Simple invoicing for freelancers without VAT

What a non-VAT payer actually has to deal with

As a non-VAT payer you have nothing to do with DPH (Czech VAT): you do not state rates or tax on your invoices and you have no DIČ (VAT ID). The VAT Act does not even oblige you to issue an invoice — but you need the document for your own tax records and your clients will usually ask for it.

Only two things really matter for you: keeping track of income and expenses for income tax, and not missing the moment you become a VAT payer.

An invoice without VAT, step by step

An account set up as a non-VAT payer never shows VAT rates, so you cannot state them by mistake. Look up your client by IČO from the ARES register, add line items and send the invoice by e-mail or as a link. The Czech QR payment code is included.

• No VAT rates and no tax amount
• Your IČO, and no DIČ as a non-payer
• Document number, issue date and due date
• Description of the work, price and payment method

Turnover limits for mandatory VAT registration

Since 2025 turnover for mandatory VAT registration is tracked per calendar year and there are two thresholds. Cross 2,000,000 CZK and you become a VAT payer from 1 January of the following year (unless you choose an earlier date). If you also cross 2,536,500 CZK in the same year, you become a payer the day after crossing it. The registration form is due within 10 working days.

Taxorio calculates the turnover from your records continuously, so you see the limit coming instead of finding out too late.

Flat-rate expenses or actual costs

If you claim flat-rate expenses as a percentage of income, income records are enough and you do not need to collect receipts for expense purposes. With actual expenses it pays to record every document — and that is where receipt scanning helps.

You choose between the two in your tax return, so you can keep records and calculate both ways.

When VAT starts to matter even without the turnover

Watch out for one situation that surprises even small sole traders: if you buy services from businesses in other EU countries (typically advertising or software) or provide a service to a business elsewhere in the EU, you may have to register as an identifikovaná osoba (identified person) — regardless of your turnover. An identified person pays VAT on cross-border transactions but still invoices domestic customers without VAT.

Časté otázky