The Electronic Invoicing Information System is a national project in Slovakia to expand electronic invoicing in the country. Currently, only public administrations and their suppliers above EUR 5,000 are obliged to use e-invoicing, and private companies use it on a voluntary basis.
Although the exact details, key dates and deadlines have not yet been set, the draft law was published in January 2021, and it seems that Slovakia could have the new legal framework for extended e-invoicing ready this year.
Objective of the Electronic Invoicing Information System
The introduction of the Electronic Invoicing Information System was triggered by the obligation to transpose and implement Directive 2014/55/EU of the European Parliament and of the Council of 16 April 2014 on electronic invoicing in public procurement. At the same time, it reflects the requirement included in the Slovak Government Programme Statement for 2020-2024, in which the Government of Slovakia undertakes to improve the transparency of financial flows by enhancing electronic invoicing.
The main objective of the Electronic Invoicing Information System is to establish a framework allowing the creation, sending and receipt of electronic invoices for their subsequent automated processing in transactions of entities participating in public procurement and in accordance with EU and Slovak legislation. The mandatory issue and receipt of qualified electronic invoices concerns the following sectors:
- B2G (Business to Government), where B stands for businesses (suppliers/providers), and G stands for public contracting authorities / contracting authorities participating in public procurement relationships / state budget funded and co-funded organisations (customers);
- G2G (Government to Government), where both Gs represent state entities (public contracting authorities, contracting authorities participating in public procurement relationships, state budget funded and co-funded organisations).
Timing and stages
A current-state analysis has shown that the European Directive was transposed into Slovak national legislation in Law no. 215/2019, but it has not yet been implemented. The target dates set out for the implementation, which should ensure that public procurement contracting authorities and contracting authorities receive and process electronic invoices, have not been observed by the Slovak Republic. The last such date passed on 18 April 2020. At present, the implementation of the Electronic Invoicing Information System is divided into several stages, and the completion is planned for 2022.
The draft act presented will affect all suppliers / providers and subcontractors of state entities who receive and issue invoices. During the transitional period it is voluntary for contractors to receive and issue electronic invoices through the Electronic Invoicing Information System. This will become mandatory after the implementation is completed. The Slovak Government Programme Statement for 2020-2024 includes a requirement to create a framework for e-invoicing processes in the B2B environment too with a view to combating tax fraud. Therefore electronic invoicing should expand in the B2B (Business to Business), B2C (Business to Customer) and G2C (Government to Customer) areas as well.
If you want to know more about the details surrounding the introduction of the Slovak Electronic Invoicing Information System, we recommend you visit the website of Mandat Consulting, k.s. and contact the local WTS experts in Slovakia.