Slovenia Postpones Mandatory B2B E-Invoicing to 2027 (incl. draft law)

This document summarises key aspects of proposed Slovenian legislation regarding electronic invoicing (“e-računi”). The primary driver is compliance with EU Directive 2014/55/EU, aimed at standardising e-invoicing in public procurement. However, the scope extends beyond public sector transactions, aiming to encompass all business-to-business (B2B) transactions within Slovenia, contributing to VAT fraud prevention. The legislation mandates the use of the e-SLOG standard and introduces obligations for “ponudniki e-poti” (e-path providers). The Financial Administration of the Republic of Slovenia (FURS) will have increased access to e-invoice data to combat tax evasion, especially VAT carousel fraud.

Main Themes and Key Ideas:

• Mandatory E-Invoicing:
  • The proposed legislation mandates the exchange of e-invoices between economic operators. The obligation is being extended to “all gospodarske subjekte in njihova medsebojna” (all economic entities and their mutual) transactions.
  • “Z dnem uveljavitve tega zakona za e-račune in e-dokumente, katerih prejemniki so proračunski uporabniki ali naročniki; 1. junija 2026 za ostale poslovne subjekte.” (From the date of entry into force of this law for e-invoices and e-documents whose recipients are budget users or clients; 1 June 2026 for other business entities.) This indicates a phased implementation, starting with public sector entities and later extending to all businesses.
  • The legislation allows for the eventual cessation of conventional invoicing (“papirni in e-računi”) for businesses, paving the way for exclusively electronic invoicing.
  • The ZDDV-1 (VAT Law) will be amended, restricting paper invoice use between businesses (“Možnost izbire med papirnimi in e-računi”).
• Standardisation (e-SLOG and EU Standard):
  • The e-SLOG standard is central to the new law (“Reporting according to ZIERDED will be carried out in such a way that all e-invoices must be sent to the Financial Administration of the Republic of Slovenia (hereinafter: FURS)obligatory in the e-SSTYL standard.”). All e-invoices sent to FURS must be in the e-SLOG standard.
  • Compliance with the EU standard for e-invoicing is ensured through provisions relating to public procurement. “Glede na navedeno je besedilo zakona oblikovano tako, da velja obveznost prejemanja in obdelave e-računov, če so izdani v skladu z evropskim standardom za izdajanje e-računov, za vse kategorije naročnikov” (Accordingly, the text of the law is drafted in such a way that there is an obligation to receive and process e-invoices if they are issued in accordance with the European standard for issuing e-invoices, for all categories of clients).
  • The EU standard is incorporated through references to existing legislation related to public procurement (ZJN-3, ZJNPOV, ZNKP).
• Role of “Ponudniki e-Poti” (E-Path Providers):
  • “Ponudniki e-poti” are central to the e-invoicing ecosystem. They facilitate the exchange of e-invoices between issuers and recipients. The law regulates their obligations and requires registration in the Business Register of Slovenia.
  • E-path providers must ensure secure and reliable exchange, authenticity, and integrity of e-invoices.
  • They have obligations related to data retention and automated exchange of delivery confirmations.
  • They are also responsible for providing conversions between different e-invoice formats when necessary (“verodostojno pretvorbo e-računa iz sintakse”).
  • ‘Where an e-invoice is exchanged through e-way providers, the e-invoice shall be sent to FURS by the issuer’s e-invoice provider and the e-way provider of the recipient of the invoice.’ (When an e-invoice is exchanged via e-path providers, the e-invoice must be sent to FURS by both the e-path provider of the issuer and the e-path provider of the recipient of the invoice.)
• Financial Administration (FURS) and VAT Fraud Prevention:
  • A primary goal is to combat VAT fraud, particularly “davčni vrtiljak” (VAT carousel fraud). The proposed system aims to provide FURS with timely data to detect and prevent such schemes.
  • “The introduction of e-invoices and sending e-invoices to FURS no later than 8 days from receipt/issue of the e-invoice at the issuer/recipient or from the issue/receipt of the e-invoice at the issuer/recipient, if they exchange the e-invoice directly, would significantly contribute to: faster detection of tax carousels and shell companies” (The introduction of e-invoices and sending e-invoices to FURS no later than 8 days from receipt/issue of the e-invoice at the e-path provider or from issue/receipt of the e-invoice at the issuer/recipient, if the e-invoice is exchanged directly, would thus significantly contribute to: faster detection of VAT carousels and straw companies).
  • Sending e-invoices to FURS within 8 days is a key mechanism.
  • FURS will use the data for risk analysis and targeted audits.
  • The new system allows FURS to perform systematic checks on VAT compliance.
• Obligations for Businesses (Issuers and Recipients):
  • Businesses are obligated to issue e-invoices and send them to FURS (“posredovanje e-računov za davčne namene”).
  • They are also responsible for sending data about non-electronic invoices.
  • Businesses must ensure their accounting software is compliant.
  • The legislation includes penalties for non-compliance.
• Specific Data Requirements:
  • The legislation lists mandatory data fields that must be included in each e-invoice (6. člen). These include identifiers, dates, seller/buyer information, references to contracts, goods/services details, payment instructions, and VAT breakdown.
• Consumer Protection:
• • Issuing e-invoices to consumers requires their prior consent.
• Exceptions:
  • There are exceptions, such as invoices related to defence and security contracts where confidentiality is paramount, and some accompanying billing documents. These are outlined in detail in article 4.
  • Evidence orders that have comparable values to the marginal values.
• Government Oversight and Implementation:
  • The Public Payments Administration (UJP) plays a key role in managing the e-invoicing system, including maintaining a list of accredited “ponudniki e-poti”.
  • UJP also acts as a single entry/exit point for e-invoices from Mini blagajna (“UJP bo enotna vstopna in izstopna točka”).
  • Several government bodies (UJP, FURS, Ministry of Public Administration, Ministry of Economy, Tourism and Sports, and TIRS) are responsible for monitoring the implementation of the law.
• EU Context and International Examples:
  • The document refers to the fact that some EU states have sought exemptions in order to mandate e-invoices. The experiences of countries such as Italy, France, Germany, Poland and Romania are referred to.

Key Quotes:

• “In order to ensure the secure and reliable exchange of e-invoices and e-documents and the quality of these services, the draft law regulates the obligations of e-way providers and the transparency of their operations, as well as the entry of data in the Business Register of Slovenia.” (In order to ensure the safe and reliable exchange of e-invoices and e-documents and the quality of these services, the draft law regulates the obligations of e-path providers and the transparency of their business and the entry of data in the Business Register of Slovenia.)
• “The VAT system is based on the credit method … This system provides an opportunity for various types of abuses, the most famous of which is the so-called ‘carousel tax’, which poses a serious threat to the current VAT system.” (The VAT system is based on the credit method… This system provides an opportunity for various types of abuse, the best known of which is the so-called “VAT carousel”, which poses a serious threat to the current VAT system.)

Implications:

• For Businesses: Significant changes in invoicing practices, requiring investment in compliant software and processes. Businesses must select an approved “ponudnik e-poti” or implement direct connections.
• For Government: Potential for improved VAT collection and reduced fraud. Increased efficiency in processing invoices, especially for public procurement.
• For Consumers: Minimal direct impact, but consumers need to provide consent for receiving e-invoices.
• For E-Path Providers: Opportunity for growth but also increased regulation and compliance burden.

Open Questions and Considerations:

• The sources refer to a “MSP test” (small business test). The results of this test, and any specific provisions to mitigate the impact of the legislation on SMEs, require closer examination.
• The process and criteria for UJP’s accreditation of “ponudniki e-poti” need to be clarified.
• The overall costs of implementation for businesses, particularly SMEs, need careful monitoring.