Whether you're starting a business or getting into invoices for the first time at work, it's good to know the ins and outs.

What is an invoice?

An invoice is an accounting document issued by a business for a service or goods sold and at the same time it receives these documents from its suppliers for their goods.

Often, an invoice or accounting document is also confused with a tax document, but this is only issued by VAT payers. Therefore, tax documents and accounting documents also have slightly different elements.

If you pay VAT to the state, you must issue an invoice - a tax document for all your transactions.

Be sure to include the following details in such an invoice:

  • Details of the supplier and customer - name of the person or company,
  • Your company's registered office,
  • Company ID and VAT number,
  • Register designation and registration in the Commercial Register,
  • Scope of service, number of products sold,
  • Date of issue, due date and completion, taxable transaction,
  • Form of payment of the invoice and account number,
  • Information on the amount of tax.

A sample of what such a VAT invoice looks like can be found on the InvoiceOnline.com website.

Invoice of non-payers of VAT

For entrepreneurs or self-employed persons who are not VAT payers, there is a further distinction as to whether the issuer of the invoice keeps accounts or not. In the first case, your income must exceed CZK 25 million per year.

The only difference for non-VAT payers is the indication that they do not pay VAT and the identification of the document (numerical or written - an example would be invoice No. 202006).

The essentials are:

  • Details of the supplier and customer - name of the person or company name,
  • Your company's registered office,
  • COMPANY ID NUMBER,
  • Register designation and registration in the Commercial Register,
  • Scope of service, number of products sold,
  • Date of issue, due date and completion, taxable transaction,
  • Form of payment of the invoice and account number,

As in the previous case, you can find a sample invoice for a VAT non-payer on InvoiceOnline.com.

However, the easiest way to correctly issue invoices with all the details and without complicated searching for invoicing data is to use the online invoicing tool InvoiceOnline.com. The tool will allow you to issue your invoice in a matter of minutes and you will be sure that it contains everything you need.