Slovakia
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Summary
Navigating the global tax compliance landscape successfully is complex and resource-intensive. Every country has a specific and constantly evolving set of legislated e-invoicing requirements.
Non-compliance, intentional or not, can result in significant financial penalties, business disruption, and reputational damage.
Updates
07.07.22
|05.27.22
|04.28.22
|01.04.22
|Real-time reporting of invoice data is gaining momentum in Slovakia. As with many countries, the underlying push for this appears to be related to the need to reduce tax fraud and improve the efficiency of tax collection, and to overhaul the current SAF-T system, which can incur time delays. With the proposed system, data would be required to be reported in real-time before the invoice is sent to the customer.
A draft Act is due to be submitted for feedback shortly relating to invoicing and reporting data. The new law would include an obligation to report structured invoice data to the Financial Administration (FA) on a real-time basis, drawing some parallels with countries such as Hungary adopting a similar approach. The proposed date for implementation is 2023.
Slovakia aims to capture most taxpayers within the proposed changes with only minor exceptions, irrespective of their VAT registration status.
Company accounting software or a free online application would assist in the reporting procedure. As a brief overview, the FA would verify this data and send a QR code to the supplier, which should be added to the invoice.
But it is not only suppliers who are affected. Customers would also be affected. Customers would need to send data from received invoices before VAT deduction. Any breaches of the law could be significant, resulting in fines up €10,000.
03.31.21
|The Ministry of Finance in Slovakia will soon start a consultation process regarding e-invoicing. As a result of this, the government aims to:
• Simplify the current VAT declaration system;
• Reduce fraud;
• Reduce the administrative burden for businesses.
Public law entities and solution providers in the IT sectors will be contacted during the consultations to draw up a draft legislative text with their input.
03.31.21
|Slovakia’s e-invoicing initiative is currently in the process of consultations by the authorities of the Slovak Financial Directorate. Based on the authorities’ preliminary statements about e-invoicing, Slovakia is planning to introduce real-time invoice reporting (RTIR) which should be mandatory for all transactions over time. The aim of this initiative is to reduce administrative burdens on the side of tax subjects (e.g. to reduce obligatory VAT reporting) and to obtain real-time invoicing data on the side of tax authorities and use it for tax control purposes.
Mandatory e-invoicing will be introduced gradually. The first phase will (probably during 2021) cover G2G and B2G transactions. In a later stage, (the expectation is in 2022) for B2B and B2C transactions will come under the legislation.
As we have seen in other countries, applying mandatory e-invoicing into practice requires a significant amount of new regulation and legislation.
03.31.21
|The Ministry of Finance in Slovakia will soon start a consultation process regarding e-invoicing. As a result of this, the government aims to:
• Simplify the current VAT declaration system;
• Reduce fraud;
• Reduce the administrative burden for businesses.
Public law entities and solution providers in the IT sectors will be contacted during the consultations to draw up a draft legislative text with their input.
03.31.21
|Slovakia’s e-invoicing initiative is currently in the process of consultations by the authorities of the Slovak Financial Directorate. Based on the authorities’ preliminary statements about e-invoicing, Slovakia is planning to introduce real-time invoice reporting (RTIR) which should be mandatory for all transactions over time. The aim of this initiative is to reduce administrative burdens on the side of tax subjects (e.g. to reduce obligatory VAT reporting) and to obtain real-time invoicing data on the side of tax authorities and use it for tax control purposes.
Mandatory e-invoicing will be introduced gradually. The first phase will (probably during 2021) cover G2G and B2G transactions. In a later stage, (the expectation is in 2022) for B2B and B2C transactions will come under the legislation.
As we have seen in other countries, applying mandatory e-invoicing into practice requires a significant amount of new regulation and legislation.
02.23.21
|In a recent press release the Slovakian Tax authorities pointed at a new draft law on sending data to the Financial Administration. Please follow the link here for the full text.
The intention of the draft law is to introduce the obligation for all business entities to issue an invoice for each business transaction within a certain period of time. At the same time, invoice pre-clearance is also foreseen: the obligation to send specific invoice data to the Financial Administration before the final version of the invoice is prepared and sent to the buyer. Taxpayers can fulfil their invoice reporting obligations in various ways: using an e-invoicing service provider; directly from their accounting software/ERP using a certified communication method or using a free government portal. There will also be reporting obligations on the buyer.
Currently there is no more information or technical details available. We will continue to monitor Slovakia’s progress and report these in our upcoming e-invoicing updates.
02.23.21
|In a recent press release the Slovakian Tax authorities pointed at a new draft law on sending data to the Financial Administration. Please follow the link here for the full text.
The intention of the draft law is to introduce the obligation for all business entities to issue an invoice for each business transaction within a certain period of time. At the same time, invoice pre-clearance is also foreseen: the obligation to send specific invoice data to the Financial Administration before the final version of the invoice is prepared and sent to the buyer. Taxpayers can fulfil their invoice reporting obligations in various ways: using an e-invoicing service provider; directly from their accounting software/ERP using a certified communication method or using a free government portal. There will also be reporting obligations on the buyer.
Currently there is no more information or technical details available. We will continue to monitor Slovakia’s progress and report these in our upcoming e-invoicing updates.
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