Invoicing and Tax regulation in Slovakia

Navigating Slovakia’s evolving e-invoicing and tax regulations can be challenging. That’s why this guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.

In the guide, we will cover:

Regulations Timeline

Slovakian E-invoicing Requirements (2024 updated)

Tax Regulations

Digital Reporting

Penalties

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Regulations Timeline

A quick review of all current and upcoming regulations that Slovakia mandates regarding e-invoicing and digital reporting. For more details, check out the sections below.

 

Regulations in effect:

Public entities must be able to accept and process e-invoices.

B2B and B2C e-invoicing are voluntary.

Mandatory digital reporting of VAT returns.

 

Upcoming changes to Slovakian e-invoicing:

Start of 2025: Mandatory B2B and B2C e-invoicing in Slovakia.

 

 

Slovakian E-invoicing Requirements (2024 Updated)

The only regulation currently active in Slovakia requires public sector entities to accept and process e-invoices from their suppliers.

While B2C and B2B e-invoicing remain optional until 2025, many Slovakian businesses have proactively adopted this technology. The benefits of e-invoicing include improved operational efficiency, faster payment processing, and better compliance with tax regulations, making it a superior option to traditional paper-based invoicing.

Though e-invoicing is not yet mandatory, it is highly encouraged. To support this transition, Slovakia has implemented:

The PEPPOL network

European standard format EN 16931

Act No. 2015/2019, mandating that both central and sub-central authorities must accept e-invoices compliant with the European e-invoicing standard.

 

Governmental Body Responsible for E-invoicing

Responsibility for e-invoicing regulations in Slovakia lies with the Financial Directorate of the Slovak Republic, known as FS (Finančná správa Slovenskej republiky).

Click here to visit their official website.

 

E-invoicing Formats

Slovakia uses the XML format for sending and exchanging e-invoices. They have developed the IS EFA system, an e-invoicing standard designed to align with the European standard EN 16931, which is also compatible with the PEPPOL network.

 

E-invoice Requirements

Invoices must be issued for supplies of goods and services within 15 days of the tax point and can be issued in both electronic and paper forms. They must adhere to EU standards and include the following components:

Unique identification number

Date of supply and issuance

Identification of the seller and the buyer: including full name, address, and VAT identification number

Tax representative data: name, address, tax ID number

Details of goods or services provided: description, quantity, unit price

VAT information: total amount excluding VAT, applicable VAT rate, total VAT amount

Total amount including VAT

Currency used

Payment terms

Reference to VAT exemption

Reference to self-billing

Reference to the reverse-charge mechanism

Some transactions, however, require additional information:

B2B Transactions: Depending on the nature of the transaction, additional details such as payment terms, purchase order references, and any applicable trade terms may be required.

B2C Transactions: You can issue simplified e-invoices, which require less information than full invoices, but only if the total amount of the invoice does not exceed EUR 400.

Simplified invoices include:

 

E-invoice Archiving

E-invoices must be archived for a minimum period of 10 years. Archiving abroad is allowed under certain conditions.

 

 

Tax Regulations

VAT Rates

The standard VAT rate in Slovakia is 20%, with a reduced rate of 10% for items such as medicines and passenger transport. An even lower VAT rate of 5% applies to printed and electronic publications.

 

Corporate Tax

The corporate tax rate is 21%, with a reduced rate of 15% for companies with annual revenue below €49,790.

 

VAT on Digital Services in Slovakia

Digital services in Slovakia are generally subject to a standard rate of 20%. However, the rate can vary depending on the client's location and status:

For B2B Transactions: Typically, the reverse charge mechanism applies, which must be indicated on the invoice. The place of supply is determined by the customer's location. Ensure that the customer provides a valid VAT identification number.

For B2C Transactions: VAT is charged and paid by the supplier, with the rate determined by the customer's location. Therefore, if the customer is from Slovakia, the Slovak VAT rate of 20% applies.

Digital services, also known as electronically supplied services (ESS), are services delivered over the internet or an electronic network, such as:

Websites, web hosting

E-books

Software downloads

Music, films, games

Slovakia also has an extensive network of double tax treaties with over 60 countries. These treaties can reduce or eliminate withholding taxes on dividends, interest, and royalties, and help avoid double taxation.

 

 

Digital Reporting

Slovakia currently has some digital reporting requirements, with plans to expand them in the near future:

Mandatory digital reports of VAT returns and payments

The upcoming e-invoicing approach, which will introduce real-time reporting

Mandatory Extended Producer Responsibility (EPR) reporting, requiring companies placing packaging or non-packaging products on the Slovak market to report detailed data about material composition and the percentage of recycled materials used

 

VAT Registration and Thresholds

For domestically established businesses in Slovakia, the threshold is €49,790, with an option for voluntary registration.

For EU-based businesses engaged in distance selling of goods or services to Slovak consumers, the threshold is €10,000, with two options:

Non-EU businesses selling into Slovakia have no VAT registration threshold and must register immediately.

 

VAT Returns and Payments

Digital reporting of VAT returns is mandatory in Slovakia. Reports and payments must be submitted by the 25th day of the month following the tax period. Reporting frequency is based on your company’s annual income:

Monthly reporting is mandatory for businesses with a turnover exceeding €100,000 in the previous year.

Quarterly reporting is optional for companies that have been taxpayers for at least 12 months and have a turnover of less than €100,000.

Alongside the VAT return, a VAT control statement must be submitted, allowing authorities to cross-check transactions between suppliers and customers. This statement must include:

Invoice numbers

Dates of supply

VAT amounts

Counterparties' VAT numbers

 

 

Penalties

Non-compliance with non-monetary obligations may result in fines ranging from EUR 30 to EUR 3,000.

Failure to comply with VAT digital reporting requirements can lead to penalties between EUR 30 and EUR 3,000, depending on the type and severity of the violation. This includes late submissions, reporting inaccuracies, or failure to register for VAT when required.

A penalty ranging from EUR 30 to EUR 16,000 may be imposed for missing VAT return deadlines.

Failing to meet registration obligations within the required timeframe may result in fines between EUR 60 and EUR 20,000.

For delayed VAT payments, late payment interest is calculated as the higher amount between an annual rate of 15% or four times the ECB's interest rate.

 

 

Achieve Global Invoicing and Tax Compliance with Space Invoices

One way to comply with (e-)invoicing, tax, and reporting regulations in Slovakia is to use a provider like Space Invoices.

With Space Invoices, you will:

Use one API for current and future global tax and invoicing compliance, including Slovakia

Save time and money with integration that takes less than a week

Support and upsell your clients worldwide, including Slovakia

Ensure all documents are archived and successfully reported to the responsible institutions

Become a one-stop shop for current and future clients

Streamline processes and eliminate manual errors, saving time and money

Have questions about achieving compliance in Slovakia?

We are ready to help.

 

The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. The latest update was made on August 3, 2024.

 

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