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 exceeds CZK 326,000 in a calendar year.
- 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).
⚠️ How the app keeps watch: if you, as a non-VAT payer, issue an invoice for a service to an EU business under § 9 odst. 1, Taxorio flags the duty arising under § 6i directly when you issue the document, and again with a banner on the Overview — with the date the duty arose, and a reminder of the 15-day deadline for filing the registration application. The link from the banner leads to tax status settings, but the app doesn't change the status itself — you switch it yourself, once you're registered. More on issuing such an invoice in a separate help article on invoicing abroad.
How an IO differs from a VAT payer
| Duty | IO | VAT payer |
|---|---|---|
| Tax ID (DIČ) | ✅ Has one | ✅ Has one |
| VAT on issued invoices | ❌ Doesn't charge it | ✅ Charges it |
| VAT return (DP3) | ✅ Only for months with a received supply | ✅ Always |
| VAT control statement (KH1) | ❌ Doesn't file | ✅ Files |
| Right to a VAT deduction | ❌ Doesn't have one | ✅ Has one |
| Reverse charge from abroad | ✅ Mandatory | ✅ Mandatory |
| Tax period | Always a calendar month | Month, or quarter |
Setting up an IO in Taxorio
- Go to Settings → Company details.
- In the VAT status section, choose Identified person.
- 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.
- 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 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
The output VAT lines (1, 2) and the deduction lines (40–52) are always zero for an IO.
⚠️ Important: for an IO, VAT self-assessed on a supply under reverse charge is a pure cost — you can't deduct it. If you pay 1,000 EUR for Google Ads, your actual cost is 1,000 EUR × the CNB exchange rate × 1.21.
💡 Tip: the deadline for filing DP3 is by the 25th day of the following month. An identified person's tax period is always a calendar month — but you only file the return for months in which you had a duty to declare tax.