Daně OSVČ 2026: paušální daň, výdajové paušály a přiznání
Kolik odvedete státu jako živnostník v roce 2026? Projděte si daň z příjmů, výdajové paušály, paušální daň i t...
Profession: IT freelancer / programmer
How to work as an IT freelancer / programmer
Programming, web development, IT consulting and data processing all fall under an unqualified trade (živnost volná) with no qualification required — you need no diploma or certificate; you simply file a trade notification (field no. 56). Thanks to low real costs, developers often benefit from the 60% lump-sum expense allowance or the flat-rate tax. But watch out for one thing almost everyone overlooks: as soon as you invoice foreign clients (EU, USA) or pay for advertising on Google / Meta, you become an identified person and have to deal with DPH (VAT).
unqualified trade (živnost volná), field no. 56
notification 1 000 Kč (online 800 Kč)
60% lump-sum expense allowance
identified person (IO) within 15 days for foreign work
How to become an IT freelancer step by step
- Meet the general conditions for a trade full legal capacity (usually 18 years of age) and good standing (no criminal record); for Czech citizens the authority obtains the criminal record extract itself. No professional qualification is required for an unqualified trade.
- Choose your unqualified trade fields — at least field no. 56 field no. 56 "Provision of software, consulting in information technology, data processing, hosting and related activities and web portals". Optionally add field 66, 47 or 72 if you will also invoice technical services, intermediation or marketing — unqualified trade fields are added free of charge. → detail
- Sort out your business address (sídlo) the address may also be your permanent residence; for rented premises you need the owner's consent. The address is entered in the Trade Licensing Register.
- Notify the trade via the Single Registration Form (JRF) online at rzp.gov.cz or in person at any trade licensing office (živnostenský úřad) or Czech POINT. One form also handles registration with ČSSZ (Czech Social Security Administration) and your health insurance company. → detail
- Pay the administrative fee of 1 000 Kč (online 800 Kč) 1 000 Kč for the first notification, 800 Kč electronically (each subsequent notification 500 Kč). The authority enters the trade in the Trade Licensing Register within 5 working days and assigns an IČO (business ID).
- Decide on your tax regime and keep an eye on DPH (VAT) choose between the flat-rate tax and the 60% lump-sum expense allowance; before you buy your first foreign advertising or start invoicing to the EU, expect to have to register as an identified person within 15 days. → detail
Flat-rate tax vs. 60% lump-sum expense allowance for IT (model income 2026)
| Annual income | 60% lump-sum expense allowance (tax base) | Flat-rate tax — band and monthly payment |
|---|---|---|
| 600 000 Kč | expenses 360 000 Kč → tax base 240 000 Kč | 1st band — 9 984 Kč/month |
| 1 000 000 Kč | expenses 600 000 Kč → tax base 400 000 Kč | 1st band — 9 984 Kč/month |
| 1 500 000 Kč | expenses 900 000 Kč → tax base 600 000 Kč | 1st band — 9 984 Kč/month (IT has ≥75% of income with the 60% allowance) |
| 2 000 000 Kč | expenses 1 200 000 Kč (cap) → tax base 800 000 Kč | 2nd band — 16 745 Kč/month |
The flat-rate tax applies only to self-employed persons (OSVČ) with annual income up to 2 000 000 Kč. Band allocation depends on the level of income and the share of activity attracting the 60% or 80% allowance: up to 1 million Kč always band 1; IT with the 60% allowance stays in band 1 up to 1.5 million Kč and moves to band 2 up to 2 million Kč. Monthly advance payments for 2026: band 1 — 9 984 Kč, band 2 — 16 745 Kč, band 3 — 27 139 Kč; due by the 20th of each month; enrolment for 2026 by 12 January 2026. Note: the flat-rate tax disregards tax credits for children and a spouse — if you claim them, a standard tax return with the 60% lump-sum expense allowance often works out better. Source: Tax Administration (Finanční správa), Act No. 586/1992 Coll. — verified 2026.
The most important IT-specific issue: VAT and the identified person for foreign work
Most developers work for foreign clients or pay for online advertising — and this automatically brings them into the VAT regime even without being a full VAT payer. (A) Google / Meta advertising: with the very first koruna of advertising invoiced from the EU (Google Ireland, Meta Ireland) you receive a service under reverse charge and must become an identified person within 15 days (§ 6h of the VAT Act). On the advertising you yourself remit 21% VAT with no right to deduct — so on 500 Kč of advertising that is an extra 105 Kč. (B) Invoicing a company in the EU (B2B): you invoice without VAT with the note "tax to be paid by the customer / reverse charge", you become an identified person (IO) (§ 6i) and submit a recapitulative statement — always by the 25th of the following month. (C) Clients from the USA / third countries: you invoice without Czech VAT; the service to a third country alone does not make you an IO (the recapitulative statement concerns only the EU), but you will still become an IO through foreign advertising. Source: Act No. 235/2004 Coll. (§ 6g–6i, § 97) — verified 2026.
The identified person DOES NOT prevent the flat-rate tax
A common worry is needless: an identified person is not a VAT payer. For domestic clients you remain a non-payer and invoice them without VAT; you have no VAT control statement and no entitlement to deduct input tax. You can therefore be in the flat-rate income tax regime and simultaneously be an identified person who remits 21% VAT on advertising or handles reverse charge with EU clients. The only condition for the flat-rate tax is that you are not a VAT payer — and an identified person satisfies this condition. You only become a full VAT payer when your turnover exceeds 2 000 000 Kč per year. More on VAT and the identified person. Source: Tax Administration (Finanční správa) — verified 2026.
Frequently asked questions from IT freelancers
What trade is needed for programming and web development?
An unqualified trade (živnost volná), specifically field no. 56 "Provision of software, consulting in information technology, data processing, hosting and related activities and web portals". This field covers development and sale of software, creation of websites and applications, IT consulting, data processing and hosting. It requires no education or certificate — the general conditions suffice (18 years of age, legal capacity, good standing/no criminal record). Note that field no. 56 does not include the sale and repair of hardware, for which you need a different trade.
Do I need any education or certificate as a programmer?
No. IT falls under an unqualified trade (živnost volná), which requires no professional qualification to be demonstrated — you need no IT diploma, certifications or proof of experience in the field, and no responsible representative is required. It is sufficient to meet the general conditions: full legal capacity (usually 18 years of age) and good standing (no criminal record).
Do I have to pay VAT when I work for a foreign client?
It depends on the client's country. If you invoice a company in the EU (B2B with a valid VAT ID), reverse charge applies: you invoice without VAT, but you must become an identified person within 15 days and submit a recapitulative statement; the client accounts for the tax on their side. If you invoice to the USA or another third country, that is also without Czech VAT, and the service itself does not make you an identified person. But beware: as soon as you buy foreign advertising (Google, Meta) or SaaS from the EU, you become an identified person regardless and must remit 21% VAT on the received service with no right to deduct.
Is the flat-rate tax worth it for me?
With annual income up to 2 000 000 Kč and without claiming tax credits for children or a spouse, usually yes — you pay one monthly amount (band 1: 9 984 Kč in 2026) and file no tax return or overview statements. However, if you claim the child tax benefit, the spouse tax credit or the nursery fee credit, you lose these in the flat-rate regime, and a standard tax return with the 60% lump-sum expense allowance often works out better. Likewise, with very low or starting income the flat-rate tax can be expensive.
How much is the lump-sum expense allowance for IT and where is its cap?
For an unqualified trade you apply a 60% lump-sum expense allowance on income. It is calculated on income of at most 2 000 000 Kč, so you can deduct a maximum of 1 200 000 Kč of expenses per year. For a programmer with low real costs (laptop, software, internet connection) the 60% allowance is almost always more advantageous than actual expenses, and it suffices to keep records of income and receivables only.
I pay for advertising on Google or Facebook — what about it?
With the very first payment for advertising invoiced from the EU (Google Ireland, Meta Ireland) you incur the obligation to become an identified person within 15 days. On the advertising price you yourself declare and remit 21% VAT under reverse charge — with no right to deduct, because you are not a VAT payer. You file a return only for the months in which advertising took place, by the 25th of the following month. The tax office can trace these payments, so they cannot be ignored.
When do I have to become a full VAT payer?
Compulsorily when your turnover for the calendar year exceeds 2 000 000 Kč — you then file an application within 10 working days and become a payer from 1 January of the following year as a rule. If in the same year you also exceed the higher threshold of 2 536 500 Kč, you become a payer on the very next day after crossing it. Voluntary registration pays off mainly if you have many domestic VAT-payer clients and substantial VAT inputs.
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