E-invoicing in the Czech Republic (End of Digital Reporting 2023)

The Czech Republic has introduced e-invoicing in public procurement processes to streamline administrative procedures, reduce costs, and enhance transparency in government transactions. This is due to the EU VAT Directive 2014/55/EU's instructions and was implemented in Czech law through Act No. 134/2016 Coll.

E-invoicing in the Czech Republic has not been fully implemented yet, with the only obligation being that public entities must be able to process and receive e-invoices. For all other transactions, e-invoicing is voluntary and in the case of B2B, it requires the consent of the client.

Latest News

The Czech Ministry of Finance discontinued the requirement to electronically register sales revenues and real-time reporting obligations on 1 January 2023.

Implementation Timeline

• 1 October 2016: Public contracting authorities can't reject EN-16931 compliant e-invoices issued by economic operators

• April 2019: All public entities must be able to receive and process e-invoices for B2G transactions

Invoice Requirements

Czech invoices have different characteristics based on the value of the product or service. They must also be issued within 15 days after the tax point, but they are not required to add an e-signature. The invoice then must be stored in a secure archive for 10 years.

Simplified invoice for value below CCK 10,000 (approx. EUR 415)

• Invoice issuance date

• Supplier VAT number

• Description of product or service

• Amount of VAT charged

• Total, gross value of the invoice

Regular invoice for value above CCK 10,000

• Invoice issuance date

• An identification number

• Full name, address and VAT number of the supplier and customer

• Full description of the goods or services provided

• Details of quantities of goods, if applicable

• The date of the supply if it’s different from the invoice date

• Unit price and any discount if the discount is not included in the unit price

• The net, taxable value of the supply

• The VAT rate applied, and the amount of VAT in CZK

• Details to support zero VAT

• The total, gross value of the invoice

Národní Elektronický Nástroj (NEN)

The NEN is the national platform for eProcurement and allows for the transmission of e-invoices for B2G transactions. This enables public authorities to receive and process invoices on a secure platform.

Digital Reporting Obligation

In 2019, the Czech Republic introduced digital reporting or electronic registration of sales revenues (ERS) for certain sectors, but this was later abolished in January 2023 due to decreased cash transactions. Currently, there is no mandatory digital reporting obligation, and taxpayers can voluntarily report their sales data until December 31, 2023.

How DDD Invoices can help your business

DDD Invoices simplifies electronic invoicing in the Czech Republic by providing a solution that integrates into your existing software through a single API. This allows companies to automate the invoicing process and satisfy VAT e-invoicing rules in the NEN platform. We handle e-invoice creation, distribution, and archiving, allowing you and your clients to send and receive e-invoices seamlessly within your existing software.

We stay up to date with local tax regulations, so you don’t have to. Mandatory e-invoicing compliance and business expansion into the Czech Republic will become a breeze. If we do not currently serve a territory where you require e-invoicing, let us know, and we can develop it in 2-3 weeks. This way, we can ensure VAT compliance at all times, wherever you do business.

FAQs about e-invoicing in the Czech Republic