A practical guide to trade licences, self-employment and business in Czechia

Self-employed invoicing

You've got your first order – now what?

Relax, there's no science to it. Before you send the client an invoice, check three things: whether you need a trade licence for the order, what the invoice must contain, and when you have to record the income for tax purposes.

First, sort your order into one of three scenarios

What you need to do mainly depends on whether you already have a trade licence and whether it's a one-off matter or something you'll repeat. No unnecessary theory – just find your scenario.

  • I have a trade licence. You can invoice the order right away. Just follow the invoice requirements and record the income for tax purposes.
  • I don't have a trade licence, but I'll be taking similar orders repeatedly. As soon as it's a continuous activity carried out for profit, the Trade Licensing Act requires a trade licence – regardless of the first order being worth only a few thousand crowns. Check it with the tool Do I Need a Trade Licence? and it's best to set up the trade licence before issuing the invoice. You'll also find an overview of trade licensing offices at rzp.gov.cz.
  • It's a genuine one-off up to 50,000 Kč. If the order is truly incidental and the sum of all your occasional income for 2026 doesn't exceed 50,000 Kč, you don't need a trade licence – such income is tax-exempt under § 10(3) of the Income Tax Act. Once you exceed the limit or repeat the activity, we describe the solution in the article Doing Business Without a Trade Licence.

Note down even exempt income separately – for a possible audit it's useful to have proof of how much you were paid and by whom. You'll find the current rules at financnisprava.cz.

First order checklist

  • an email or message is enough, it doesn't have to be a formal contract for work
  • → detail
  • → detail
  • tax records, or flat-rate expenses
  • → detail

0 / 5 done

Don't have a trade licence?

Before invoicing the order, check whether you really need a trade licence for it – for repeated activity, the answer is usually yes. You'll find a quick test in the tool: Do I Need a Trade Licence? →

Frequently asked questions about your first order

Can I invoice without an IČO?
Yes, for genuinely one-off income up to 50,000 Kč a year (§ 10 of the Income Tax Act) you don't need an IČO. But once you plan to repeat the activity, it counts as business and you need a trade licence with an IČO – check it with the tool Do I Need a Trade Licence →.
How much money should I set aside for taxes and insurance?
As a rough reserve, set aside roughly 20–25% of the invoiced amount if you apply flat-rate expenses – the exact amount depends on the level of your income and the tax regime chosen. Find specific bands and advance payments under flat-rate tax 2026 →.
Do I have to have a written contract with the client?
The law usually doesn't require a written contract for a common order, a verbal agreement or an order by email is enough. However, written confirmation of the price and scope protects you in a dispute, and it's worthwhile even for a small order.
What if the client wants to pay an advance in advance?
You can require an advance and issue an advance invoice for it – that's not a tax document, just a payment request. After completing the work you issue a regular invoice, in which you deduct the advance. Find the procedure in How to Issue an Invoice →.
When do I have to declare the income from my first order for tax?
If you keep tax records, it's taxed in the year you actually received the payment – not when you issued the invoice. We summarise the deadlines for filing the 2026 tax return in Self-Employed Deadlines →.

Before you send the invoice

How to Issue an Invoice

Template and step-by-step procedure, what must not be missing from the invoice.

Do I Need a Trade Licence?

A quick test to see whether you need a trade licence for your activity.

How to Set Up a Trade Licence

A complete guide to registering a trade licence online or in person.