Invoicing Abroad: A Complete Checklist for OSVČ

More and more Czech entrepreneurs are providing services or selling goods abroad. Whether you work for a client in Germany, sell to Slovakia, or deliver software to the US — the moment you invoice across borders, you enter a world of specific rules. An incorrectly issued invoice can mean trouble with the tax authority, VAT complications, or unnecessary losses on exchange rates.

In this article, you'll find a complete guide to invoicing abroad correctly as an OSVČ in 2026. We'll cover the differences between invoicing within the EU and outside it, explain the reverse charge mechanism, show you the mandatory requirements for an international invoice, and clarify when you become a VAT-identified person.

The Basic Distinction: EU vs. Third Countries

When invoicing abroad, the key is to distinguish exactly where you are invoicing. VAT rules, invoice requirements, and administrative obligations differ significantly depending on whether your customer is within the European Union or outside it.

Invoicing Within the EU

The European Union operates as a single internal market with harmonised VAT rules. If you invoice a customer based in another EU member state (Slovakia, Germany, Poland, France, etc.), the rules for intra-Community supplies apply. This means the reverse charge mechanism applies — the obligation to declare and pay VAT shifts to the customer.

Key points for invoicing within the EU:

• Services for businesses (B2B): The place of supply is in the customer's country. You invoice without VAT, with a reference to reverse charge.
• Services for consumers (B2C): The place of supply is generally in the supplier's country (i.e. the Czech Republic). You invoice with Czech VAT.
• Goods for businesses (B2B): Supply of goods to another member state is VAT-exempt with the right to deduct input tax, provided you meet the conditions (goods physically leave the Czech Republic and the customer has a valid VAT ID).
• Goods for consumers (B2C): VAT rules under the OSS (One Stop Shop) scheme apply, or local registration in the customer's country is required.

Invoicing Outside the EU (Third Countries)

When invoicing countries outside the EU (USA, United Kingdom, Switzerland, Ukraine, etc.), different rules apply:

• Services for businesses: The place of supply is in the customer's country. The transaction is not subject to Czech VAT.
• Services for consumers: Depends on the type of service. For most services, the place of supply is in the Czech Republic and you invoice with Czech VAT.
• Export of goods: The export of goods outside the EU is VAT-exempt with the right to deduct input tax. You need customs documents confirming that the goods have left EU territory.

Reverse Charge – Transfer of Tax Liability

Reverse charge is a mechanism that shifts the obligation to declare and pay VAT from the supplier to the customer. In practice, this means that you, as a Czech entrepreneur, issue an invoice without VAT, and your foreign customer declares and pays the VAT in their own country according to their local rates.

When Does Reverse Charge Apply?

Reverse charge applies when providing services to a taxable person (a business) based in another EU member state. The basic rule is set out in Section 9(1) of the VAT Act (Act No. 235/2004 Coll.): the place of supply for services provided to a business is the customer's place of establishment.

Conditions for Applying Reverse Charge

For reverse charge to be correctly applied, you must meet several conditions:

1. The customer must be a taxable person — i.e. a business registered for VAT in another EU member state.
2. The customer must have a valid VAT ID — verified in the VIES system (see below).
3. The service must fall under the general rule — there are exceptions for certain services (real estate, passenger transport, cultural events, etc.) where the place of supply is determined differently.
4. The invoice must include both parties' VAT IDs — i.e. your Czech tax identification number and the customer's VAT ID.

Which Services Fall Under the General Rule?

The general rule (reverse charge for B2B) covers most services that OSVČ typically provide:

• Programming and software development
• Graphic design and website creation
• Marketing and advertising services
• Consulting and advisory services
• Translation and language services
• Accounting and legal services
• Rental of movable property

Exceptions to Reverse Charge

Some services are governed by special rules for determining the place of supply:

• Services related to immovable property — place of supply is where the property is located
• Passenger transport — place of supply is where the transport takes place
• Admission to cultural, sporting, and educational events — place of supply is where the event takes place
• Restaurant and catering services — place of supply is where the services are physically provided

Verifying VAT IDs in the VIES System

VIES (VAT Information Exchange System) is an online system operated by the European Commission that allows you to verify the validity of a VAT number registered in any EU member state. Verifying your customer's VAT ID is a crucial step when invoicing within the EU — without a valid VAT ID, you cannot apply reverse charge or VAT exemption.

VAT ID Formats in Individual EU Countries

Each EU member state has its own specific VAT ID format:

| Country | Prefix | Format | Example | |---------|--------|--------|---------| | Czech Republic | CZ | 8–10 digits | CZ12345678 | | Slovakia | SK | 10 digits | SK1234567890 | | Germany | DE | 9 digits | DE123456789 | | Poland | PL | 10 digits | PL1234567890 | | Austria | AT | U + 8 digits | ATU12345678 | | France | FR | 2 characters + 9 digits | FR12345678901 | | Netherlands | NL | 12 characters | NL123456789B01 |

When You Become a VAT-Identified Person

If you are a non-VAT payer and start trading internationally, in certain situations you must register as a VAT-identified person. This is a specific status: you act as a VAT payer in relation to foreign transactions, but remain a non-VAT payer within the Czech Republic.

Situations in Which You Must Register as a VAT-Identified Person

The obligation to register as a VAT-identified person arises in the following cases:

1. Providing a service to a business in the EU (Section 6g of the VAT Act)

As soon as you, as a non-VAT payer, provide a service falling under the general rule to a taxable person in another EU member state, you must register as a VAT-identified person. A single invoice is enough — there is no monetary threshold.

2. Acquiring goods from the EU above the threshold (Section 6g of the VAT Act)

If, as a non-VAT payer, you purchase goods from businesses in other EU member states for more than CZK 326,000 (excluding VAT) in a calendar year, you become a VAT-identified person.

3. Receiving a service from a business in the EU (Section 6h of the VAT Act)

If you receive a service falling under the general rule from a taxable person in another EU member state (e.g. you purchase software from a German company), you become a VAT-identified person.

Obligations of a VAT-Identified Person

After registering as a VAT-identified person, you have the following obligations:

• VAT return — you submit one only for months in which a tax obligation arose (i.e. when you provided or received a service to/from the EU). The deadline is the 25th day of the following month.
• EC Sales List — you submit one for months in which you provided services to businesses in the EU. The deadline is also the 25th day of the following month.
• No VAT on domestic supplies — within the Czech Republic, you act as a non-VAT payer. You do not charge VAT on invoices to Czech customers.

VAT-Identified Person vs. VAT Payer

It's important not to confuse a VAT-identified person with a VAT payer. These are different statuses with different obligations.

Mandatory Requirements for an International Invoice

An invoice sent abroad must include all the standard requirements of a Czech invoice, plus several additional details specific to international trade.

Standard Requirements (Section 29 of the VAT Act)

Every invoice — domestic or foreign — must include:

• Supplier identification — name/company name, address, company registration number (IČO)
• Supplier's tax ID (DIČ) — if you are a VAT payer or VAT-identified person
• Customer identification — name/company name, address
• Customer's tax ID / VAT ID — if registered for VAT
• Invoice number — in a continuous numerical sequence
• Date of issue of the invoice
• Date of taxable supply (DUZP) — or the date of receipt of payment if it preceded the supply
• Description of the supply — scope and subject of the goods/service delivered
• Tax base and VAT rate — if the supply is subject to Czech VAT
• VAT amount — in Czech currency

Additional Requirements for a Foreign Invoice

In addition to the above, an invoice sent abroad must include:

• IBAN — international bank account number format (24 characters for Czech accounts, starting with CZ)
• SWIFT/BIC code — international bank identifier (8–11 characters)
• Invoice currency — a clear indication of the currency (EUR, USD, GBP, etc.)
• Reverse charge reference — if the transfer of tax liability applies (see above)
• Exemption reference — if the supply is VAT-exempt (e.g. export, intra-Community supply)

Invoice Currency: CZK, EUR, or Something Else?

When invoicing abroad, you have several options for the currency in which you issue the invoice. The law does not require you to invoice in any specific currency — you may use any freely convertible currency based on the Czech National Bank (CNB) exchange rate list.

The Most Common Options

Invoicing in EUR — the most common choice for invoicing within the EU. The euro is the universal business currency in Europe and most European customers prefer it.

Invoicing in CZK — possible, but less practical for foreign customers. It works well, for example, when invoicing Slovak companies that regularly work with the Czech koruna.

Invoicing in USD — typical for invoicing customers in the USA, Canada, or countries where the dollar is the preferred currency.

Invoicing in the customer's local currency — GBP for the United Kingdom, CHF for Switzerland, etc. Convenient for the customer, but requires conversion using less common exchange rates.

Exchange Rate and Conversion to CZK

Even if you invoice in a foreign currency, you must convert the amount to Czech korunas for the purposes of your tax records or accounting. The exchange rate published by the Czech National Bank (CNB) is used for this conversion.

Exchange Rate Differences

When receiving payment in a foreign currency, exchange rate differences arise — the difference between the rate at the time of invoicing and the rate at the time of receiving payment. You must record these differences:

• Exchange rate gain — if the koruna has weakened since the invoice was issued, you receive more CZK when converted. An exchange rate gain is taxable income.
• Exchange rate loss — if the koruna has strengthened, you receive fewer CZK. An exchange rate loss is a tax-deductible expense.

Practical Scenarios for Invoicing Abroad

Scenario 1: A Non-VAT Payer Invoices Services to the EU

Situation: You are a graphic designer, a non-VAT payer, and a German company has hired you to create a logo. The fee is EUR 2,000.

Procedure:

1. Before invoicing, you must register as a VAT-identified person (within 15 days of providing the service).
2. Verify the German company's VAT ID in the VIES system.
3. Issue an invoice in EUR without VAT, with the text "Reverse charge – VAT to be accounted for by the recipient" and a reference to Article 196 of Directive 2006/112/EC.
4. Include your Czech tax ID (assigned to you upon registration) and the customer's VAT ID on the invoice.
5. By the 25th day of the following month, submit your VAT return and EC Sales List.

Scenario 2: A VAT Payer Sells Goods to the EU

Situation: You are a VAT payer and you supply goods to a Slovak company.

Procedure:

1. Verify the Slovak company's VAT ID in VIES.
2. Issue an invoice without VAT — this is an intra-Community supply, which is VAT-exempt with the right to deduct input tax (Section 64 of the VAT Act).
3. Include the wording "VAT exempt — supply of goods to another member state" and a reference to Section 64 of the VAT Act on the invoice.
4. You must prove that the goods actually left Czech territory (transport documents, customer confirmation).
5. Report the supply in your VAT return (line 20) and in the EC Sales List.

Scenario 3: An OSVČ Invoices Services to the USA

Situation: You are a programmer working for an American company. Your monthly invoice is USD 5,000.

Procedure:

1. The USA is not an EU member state, so reverse charge does not apply and there is no obligation to register as a VAT-identified person.
2. You invoice in USD without VAT — the service is outside the scope of Czech VAT (the place of supply is in the USA).
3. You do not need to include the customer's VAT ID on the invoice (American companies do not have one).
4. Include your IBAN, SWIFT, and if applicable, an ABA routing number for payments from the USA.
5. Convert the amount to CZK using the CNB rate on the date of issue for your tax records.

Scenario 4: A Non-VAT Payer Invoices Services to a Private Individual in the EU

Situation: You are a translator, a non-VAT payer, and you translate a text for a private individual in Austria.

Procedure:

1. A private individual (non-business) does not have a VAT ID — reverse charge does not apply.
2. The place of supply is in the Czech Republic (at the supplier's place of establishment) under Section 9(2) of the VAT Act.
3. Since you are a non-VAT payer, you invoice without VAT (non-VAT payers do not charge VAT even on domestic invoices).
4. You do not need to register as a VAT-identified person — this obligation only arises for B2B transactions.

EC Sales List and VAT Return

If you are a VAT payer or a VAT-identified person and you provide services or supply goods to a business in another EU member state, you must file an EC Sales List in addition to a VAT return.

EC Sales List

• Who files it: VAT payers and VAT-identified persons who had intra-Community supplies in the given period.
• Deadline: By the 25th day of the month following the month in which the supply took place.
• Form: Exclusively electronically via the MOJE daně portal.
• Content: Customer's VAT ID, supply code (0 = supply of goods, 3 = provision of services), total value of supplies.

Control Statement

The control statement applies only to VAT payers (not to VAT-identified persons). It covers domestic supplies and supplies subject to the domestic reverse charge mechanism in the Czech Republic. Intra-Community supplies are not included in the control statement — they are reported in the EC Sales List.

Common Mistakes When Invoicing Abroad

Based on practical experience, we have compiled an overview of the most common mistakes that Czech OSVČ make when invoicing internationally:

1. Missing or unverified customer VAT ID Without a valid VAT ID, you cannot apply reverse charge. If you issue an invoice without VAT and the customer's VAT ID is not valid, you risk having Czech VAT assessed by the tax authority.

2. Missing reverse charge reference Simply not showing VAT on the invoice is not enough. You must include a specific reference to the legislation (Article 196 of the Directive or Section 9 of the VAT Act).

3. Wrong exchange rate Using a rate from a different date than required by law. VAT payers must use the rate on the date of supply, not the date of issuing the invoice.

4. Late registration as a VAT-identified person Non-VAT payers often forget that they must register as a VAT-identified person within 15 days of their first service to/from the EU. Retrospective registration is problematic.

5. Missing IBAN and SWIFT A Czech bank account number in the XXXX/YYYY format is unusable for a foreign customer. Always include your IBAN and SWIFT.

6. Failure to file the EC Sales List Failure to file the EC Sales List may result in a fine. Many entrepreneurs, especially newly registered VAT-identified persons, are unaware of this obligation.

Complete Checklist for Invoicing Abroad

Summary

Invoicing abroad requires knowledge of rules that differ depending on whether you are invoicing within the EU or outside it, whether it is a B2B or B2C transaction, and whether you are selling goods or providing services. The key is to correctly determine the place of supply, verify the customer's VAT ID, choose the correct VAT treatment, and include all mandatory details on the invoice. Non-VAT payers must keep track of the obligation to register as a VAT-identified person, which arises from the very first B2B service to or from the EU.

By following the rules described in this article, you minimise the risk of issues with the tax authority and ensure that your international business activities are in good order from a tax perspective.