|E-invoicing is voluntary||No|
Czechia Electronic Invoicing and Digital Reporting Requirements
|Indirect tax control regime||Post audit|
|E-Invoicing/CTC Model||Post audit e-invoicing|
|Obligation status||Implemented for public entities|
|Governing entity||Financial Administration (Finanční Správa (FS)).|
|Infrastructure/platform||National Electronic Instrument|
|Taxpayers||Not mandatory for any taxpayers.|
|Domestic Transactions||B2B - no, B2C - no, B2G - no|
|Cross-border Transactions||Export - no, Import - no|
|Documents||Invoices, Credit notes|
|Supplier-side requirements (AR)|
|Format(s) while sending to the platform||XML (UBL 2.1, ISDOC, EDIFACT)|
|Format for exchange with buyer/recipient||Not regulated|
|Buyer-side requirements (AP)|
|Receiving document in electronic format||Mandatory to receive for public entities|
|Acknowledgement of receipt||N/A|
|Response to the document received (Accept or reject)||Not possible|
|Archiving Abroad||Allowed with conditions|
|Archiving Period||10 years from the end of the tax period in which the performance took place|
E-invoicing is permitted in Czechia but is not mandatory.
The Czech Republic intended to introduce the electronic registration of sales revenues (ERS) in 2019. Businesses subject to Czech income tax from certain sectors (hotel, restaurant services, wholesale and retail sector), would have had real-time reporting obligations in relation to their domestic supplies if the payment was made in cash, vouchers, gift cards, and the like. Bank transfers, credit, and debit card payments were out of scope. In 2022, the Czech government abolished the requirement effective January 2023, due to the decreasing amount of cash transactions. Thus, there is currently no mandatory digital reporting obligation in effect in Czechia. Taxpayers will be able to report their sales data on a voluntary basis until December 31, 2023.
Though there is no mandatory obligation in place, electronic invoices issued for B2G transactions should be accepted where they are in a format compatible with the European standard for e-invoicing. Contracting authorities should not be able to reject an e-invoice when in this format.
What Types of Businesses Does This Apply to?
E-invoicing is not mandatory for any taxpayers. However, contracting authorities shall not reject an electronic invoice issued by an economic operator for the performance of a public contract on the grounds of its format where it has been issued in a format compatible with the European standard for e-invoicing. Business entities are allowed to accept e-invoices only upon their explicit approval.
Governmental Body Responsible for E-invoicing in Czechia
|Financial Administration (Finanční Správa (FS))|
|Official website of the tax authority|
Penalties for Not Adhering to Czechia’s E-invoice Mandates
As e-invoicing is not mandatory, Czechia does not have e-invoicing-related specific penalties.
What does the e-invoicing process in Czechia look like?The entrepreneur sends an XML data message about the transaction to the Financial Authority.
- The Financial Authority sends back confirmation of receipt with a unique code (FIK - Fiscal Identification Code).
- Entrepreneur issues a receipt (including the FIK) and provides it to the customer.
- The customer receives the receipt.
- Registration of the sale can be verified through the web application of the Financial Authority. The customer can verify his/her receipt; an entrepreneur can verify the sales registered under his name.
Is SAF-T Needed in Czechia?
SAF-T is not introduced in Czechia.
E-Invoicing & Global Tax Automation with Fonoa
One way to comply with Digital Reporting Requirements in Czechia is to use a provider like Fonoa.
With Fonoa you can:
- Have one integration for your global needs, including Czechia
- Save time and money by automatically cleaning your data to minimize errors and manual work
- Utilize our validation mechanisms to ensure reporting accuracy, data completeness, full control, and compliance
- Rest assured that transactions are successfully reported or queued for internal investigation with our retry mechanisms
- Get full visibility with our dashboards by filtering criteria, analyzing granular transaction data, and quickly importing /exporting information