The Slovak Government is taking the first steps in the field of VAT digitization. Following its program statement for the years 2023 to 2027 where it committed to improving the fight against tax evasion, it issued preliminary information on the introduction of electronic invoicing for VAT payers and the mandatory real-time reporting of invoice data to the Financial Administration.
The proposal comes at a time when the EU has approved the obligation for member states to introduce mandatory real-time reporting of cross-border transactions by 2030. However, the Slovak Government is not waiting until 2030 with reporting of domestic transactions, as the proposed implementation timeline for individual points is as follows:
January 2027
1. Introduction of electronic invoicing
• VAT payers will be obliged to issue, send, and receive invoices in a structured electronic format.
• The structured electronic format should be set according to the European standard for electronic invoicing, which will ensure the uniformity of invoices and allow for their automatic and electronic processing.
2. Mandatory real-time reporting of electronic invoices for domestic transactions
• .Real-time reporting of domestic transactions should proceed in the same way as determined by the European Commission in the VAT in Digital Age (ViDA) package for cross-border transactions within the EU.
July 2030
3. Mandatory real-time reporting of cross-border transactions
• By July 1, 2030, the Slovak Republic is obliged to transpose the legal acts approved within the ViDA package and introduce the mandatory real-time reporting of electronic invoices for cross-border transactions within the EU.
• The reporting of cross-border transactions should be the same as reporting of domestic transactions.
The result of this initiative will be the digitization of the entire invoicing process ensuring minimal interference with the invoice until it is delivered to the Financial Administration. In connection with digitization, changes in the control mechanisms of the relevant authorities have also been announced. The wording of the draft law should be known sometime in the 2nd quarter of 2025. We will monitor the development of the legislative process and keep you informed.
If you are interested in a more detailed information of the announced new measures, do not hesitate to contact the author of the article or your standard contact person at EY Slovakia.