🇨🇿 Czech Republic — Proforma vs Advance Invoice in 2026

This guide is in English, for people invoicing under Czech law as a self-employed individual (OSVČ) or a limited company (s.r.o.) in the Czech Republic. The terms proforma and zálohová faktura ("advance invoice", often just zálohovka) get mixed up constantly. Both exist to get you paid before you deliver. Here is what each one means, how they differ, and how to account for a deposit.

Quick answer

A proforma invoice is usually for the full amount of the deal. An advance invoice (zálohová faktura) is for part of the payment. Neither is a tax document, so you do not remit VAT from them. Once the customer pays, you issue a proper invoice — or, as a VAT payer, a tax document for the payment received — and only then does the VAT obligation arise. If the deal falls through before payment, you simply delete or cancel the proforma or advance invoice.

Main takeaways

Who this applies to

OSVČ and s.r.o. invoicing under Czech law. The worked example below shows both a VAT payer and a non-VAT payer.

Proforma vs advance invoice — what's different?

Both are issued up front, before you start work or ship goods. They tell the customer how much to pay and for what, and they often act as the trigger for you to begin (web hosting, made-to-order goods, a first project with a new client). In practice the two are used very similarly, but there are differences.

What is a proforma invoice?

A proforma invoice is generally issued for the whole amount of the deal — sometimes called a full advance invoice. It is a request for payment, not an accounting or tax document.

What is an advance invoice (zálohová faktura)?

You issue an advance invoice when you want only part of the payment up front — for a job with input costs (materials, subcontractors), or as confirmation the customer is serious. The customer pays the deposit, you deliver, and afterwards you issue an invoice for the remainder, or a full settlement invoice.

VAT and accounting for an advance invoice

A proforma and an advance invoice are not tax documents under the VAT Act. So if you issue one, you do not remit VAT from it. That is useful when a deal falls apart: an unpaid advance invoice or proforma can simply be deleted or cancelled. Once the customer pays, archive it.

How do you record an advance invoice you receive?

An advance invoice you get from a supplier is not entered into your accounts — it is neither an accounting nor a tax document. What enters your accounts is the document the supplier issues after you pay the deposit. Keep the paid advance invoice for a possible audit.

And when the payment arrives?

Once your customer pays the proforma or advance invoice, you create a proper invoice or a tax document for the payment received, which is binding. For VAT payers, the obligation to remit VAT arises at that point.

Accounting for an advance invoice, step by step

You do not post the advance invoice itself anywhere — it is only recorded. Accounting starts when the money arrives.

VAT payer

Example: a carpenter takes an order for a bespoke wardrobe at CZK 30,000. He wants a 50% deposit up front.

1. Issue the advance invoice (3 July 2026). The carpenter issues an advance invoice for CZK 15,000 and sends it. Nothing is posted yet, the advance invoice just says how much to pay and where.
2. Receive the payment (6 July 2026). The customer sends CZK 15,000. The carpenter now has 15 days to issue a tax document for the payment received and send it to the customer. It must break out the VAT and the date of taxable supply. The carpenter remits that VAT in the relevant period.
3. Deliver and issue the settlement invoice (20 July 2026). After delivering the wardrobe, the carpenter issues the final (settlement) invoice for the full CZK 30,000, subtracts the CZK 15,000 deposit already paid, and the customer pays the remaining CZK 15,000. Unlike the advance invoice, the settlement invoice is an accounting and tax document, so the carpenter remits the VAT on it (after deducting the VAT already paid on the deposit).

Non-VAT payer

For a non-VAT payer, advance invoices mainly work as insurance against non-payers, and the "accounting" is simpler, because there is no VAT to deal with. The deposit received counts as income on the day it lands in the account. After delivering the service you issue a settlement invoice, subtract the deposit, and the balance becomes income when the customer pays it.

How our tools help

Our free Czech invoice generator builds the underlying document — line items, amounts, and your registration-note footer — in your browser, with no account.

A free Podnikio account handles the full chain around a deposit: issue the proforma or advance invoice, let a connected business bank account match the payment automatically, then generate the tax document for the received payment with the VAT correctly computed, and have the paid deposit deducted from the final invoice — so you never lose track of the amounts or the VAT. It also keeps your issuer details, client list, and payment methods saved, plus a history of every document.

Frequently asked questions

Is there a minimum due date on a proforma?

No. A proforma or advance invoice is a request for payment; you set the date. Its core content is the payment details: amount, variable symbol, account number, a description of the goods or service, and optionally a due date.

Do I remit VAT from a proforma?

No. Neither a proforma nor an advance invoice is a tax document. VAT is remitted only once you issue the tax document for the payment received (or the settlement invoice).

What if the deal falls through?

If the proforma or advance invoice is unpaid, delete or cancel it — nothing has entered your accounts. If it was already paid, you handle it as a returned payment and correct the related documents.

Contact us

If you are unsure how deposits and advance invoices fit your VAT situation, feel free to reach out. We offer a free initial consultation.