Invoicing German and Austrian clients in euros from a Czech s.r.o.

A Brno precision engineering company sells 70 percent of its output to Germany and Austria. All of it is invoiced in euros. Its staff, energy and Czech suppliers are paid in korunas. Every euro payment lands in a koruna account, converted at the bank's rate on arrival.

Euro invoices are normal

Czech law lets companies invoice in any currency. Most Czech exporters to the euro area invoice in euros because their customers require it. Where Czech VAT appears on the invoice, the VAT amount must also be shown in korunas.

For most services and intra-EU supplies of goods to German and Austrian businesses, no Czech VAT appears: the invoice shows both VAT numbers and refers to the reverse charge, and the sale goes in the souhrnné hlášení, the recapitulative statement of intra-EU supplies.

Books in korunas

Accounting is kept in korunas. Each euro amount is converted at the Czech National Bank's rate for the day, or at a fixed rate the company sets in its accounting policy, used consistently. When a euro receivable is paid at a different rate from the one it was booked at, the difference is an exchange gain or loss.

The conversion you do not see

The bank's conversion on arrival is separate. It happens at the bank's own rate, which includes its margin, on whatever day the money arrives. For a company that also pays euro costs, such as German steel suppliers, Austrian subcontractors, trade fairs and euro-priced software, that conversion is often reversed weeks later.

Hold euros, convert deliberately

A euro balance changes this:

1. Customer payments arrive and stay in euros.
2. Euro costs are paid from them.
3. Korunas are bought for payroll on a schedule, at a rate you see before confirming.

With fewer conversions, there are fewer exchange differences to book, and the margin is paid only on what actually needs to become korunas.

Paying into Czechia: the local rail

Source: Czech National Bank: CERTIS. Checked when this guide was last updated; the scheme's own page has the current figures.

Where Rivet fits

A Rivet business account on the Growth plan gives a Czech s.r.o. euro details with an IBAN, so German and Austrian customers pay by SEPA, plus sterling details, and US dollar details on every plan, all in the company's own name. On the Scale plan balances cover 30 currencies, korunas included. Each conversion shows its rate before you confirm and keeps it on the statement. Rivet is not a bank; regulated partner institutions hold the funds.