🇨🇿

Invoicing from Czechia

Czech VAT (Dan z pridane hodnoty) guide for service businesses

21%

Standard Rate

12%

Reduced Rate

CZ

VAT Prefix

DPH

Local Name

VAT Registration in Czechia

In Czechia, VAT is called DPH (Dan z pridane hodnoty). Registration is handled through the Financni sprava (Financial Administration), and most interactions are conducted via the online tax portal. Your VAT number (DIC) uses the CZ prefix followed by 8 to 10 digits. For legal entities, the digits typically match the ICO.

Czechia is an EU member state but has not adopted the euro. The official currency is the Czech koruna (CZK). When reporting VAT, amounts in foreign currencies must be converted to CZK using the exchange rate published by the Czech National Bank (CNB).

Registration Threshold

Czechia uses a two-tier VAT registration system. If your turnover exceeded CZK 2,000,000 (approximately €80,000) in the preceding calendar year, you become a VAT payer from 1 January of the following year. If your turnover exceeds CZK 2,536,500 (equivalent to €100,000) in the current calendar year, you must register immediately upon exceeding the threshold.

Below the threshold, you can operate without charging DPH. However, voluntary registration is possible and may be beneficial if you make significant purchases with VAT that you wish to reclaim, or if you trade with other EU businesses.

Kontrolni hlaseni (Control Statement)

Since 2016, Czech VAT-registered businesses must file a kontrolni hlaseni (VAT Control Statement) alongside their regular VAT return. This detailed report lists individual transactions and is used by the Financial Administration to cross-check VAT claims between suppliers and customers. Failure to file or errors in the Control Statement can result in significant penalties.

VAT Rates

Since January 2024, Czechia merged its two previous reduced rates (15% and 10%) into a single reduced rate of 12%:

Rate type	Percentage
Standard	21%
Reduced	15%
Second reduced	10%

For the full list of reduced rate categories, see the European Commission VAT rates reference.

The rate consolidation in January 2024 simplified the system from three rates to two. Previously, there was a 15% reduced rate and a 10% second reduced rate, which were merged into the single 12% reduced rate.

Invoice Requirements (Danovy doklad)

Czech VAT invoices (danove doklady) must contain the following mandatory elements under the VAT Act (Zakon o dani z pridane hodnoty):

Your details

1 Full business name and registered address

2 DIC (Danove identifikacni cislo – CZ VAT number)

Client details

3 Client's full name and address

4 Client DIC or VAT number (if EU B2B)

Invoice details

5 Invoice date (datum vystaveni)

6 Evidence number (cislo dokladu)

7 Date of taxable supply (datum zdanitelneho plneni)

8 Description of services or goods

Amounts

9 Net amount (zaklad dane)

10 DPH rate and DPH amount

11 Total amount including DPH

Important: CZK conversion requirement

Since Czechia uses the Czech koruna (CZK), invoices in foreign currencies must include the VAT amount converted to CZK using the exchange rate published by the Czech National Bank (CNB) on the date of taxable supply. This is mandatory for VAT reporting purposes, even if the invoice amount is in EUR or another currency.

Cross-Border Invoicing

To EU Businesses (B2B)

When invoicing a VAT-registered business in another EU country, apply the reverse charge. Invoice at 0% DPH with both your CZ VAT number (DIC) and the client's VAT number.

Required invoice note

"Dan odvede zakaznik" (Reverse charge – Art. 196, Directive 2006/112/EC)

Include both your DIC and the client's VAT number. Report in your souhrnne hlaseni (VIES return).

To EU Consumers (B2C)

For most services to EU consumers, charge Czech DPH (21%). For digital services, OSS rules may apply — you would charge the destination country's VAT rate and report through the OSS scheme.

Outside the EU

Services to clients outside the EU are outside the scope of Czech DPH. Invoice without VAT.

Required invoice note

"Plneni mimo tuzemsko" (Supply outside the domestic territory)

How Invoxo handles this

Invoxo validates EU VAT numbers via VIES automatically when you add a client. Based on the result, it applies the correct treatment — reverse charge for valid EU business clients, standard Czech DPH for domestic sales. The correct invoice notes, including "Dan odvede zakaznik", are added automatically.

Learn more about reverse charge →

VAT Returns and Reporting

Czech VAT returns (priznan k DPH) are filed monthly by default. Businesses with annual turnover below CZK 15,000,000 may opt for quarterly filing. Returns are due by the 25th of the month following the reporting period.

In addition to the VAT return, you must file the kontrolni hlaseni (Control Statement). Legal entities must file it monthly, regardless of their VAT return period; natural persons file it on the same schedule as their VAT return. This detailed report cross-references your transactions with those reported by your suppliers and customers.

Businesses with intra-EU transactions must also file a souhrnne hlaseni (recapitulative statement), summarising all reverse charge supplies to other EU member states.

Czech VAT Number Format

Czech VAT numbers follow the format: CZ + 8 to 10 digits.

Examples

CZ12345678

CZ1234567890

Note: The number of digits depends on the type of entity. Legal entities have 8 digits, individuals have 9 or 10 digits (based on their birth number). The CZ prefix is added for EU VAT purposes. The domestic equivalent is the DIC (Danove identifikacni cislo).

Common questions

What is the kontrolni hlaseni (Control Statement)? ⌄

The kontrolni hlaseni is a detailed VAT report filed alongside your regular VAT return. It allows the Financial Administration to cross-check VAT claims between suppliers and customers. Penalties for non-compliance range from fixed amounts for late filing to up to CZK 500,000 for severe obstruction of VAT administration.

What exchange rate do I use for EUR invoices? ⌄

For VAT purposes, you must convert foreign currency amounts to CZK using the exchange rate published by the Czech National Bank (CNB) on the date of taxable supply. This rate must be used for your VAT return and kontrolni hlaseni.

Why did the reduced VAT rates change in 2024? ⌄

In January 2024, Czechia merged its two previous reduced rates (15% and 10%) into a single reduced rate of 12%. This simplification was part of a broader fiscal consolidation package aimed at reducing administrative complexity for businesses and the tax authority.

What is the VAT registration threshold in Czechia? ⌄

Czechia uses a two-tier system: CZK 2,000,000 (approximately EUR 80,000) in the preceding calendar year makes you a VAT payer from 1 January of the following year, while CZK 2,536,500 (equivalent to EUR 100,000) in the current year triggers immediate registration. Voluntary registration is possible below the threshold.

Disclaimer: This guide covers common scenarios for service businesses invoicing from Czechia. For complex situations, confirm requirements with a Czech tax adviser (danovy poradce).