Expenses and costs · 3 min read

Expenses in a foreign currency — EUR, USD and others

How to enter an expense in a foreign currency (EUR, USD and others) in Taxorio, how the amount is automatically converted at the daily CNB rate, and what the conversion means for your VAT return.

When to enter an expense in a foreign currency

If you receive an invoice in EUR, USD or another foreign currency (say, from Google, Adobe, AWS or another foreign supplier), enter it in Taxorio in its original currency. The app converts it to CZK automatically.

How to enter an expense in a foreign currency

  1. Go to Expenses → New expense.
  2. In the Amounts & VAT section switch the Document currency field from CZK to EUR, USD, GBP, CHF or PLN.
  3. Into the Amount payable field (labelled with the chosen currency, and including VAT) enter the amount you're paying the supplier. For an invoice with no VAT — typically from a foreign supplier — this is also the tax base.
  4. Taxorio automatically fills in the CNB rate for the date of taxable supply (DUZP); if you don't fill in the DUZP, it uses the issue date instead.
  5. The conversion panel shows: the base in CZK, VAT (self-assessed) and the total in CZK.

The form lets you pick from five foreign currencies: EUR, USD, GBP, CHF and PLN. A document in another currency that lands in the inbox gets converted by Taxorio at the CNB rate on confirmation — as long as the CNB publishes a rate for it.

The CNB exchange rate

The VAT Act (§ 4(8) ZDPH) requires using the rate valid on the day the obligation to declare the tax arises. Taxorio pulls the rate straight from the CNB's exchange rate list.

  • For weekends and public holidays it uses the last available rate (the CNB doesn't publish one on non-business days).
  • You can override the rate by hand — click the rate value on the CNB rate: row and type over it.
  • Next to the rate you can see where it came from: a green ✓ CNB with the date for a rate pulled from the CNB, an orange manual for a rate you entered yourself.

Two rates on one document: VAT and income tax

A document in a foreign currency gets converted twice, and that isn't a mistake — each tax follows its own rule:

  • For VAT (the base, the deduction, self-assessment) the rate that applies is the one on the day the obligation to declare the tax arises — usually the date of taxable supply (§ 4(8) ZDPH). This rate is shown on the document as CNB rate and doesn't change once the document is recorded.
  • For income tax, what matters is how many crowns you actually paid — so the rate on the payment date (§ 38(1) of the Income Tax Act; tax records work on a cash basis, § 7b). As soon as you fill in the payment date on the expense, Taxorio pulls that day's rate on its own and shows it in the document detail on the Paid in CZK row.

The amount that enters your expense ledger, the income tax card and the return is therefore the amount actually paid. The app shows the difference from the document's CZK amount in the detail purely for information — tax records don't book exchange-rate differences anywhere.

Example. An invoice for EUR 100, supply date 1 September (rate 24.19) → base CZK 2,000, VAT CZK 419, total CZK 2,419. Paid on 5 September (rate 24.21) → CZK 2,421 paid. A VAT payer has a tax expense of 2,421 − 419 = CZK 2,002 (the CZK 419 deduction is calculated at the document's rate and doesn't change), a non-VAT payer or an identified person has CZK 2,421.

💡 For documents recorded before this feature existed (and for documents from an import, where the rate on the payment date couldn't be looked up), the tax expense stays the amount converted at the document's rate — the app doesn't recalculate them retroactively. You can tell them apart because the Paid in CZK row is missing on them.

VAT on foreign invoices

Foreign suppliers don't charge you Czech VAT. If you're a VAT payer or an identified person, you're required to declare the VAT yourself (self-assessment) — in the Classification section, set the Reverse charge field:

  • EU – service received from another EU country (§ 24 ZDPH) — software licences, cloud services, advertising platforms (Google Ads, Meta Ads…).
  • EU – goods acquired from another EU country (§ 16 ZDPH) — physical goods from an EU supplier.
  • Third country – service from outside the EU (§ 108 ZDPH) — a supplier from the USA, the UK, Switzerland and the like.

The self-assessment VAT rate is usually 21% (the standard rate for IT services, consulting, SaaS) and Taxorio pre-fills it. A VAT payer deducts this tax back in the same return, so the net effect is usually zero; an identified person has no right to a deduction, and the tax is a real cost for them.

If you're neither a VAT payer nor an identified person, you won't see the reverse charge field in Taxorio at all, and you just enter the converted amount. One thing to watch for, though: receiving a service from a supplier in another EU country turns a non-VAT payer into an identified person — see Reverse charge in expenses for details.

💡 Tip: for a document uploaded to the inbox, Taxorio recognises the currency and amount itself and, based on the supplier's tax ID or country, suggests the reverse-charge regime too. It works out the CZK amount using the CNB rate only once you confirm the document.

Issuing invoices in a foreign currency

The app can also issue outgoing invoices in EUR, USD, GBP, CHF or PLN — you pick the currency right on the invoice, and the app works out the CZK amount using the CNB rate, the same as with expenses. You can read more about this, including how to record the payment received for such an invoice, in the invoicing section of this help centre.