reverse charge" note automatically when invoicing EU business clients
- Set invoice currency to EUR, USD, or any other currency
- Include your IBAN and SWIFT/BIC code on every invoice
- Export your income records for your annual tax return and VAT reports
This means you can create a compliant cross-border invoice in under two minutes, without needing to remember which fields are mandatory for each scenario.
Reminder: This article is informational only. VAT rules for cross-border services can be complex, especially for mixed supplies, digital services, or non-standard service types. Always verify your specific situation at financnisprava.cz or consult a licensed Czech tax advisor.