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Accounting & Taxes

All the important information for active creators regarding invoicing, accounting and paying your taxes.

Updated over 2 months ago

Everyone in the Czech republic that earns more than 15 000 CZK per year is obliged to pay taxes. If you are new to the process of paying taxes, we recommend visiting jakpodnikat.cz, where you can find a lot of helpful tips.

A tax invoice will be sent to your email with every payment you receive, which can be used as a statement of income. You can find more detailed instructions on accounting and paying taxes below.

How to deal with invoices from Herohero?

You can find your invoices and other documents in your Herohero account settings, specifically in the Payout section, and beside that you will find them coming every month from us to your email address 📩.

Herohero provides each creator with a document containing:

  • an invoice for the Herohero fee (1st page of the document)

  • a proof of income (2nd page of the document)

The amount indicated as commission (1st page of the document) is recorded by the creator in the expense register and, depending on the chosen method, can be claimed as a tax expense.

The creator records the amount stated in the income document (2nd page of the document) as his taxable income or revenue if he keeps a double-entry bookkeeping. The creator's income does not come from Herohero, but directly from the creator's subscribers – Herohero only collects them from subscribers and then transfers them to the creator's account. This income cannot be posted as revenue from Herohero.

A difference between a gross income and a commission charged by Herohero is not accounted for in any way.

❌ Never issue any invoice to Herohero. Always follow the instructions above and in case you are uncertain about anything, do not hesitate to consult it with your tax-advisor or contact us at [email protected].

Issuing a VAT document for a subscription

📍 In case your subscriber needs a receipt for their paid subscription, it can be found in their profile settings in the Payment section, under Receipts.

Commission invoice

Herohero acts as an intermediary and a provider of contact with your subscribers. Herohero charges you with a commission 10 % of your gross income from your subscribers + VAT as a consideration for this service. That is the reason why Herohero provides you with an invoice for these services every month that you can post to your records of expenditures 📥.

However, you can use it as a taxable expenditure from the income tax point of view only in case you apply as expenditures your so-called actual expenditures or if you choose to keep your records in an accounting form – in this case it counts as a cost. Should you choose to apply for lump sum expenses or for a lump sum tax, you cannot apply those invoices from Herohero (and neither from others) as a taxable expenditure.

In case you are a VAT payer (see our Does VAT apply to me? sections) you might be able to deduce the VAT paid within the invoice from your VAT duty regardless of the form of taxable expenditure you chose within income tax.

Confirmation of income

The second document you receive from Herohero is a confirmation of income from the subscription charges collected from your subscribers. It is a document that certifies you have received your payout directly from your subscribers. Therefore, please do not issue any other invoice to Herohero. This income does not come from Herohero, but from your subscribers.

You should keep this document as a part of your income records 📥. If you are a VAT payer, you might be obliged to issue a VAT document based on these records for the purpose of filling out your tax return.

I am a creator from an EU country other than the Czech Republic. Does VAT apply to me?

🌍 If you are a creator from an EU country other than the Czech Republic, harmonized EU VAT rules apply to you. If you are already a VAT payer in your country, enter your VAT number during registration. In this case, Herohero will issue you an invoice for its services, which will be without Czech VAT, and you will calculate the VAT yourself according to the rules of your home country.

It's okay if you are a creator from an EU country other than the Czech Republic and you are not yet a VAT payer. Consider whether you perceive your work on Herohero more as a hobby or if you intend to make a living from it. However, Herohero will issue you an invoice with VAT until you enter your VAT number. However, as soon as you provide your VAT number, Herohero will consider you a person liable to tax and will start issuing you invoices for its mediation services without VAT.

I am a non-EU creator. Does VAT apply to me?

🌍 If you are a creator from a country other than an EU country, you are most likely not subject to European VAT. Herohero will issue you invoices for its services without VAT. However, other tax rules from your country may apply to you, but please consult your tax advisor.

🗒 As a platform operator, according to Council Directive 2021/514/EU (DAC7 Directive), we have an obligation to the tax authority to disclose some selected data about you as a creator, as well as about your income that you achieve on the platform.

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