The Ministry of Finance of the Slovak Republic has launched a consultation process on new legislation that should introduce the obligation to prepare an e-invoice for all business entities. The aim is to report selected invoice data for each business transaction within specified deadline to the Financial Administration before the final version of the invoice is issued. The reporting should be possible in two ways: through the entrepreneur’s ERP system (accounting software) or free state-certified communication component. The same reporting obligations should apply to customers.
The new legislation should ensure that information is obtained by the Financial Administration in real time that could help combat tax fraud and tax evasion. The current version of VAT Control report is no longer considered as a sufficient tool and could be abandoned upon the introduction of e-invoice. The Ministry of Finance believes that this measure could simplify the preparation of tax returns; however, it is questionable whether the new legislation will reduce the administrative and financial burden on entrepreneurs.
