The Slovak Government is taking the first steps in the field of VAT digitization, issuing preliminary information in late December 2024 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 European Union (EU) has approved the obligation for EU Member States to introduce mandatory real-time reporting of cross-border transactions by 2030. (For background, see EY Global Tax Alert, EU details on VAT in the Digital Age (ViDA) package, dated 7 November 2024.)

The Slovak Government is not waiting until 2030 to require reporting of domestic transactions, however, proposing the following implementation timeline:

1. Introduction of electronic invoicing in January 2027
   
   • 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.
3. Mandatory real-time reporting of cross-border transactions in July 2030
   
   • By 1 July 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.

As a result of this initiative, the entire invoicing process will be digitized, helping to minimize interference with invoices until they are delivered to the Financial Administration. Changes in the control mechanisms of the relevant authorities have also been announced in connection with this digitization.

The wording of the draft law should be available sometime in the second quarter of 2025. Businesses should take note as the legislative process develops and watch for a follow-up Global Tax Alert.