Briefing Document: Slovakia Mandatory B2B E-Invoicing

Introduction:

This briefing document provides an overview of the key themes, facts, and ideas related to the implementation of mandatory Business-to-Business (B2B) electronic invoicing in Slovakia, as outlined in the provided sources from VATupdate. The focus is on the timing, the infrastructure used (Peppol), the parties involved, and the expected benefits and objectives of this measure.

Key Themes and Ideas:

Mandatory B2B E-Invoicing via Peppol:
- Slovakia is implementing a system of mandatory B2B electronic invoicing through the Peppol network, viewed as an initiative to digitize and standardize invoice processing.
- The Peppol network is described as a “decentralized” network already used by “almost 20 EU countries” for the secure exchange of electronic documents.
- The goal is to create a “unified method” that will replace the current practice of PDF formats and unsecured emails.
- Companies will not need “customer consent for delivery methods,” and “all entities will be registered in the system for secure communication.”
- Invoices will use a “secure pan-European XML format,” minimizing “manual intervention and standardizing data.”
Timeline and Roadmap:
- Slovakia implemented mandatory e-invoicing for B2G (business-to-government) transactions in 2022.
- Plans for mandatory B2B e-invoicing are now concrete.
- The Ministry of Finance has released documents for public consultation, with a deadline of January 31, 2025.
- A draft law regarding the decentralized e-invoicing system is expected by summer 2025.
- Mandatory B2B e-invoicing for domestic transactions will start on January 1, 2027. Taxpayers must follow the “European standard for e-invoicing” and report domestic transactions, with a goal of “real-time reporting to tax authorities.”
- Mandatory reporting for cross-border transactions via e-invoices will be introduced starting January 1, 2030.
Involved Parties and Their Role:
- The Slovak Government is the overarching body that has made the decision to implement and oversee the execution.
- The Ministry of Finance is responsible for drafting regulations and facilitating implementation, aiming for a “fully automated e-invoicing process.”
- The Financial Administration of Slovakia will become the Slovak Peppol Authority, playing a central role in the “five-corner model” for e-invoicing and e-reporting via the Peppol network.
- Taxpayers (B2B businesses in Slovakia) are the primary target group required to send and receive e-invoices via Peppol.
- Peppol itself is the crucial infrastructure for the secure exchange of electronic invoices.
Objectives and Expected Benefits:
- The primary goal is to digitize and standardize invoice processing.
- A significant driver is combating tax fraud and reducing the VAT gap, with the initiative also aimed at improving tax collection.
- Cost savings, improved security, and streamlined procedures are noted as key benefits, with a reduction in “reliance on paper invoices” contributing to this.
- The government also expects to simplify business operations through standardized formats compliant with EU regulations.
Technical Framework:
- The system will use a secure pan-European XML format for e-invoices, replacing current “PDF formats and unsecured emails.”
- The five-corner model implies a system where senders, recipients, access points (via Peppol), the government/tax authority, and possibly other service providers interact in a standardized and secure manner for the exchange and reporting of invoice data.

Quotations from the Sources:

“Slovakia is implementing mandatory B2B electronic invoicing through the Peppol network.” (VATupdate – 1 week ago)
“The initiative aims to digitize and standardize invoice processing.” (VATupdate – 1 week ago)
“The system will use a secure pan-European XML format.” (VATupdate – 1 week ago)
“Slovakia is implementing a decentralized e-invoicing system via the Peppol network, aiming for mandatory e-invoicing starting January 2027 for B2B domestic transactions and real-time reporting to tax authorities.” (VATupdate – 4 minutes ago)
“The Financial Administration will become the Slovak Peppol Authority, facilitating a five-corner model for e-invoicing and e-reporting…” (VATupdate – 4 minutes ago)
“Mandatory B2B e-invoicing will start on January 1, 2027.” (VATupdate – 2 months ago)
“Cross-border transactions must be reported through e-invoices starting January 1, 2030.” (VATupdate – 2 months ago)
“Ministry of Finance aims to fully automate the e-invoicing process.” (VATupdate – 2 months ago)
“Mandatory B2B e-invoicing aims to fight tax fraud, reduce VAT gap, and improve tax collection.” (VATupdate – 2 months ago)

Conclusion:

Slovakia is taking concrete steps towards the mandatory implementation of B2B e-invoicing through the Peppol network. With a clear timeline, the designation of the Financial Administration as the Slovak Peppol Authority, and a focus on a standardized XML format, the Slovak government aims to achieve significant benefits in efficiency, security, and fraud prevention. Businesses in Slovakia should prepare for these changes, with the deadline of January 1, 2027, for domestic B2B transactions being a critical milestone. The public consultation until January 2025 offers stakeholders the opportunity to provide input on the proposed regulations.

Source All Newsletters on E-Invoicing in Slovakia