Expenses and costs · 5 min read

Reverse charge in expenses

Reverse charge in expenses — when and how to use it in Taxorio: EU services §24, services from third countries §108, EU goods §16, and the domestic regime §92a.

What reverse charge is

Reverse charge happens when, instead of the supplier, it's the recipient of the supply (you) who pays the VAT. In practice, the supplier issues you an invoice without VAT, and you calculate the VAT yourself, declare it, and — if you're a VAT payer — deduct it in full at the same time.

An identified person has the same duty to declare the VAT, but without the right to a deduction — the tax is a real cost for them.

⚠️ Who even sees this in Taxorio: the Reverse charge field is visible only to a VAT payer and an identified person. It isn't offered to a non-VAT payer, and Taxorio won't let them record a document under reverse charge at all. Receiving a service from another EU country, though, does turn a non-VAT payer into an identified person (§ 6h ZDPH) who then has to register — if that's happened to you, switch your VAT status first in Settings → Company details.

Four types of reverse charge in Taxorio

EU – service received from another EU country (§ 24 ZDPH)

Receiving a service from a business registered for VAT in another EU country. The place of supply shifts to the Czech Republic (§ 9(1) ZDPH).

Typical examples: Google Ads, Meta Ads, LinkedIn Ads, Adobe Creative Cloud, Microsoft 365, Spotify for Business, an EU consultant, a Slovak developer…

  • The supplier has an EU tax ID (DE…, AT…, SK…, FR…, IE… etc.).
  • The invoice arrives without VAT.
  • Self-assessment VAT rate: usually 21%.
  • On the DP3 return: line 5 (the standard 21% rate) or line 6 (the reduced 12% rate) — but only when the supplier has a valid EU tax ID. Without one, the supply goes on lines 12/13 as an ordinary § 108 supply. Taxorio tells the two apart automatically, based on the tax ID on the document.
  • Into section A.2 of the VAT control statement. The supplier's identification (country code + tax ID) is entered there as a pair, per the guidance from the Tax Administration — either both, or neither. When the supplier has no valid EU tax ID, Taxorio reports the line without identification, just the base and the tax — that isn't a mistake.

Third country – service from outside the EU (§ 108(3)(a) ZDPH)

Receiving a service from a business established outside the EU (the USA, the UK, Switzerland, Canada, India, Singapore and the like). The place of supply is in the Czech Republic (§ 9(1) ZDPH — the B2B rule), and you, the recipient, declare the VAT.

Typical examples: AWS, GitHub, Vercel, Figma, Notion, Canva, Cloudflare, Railway, Stripe, OpenAI, a non-EU consultant…

  • The supplier has no EU tax ID — the invoice comes from the USA, the UK, Switzerland, etc.
  • The invoice arrives without VAT (or with a local tax that doesn't count here).
  • Self-assessment VAT rate: 21% of the CZK equivalent (the CNB rate for the date of taxable supply, DUZP).
  • On the DP3 return: always line 12 (21%) or line 13 (12%) — other supplies under § 108.
  • This also belongs in section A.2 of the control statement (the supplier is a person not established in the Czech Republic). Neither the country code nor a tax ID is shown for it — by its nature it has no EU tax ID.

EU – goods acquired from another EU country (§ 16 ZDPH)

Buying goods from a VAT payer in another EU country. Use this when you're buying physical products from an EU supplier (not when buying from an online shop — that's a supply to a consumer).

  • On the DP3 return: line 3 (21%) or line 4 (12%).
  • Into section A.2 of the control statement, same as services received from the EU.

Domestic – reverse charge between Czech VAT payers (§ 92a ZDPH)

Reverse charge for selected domestic supplies. It only applies between two VAT payers — an identified person is charged ordinary VAT by the supplier, so Taxorio doesn't offer them this option at all. The recipient declares the tax, not the supplier. It covers, for example:

  • construction and assembly work (CZ-CPA classification 41 to 43, § 92e ZDPH),
  • gold, metals, scrap and waste from Annex No. 5 to the VAT Act,
  • cereals and industrial crops,
  • emission allowances and supplying electricity or gas to a trader,
  • selected goods — mobile phones, tablets and laptops, integrated circuits or video game consoles — but only when the tax base on the document exceeds CZK 100,000.

Invoices like this from domestic suppliers arrive with VAT = CZK 0 and a note reading "reverse charge" or "§ 92a".

  • Into section B.1 of the control statement. Besides the supplier's tax ID, this section also requires the supply subject code — the number the supplier states on the invoice (e.g. 4 – Construction and assembly work). Without it the document would drop out of the control statement, so Taxorio requires it and won't confirm a document without it as part of a bulk confirmation.

How to set up reverse charge in Taxorio

  1. In the expense form — or in a document's detail in the inbox — find the Reverse charge field in the Classification section.
  2. Pick the type: EU – service received from another EU country (§ 24), Third country – service from outside the EU (USA, UK, Switzerland…) (§ 108), EU – goods acquired from another EU country (§ 16), or Domestic – reverse charge between Czech VAT payers (§ 92a — VAT payers only).
  3. For the foreign types, fill in the supplier's tax ID and supplier's country (an ISO code, e.g. DE for Germany, US for the USA). These decide which lines of the return the document goes on and how it's reported in the control statement.
  4. For domestic § 92a, pick the supply subject code from the list — you'll find it on the supplier's invoice.
  5. Taxorio pre-fills the self-assessment rate (21% if the document doesn't show one) and includes the document in both the VAT return and the control statement.

A document under reverse charge must show VAT 0 — the tax is calculated from the base only on your end. A document that has both a reverse-charge regime selected and a VAT amount contradicts itself, and Taxorio won't save it.

💡 Tip: for a document uploaded to the inbox, the AI recognises on its own whether the supplier is from the EU or from a third country, suggests the reverse-charge type, and for domestic § 92a even the supply subject code. It converts a foreign-currency amount at the CNB rate when you confirm the document. Check the result anyway — the regime decides which lines of the return the document ends up on.
⚠️ When you add the regime later: you can change the regime on a document at any time, and the VAT return and control statement are only assembled the moment you download them — so a correction feeds straight into the newly generated file. What Taxorio doesn't know, though, is which periods you've already filed. If the correction falls into a period that's already sitting at the tax office, you have to file an additional return (§ 141 of the Tax Code) and a follow-up control statement (§ 101f of the VAT Act) — the app won't catch that for you.

Are you the one issuing invoices under the domestic regime, as a supplier? That's set up elsewhere — see reverse charge on issued documents in the invoicing section of this help centre.