VAT on Digital Services in Czech Republic
If you sell SaaS, digital downloads, apps, e-books, or any electronically supplied service to customers in Czech Republic, EU VAT rules apply. The rate you charge depends on who your customer is and where your business is based.
Quick Reference
| Scenario | VAT Rate | Who Pays |
|---|---|---|
| B2C to Czech Republic consumer | 21% | You charge & remit |
| B2B to Czech Republic business | 0% (reverse charge) | Customer self-assesses |
| Domestic sale within Czech Republic | 21% | You charge & remit |
B2C Sales — Selling to Consumers in Czech Republic
When selling digital services to individual consumers (B2C) in Czech Republic, you must charge VAT at 21%. The key question is whether you need to use the One-Stop Shop (OSS) scheme:
Below €10,000/year in EU cross-border B2C sales: You can charge your home country's VAT rate instead of 21%. This threshold applies to your combined B2C sales across ALL EU countries, not just Czech Republic.
Above €10,000/year: You must charge 21% (Czech Republic's rate). Register for the OSS scheme in your home EU country to file a single quarterly return covering all EU countries.
B2B Sales — Reverse Charge to Czech Republic Businesses
For B2B sales to VAT-registered businesses in Czech Republic, the reverse charge mechanism applies. You invoice at 0% VAT and your customer accounts for the VAT themselves. You must:
1. Verify your customer's VAT number using the EU VIES system
2. Include both VAT numbers on the invoice
3. Add the wording: "Reverse charge — VAT to be accounted for by the recipient under Article 196 of Council Directive 2006/112/EC"
Non-EU Sellers Selling to Czech Republic
If your business is outside the EU (e.g., US, UK, or other non-EU country) and you sell B2C digital services to consumers in Czech Republic, you must register for the Non-Union OSS scheme in any EU member state. You'll charge 21% VAT on sales to Czech Republic consumers and file quarterly returns through your chosen EU country.
For B2B sales from outside the EU, the reverse charge still applies — your Czech Republic business customer handles the VAT.
Invoice Requirements for Czech Republic
Your invoice to a Czech Republic customer must include: your business name and address, your VAT number (or OSS number), the customer's details (and VAT number for B2B), a clear description of services, the VAT rate applied (21% for B2C, 0% with reverse charge note for B2B), and the total amount including VAT.
Use our free invoice generator to create compliant invoices with the correct legal wording automatically.