Non-profit organisation

Must a non-profit organization that is not a VAT payer issue e-invoices to individuals or public authorities?

Short answer

No. Under § 85o ods. 2 of the VAT Act, the obligation to issue electronic invoices applies exclusively to VAT payers registered under § 4, § 4b or § 4c. Because the organization is not a VAT payer, it does not have this issuing obligation, whether it invoices private individuals or a public authority such as a municipality. The receiving side is different: as a legal entity, it must be able to receive e-invoices from suppliers that are required to issue them.

Non-payer VAT

Without obligation to display

It applies irrespective of the type of customer.

B2C

Outside the system completely

To natural persons who are not able to take e-invoice not at all.

B2G (town)

Obligation on the part of the beneficiary

Act No. 215/2019 Coll. primarily obliges the contracting authority to be able to receive an electronic invoice; it does not require a non-VAT payer to issue one electronically.

Admission

Obligation Confirmed

As a legal person you must be able to accept e-invoice from payers VAT.

Detailed explanation

Furthermore, invoicing to private individuals who are not traders (B2C) is generally not subject to mandatory electronic invoicing, regardless of who the supplier is — the e-invoicing system is designed solely for B2B (between businesses) and B2G (business/organisation to public administration) transactions. When invoicing the public sector (a local authority), it should be borne in mind that, although there is a specific Act No. 215/2019 Coll. governing B2G electronic invoicing in public procurement, this places the obligation primarily on the recipient (the contracting authority) to be able to accept such invoices, not on the non-VAT payer (the supplier) to issue them electronically. Your organisation may therefore choose to issue e-invoices to the city on a voluntary basis, but there is no legal obligation to do so.

As set out in the Act

Section 85o(2) of Act No. 222/2004 Coll. on VAT, as amended by Act No. 385/2025 Coll., imposes the obligation to issue an electronic invoice on the taxable person in accordance with Sections 4, 4b or 4c. B2C transactions are generally exempt from the mandatory electronic invoicing system. B2G electronic invoicing in public procurement is regulated separately by Act No. 215/2019 Coll.

Practical examples

The organisation continues to invoice social services to natural persons in the current, non-electronic form.
An invoice for the local authority may also be sent electronically on a voluntary basis, but this is not a legal obligation for a non-VAT payer.
The organisation must be able to accept an invoice received from a VAT-registered supplier as an e-invoice via a contracted e-invoicing delivery-service provider.

Most common mistakes

“A non-VAT payer must issue e-invoices when invoicing the public sector.” Only VAT payers under Section 4, Section 4b or Section 4c are obliged to issue e-invoices, regardless of the type of customer.
“From 2027, B2C invoices must also be sent electronically.” Transactions between a business (or organisation) and a natural person who is not a business are excluded from the e-invoice system.
“If an organisation is not required to issue e-invoices, it is not required to receive them either.” The obligation to receive e-invoices is linked to the status of a legal entity, not to whether it is a VAT payer.

Conclusion

Non-profit organisation without VAT registrations need not be issued e-invoice natural or public persons; an obligation to accept e-invoice from suppliers-payers VAT is correctly identified.

Legal basis

Act No. 222/2004 Coll. on VAT, Section 85o(2) (as amended by Act No. 385/2025 Coll.)
Act No. 215/2019 Coll. on guaranteed electronic services