Unpaid invoice in the Czech Republic: documents and debt recovery steps

An invoice is overdue and the customer has stopped responding. Before you send a third identical reminder, gather the documents relating to the order. In debt recovery in the Czech Republic, it is not enough to show the amount on the invoice. You need to explain why the customer should pay, for what performance and when the obligation fell due.

This procedure concerns ordinary business-to-business relationships. For consumers, foreign trade or special contractual regimes, the rules may differ. Even between companies, you cannot rely solely on the date the supplier unilaterally wrote on the invoice; the due date must be assessed according to the agreement and the applicable legal rules.

Start with the contract or order and its acceptance. Add the annexes, terms and conditions, delivery notes, handover protocols and communication about completion of the order. If the scope of work changed, also keep confirmations of the changes. For an orally agreed deal, other evidence may help, but proving the agreement tends to be more complicated.

Besides how the claim arose, check its current amount. The customer may have paid part, a credit note may have been issued or the parties may have agreed a discount. Find out whether the customer alleges defects, non-delivery or its own claim for set-off. A dispute over the quality of a delivery requires different evidence from an undisputed debt where the customer merely asks for time.

A demand letter should define the debt and protect the right to recover costs

Under Section 1968 of the Czech Civil Code, a debtor is in default if it fails to pay its debt properly and on time; the law also takes into account a situation where performance is prevented by the creditor's default. For a monetary debt, a right to default interest may arise if the conditions of Section 1970 are met. The specific scope of accessories must be determined according to the contract, the nature of the obligation and the relevant dates.

In the demand letter, identify the parties, the basis of the debt, the amount claimed and the method of payment. It must be clear what you are claiming. Before sending, verify the addressee and the address and keep proof of dispatch. If the debtor has previously disputed the claim on the merits, the letter should take into account what is actually in dispute.

Section 142a of the Czech Code of Civil Procedure links a successful claimant's right to recover the costs of proceedings for performance of an obligation, as a rule, to having sent a demand letter at least seven days before filing the lawsuit to the address for service or the last known address. The law allows an exception for reasons deserving special consideration. The pre-action letter is therefore not a general condition of the lawsuit itself, but it can significantly affect the costs outcome.

The seven-day rule for costs does not, however, extend the limitation period. The general limitation period under Section 629 of the Civil Code is three years, but its start and any deviations must be assessed separately. Another reminder alone does not stop the limitation period running. Timely assertion of the right before the competent authority and proper continuation of the proceedings have different effects under the conditions of Section 648.

Instalment agreement and court action

If the customer acknowledges the debt, an instalment agreement may make sense. Check, however, whether the promise matches the customer's means and set clear dates. A written acknowledgement of the debt as to its basis and amount has evidential significance under Section 2053 of the Civil Code. Wording such as "we'll send you something once our client pays" may not meet the necessary requirements.

In the agreement it is also advisable to address the consequences of non-payment and any security. The specific instrument must suit the debtor, the value of the claim and the available assets. A strongly worded agreement will not help if the debtor in fact has nothing to pay with. Therefore keep the question of legal merit separate from the question of actual recoverability.

If the agreement does not lead to payment, court action may be considered depending on the circumstances. A payment order is no guarantee of a quick final result; the further course also depends on the debtor's defence. For a disputed delivery, it will be important to prove not only the conclusion of the contract but also its performance, and to deal with the other party's objections.

Before incurring further costs, check whether insolvency proceedings are pending. In that situation, procedural steps and time limits other than an ordinary claim for payment may be decisive. Even a judgment does not automatically mean money in the account; in some cases enforcement of the decision or bailiff enforcement must follow.

For an assessment of a business claim, prepare the documents on the order and delivery, an overview of payments and all communication about the debt. Also state when and how previous demands were sent. With repeated non-payment, it makes sense to revisit your contract set-up: advance payments, proof of handover and payment terms.

Law as verified on 20 September 2026. Sources: Sections 619, 629, 648, 1968, 1970 and 2053 of the Civil Code; Section 142a of the Code of Civil Procedure.