Identified person (IO) — VAT without a deduction

What an identified person is

An identified person (IO) is a natural or legal person who has a duty to register for VAT, but isn't a VAT payer in the full sense. An IO remits VAT only on specific cross-border transactions, has no right to a VAT deduction, and doesn't file the control statement.

When you become an identified person

The duty to register as an IO arises (§6g–§6l ZDPH):

• Receiving a foreign service — as soon as you receive a single service from a business not established in the Czech Republic (Google Ads, Adobe, AWS, Meta…), regardless of the amount.
• Acquiring goods from the EU — if the value of goods acquired from other EU member states, without VAT, exceeds CZK 326,000 this year or last year (§ 2a odst. 2 ZDPH). Taxorio does not keep this total for a non-payer — keep track of it yourself.
• Providing a service to the EU (§ 6i) — as soon as you, as a non-VAT payer, provide a service with the place of supply under §9 odst. 1 ZDPH to a person registered for VAT in another EU state, you become an identified person on the day of supply, and since 2025 also on the day you receive payment for that service, if that comes first (this can also trigger a duty to file the EC Sales List).

Taxorio cannot detect a service received from abroad by itself — it doesn't know the type or the place of supply from the document. As a non-VAT payer, for a document from a foreign supplier the expense form, the inbox and the AI connector only remind you that you become an identified person on the day you receive the service and must file the application within 15 days (§ 6h and § 97 ZDPH). You then switch the status in the settings yourself.

How an IO differs from a VAT payer

Setting up an IO in Taxorio

1. Go to Settings → Company details.
2. In the VAT status section, choose Identified person.
3. Enter your tax ID (DIČ) and the IO registration date (the date from which you're registered with the tax office). The tax office assigns the DIČ; for a natural person it takes the form CZ + birth number (without the slash), for a legal person CZ + company ID (IČO) — copy it exactly from the registration decision, don't derive it yourself.
4. Save — Taxorio adapts automatically: the VAT return will be in the IO format, and KH1 won't be available.

The VAT return for an IO

An IO files DP3 only for periods in which it had a duty to declare tax on a received supply under reverse charge. Without such a supply, no return is filed — in that case, Taxorio refuses the XML download and states why.

Taxorio counts only documents marked with the reverse charge. A document from a foreign supplier without it shows up on the VAT card as a warning: if it is a service (advertising, software, hosting), choose the reverse charge on it. For goods from the EU only if this year or last year you acquired goods from the EU worth more than CZK 326,000 (§ 2a(2) ZDPH), or you opted to declare the tax voluntarily (§ 2b). A hotel, meals or fuel abroad do not belong in the return.

Taxorio generates DP3 with the flag typ_platce="I" (identified person) and fills in the relevant lines:

• Lines 3–4 — goods acquired from the EU (§16–§18)
• Lines 5–6 — services received from a person registered for VAT in another EU member state (§9/1)
• Lines 12–13 — other supplies where the recipient declares the tax under § 108: services from a third country, and supplies from an EU supplier without a valid VAT ID
• Line 21 — your own services to the EU (§ 9(1)) from the same month, taken from the same documents as the EC Sales List. They don't create a return on their own: for a month with only a service to the EU you file just the EC Sales List.

The output VAT lines (1, 2) and the deduction lines (40–52) are always zero for an IO.