The Slovak government has released preliminary information on an essential legislative amendment to the VAT Act (Act No. 222/2004 Coll.). This amendment aims to introduce mandatory e-invoicing and real-time invoice data reporting, aligned with the EU directive on VAT regulations for the digital age.
Why this matters
The proposal targets reducing tax evasion and increasing efficiency in tax collection. By mandating e-Invoicing from January 2027, Slovakia aims to improve the speed, transparency, and accuracy of VAT-related transactions across businesses.
Key points of the proposed amendment
- Introduction of mandatory e-invoicing:
From January 1, 2027, VAT payers must issue and receive invoices in a structured electronic format compatible with EU standards. - Real-time reporting for domestic transactions:
Invoice data from domestic transactions must be electronically reported to the financial administration in real time, reducing manual interventions and speeding up processes. - Alignment with EU directive:
The legislative changes align with the Council Directive 2006/112/EC, ensuring Slovakia complies with EU-level regulations on cross-border VAT reporting by July 2030. - Registration reforms:
New VAT registration and deregistration rules will take effect on January 1, 2026, to prevent fraudulent entities from re-entering the VAT system. - Improved monitoring tools:
The financial administration will gain access to real-time data to detect tax fraud better and optimize control mechanisms.
Background and current situation
Under the current VAT Act, invoices can be issued in paper or electronic form, but paper invoices remain the most common. This slows down transaction processes and complicates payment timelines. Furthermore, businesses are only required to submit invoice data monthly through VAT control statements, which delays fraud detection efforts.
Public involvement
The public can shape this regulation by submitting comments and suggestions by January 31, 2025.
What’s next?
The draft law will enter the review process in Q2 2025, during which stakeholders can further contribute their insights.
Key takeaways for businesses
- Prepare for mandatory e-invoicing by reviewing digital invoicing solutions.
- Note the 2026 changes in VAT registration processes.
- Leverage the opportunity to provide feedback before January 31, 2025.
Slovakia’s VAT reforms reflect a broader EU initiative to digitize financial processes and combat tax fraud effectively. Domestically and cross-border businesses should align their operations with these upcoming changes to ensure compliance and efficiency.
More information is available here (in Slovakian).
