Ready or Not? E-invoicing Is Coming
In recent years, e-invoicing has become a major topic across Europe, including Slovakia. While many businesses still see it as another administrative requirement, governments and tax authorities have a different goal: reducing tax fraud and improving tax compliance.
At the same time, the European Union is promoting greater digitalisation and standardisation of business processes. The aim is not only to improve tax collection but also to make business across the EU easier and more efficient. A common approach to invoicing and reporting can reduce the administrative burden, simplify cross-border transactions and support economic growth.
Slovakia has been preparing to introduce e-invoicing for several years. The technical framework is now finally defined, giving businesses a clearer picture of what lies ahead. Importantly, the Slovak standards are expected to align with the future EU requirements for cross-border transactions, scheduled to apply from July 2030.
This approach could give Slovak businesses an advantage. Several EU countries have developed their own e-invoicing and e-reporting systems, which may require further changes as European rules evolve, while Slovakia’s solution is based on internationally accepted standards and the Peppol network. This should help businesses prepare for future EU requirements from the outset.
“Unlike many other European countries, including some of Slovakia’s neighbours, Slovakia is introducing both e-invoicing and e-reporting obligations. While many countries focus on one of these requirements, Slovak businesses will need to handle both: sending invoices electronically to business customers (e-invoicing) and reporting invoice data digitally to the tax authorities (e reporting),” explains Ivana Dvořáková, Director, Deloitte Slovakia.
“One of the biggest misconceptions is that e-invoicing simply means introducing a new invoice format. In reality, it fundamentally transforms the entire invoicing lifecycle, including how invoices are issued, transmitted, received and processed. Traditional invoices will no longer be sufficient. Companies will need to rethink their technology, business processes, controls and internal workflows,” adds Martin Hricko, Senior Manager, Deloitte Slovakia.
The invoice itself will also change significantly. Under the current VAT framework, legislation explicitly defines the information that an invoice must contain. Under the new e-invoicing framework, however, it refers to compliance with European standard EN 16931 rather than listing all required data elements directly.
“As a result, businesses will need to collect, maintain and exchange more structured information than today. Compliant electronic invoices will contain more mandatory data fields, increasing the importance of data quality, system readiness and process consistency across the organisation,” adds Ivana Dvořáková.
For many companies, the real challenge will not be generating an electronic document but ensuring that all required information is available, accurate and captured in a structured format at the start of the transaction process.
“The closer businesses get to implementation, the more they realise that e-invoicing is not primarily a technology project. It raises a wide range of operational and commercial questions, from handling credit notes and invoice adjustments to managing employee expenses and dealing with business partners not yet ready for electronic invoicing. The challenge is no longer understanding the legal framework but translating it into practical processes that work across the organisation,” adds Martin Hricko.
Meanwhile, e-reporting is expected to improve data quality significantly. Near-real-time transaction data will give the Slovak tax authorities a more comprehensive and up-to-date overview of business activities. The VAT Transactions Statement is also expected to remain in place for at least the next three years. The tax authorities will therefore receive information on domestic transactions from both sources. This dual-reporting environment will allow them to cross-check and reconcile the submitted data more effectively, helping to identify discrepancies and potential compliance risks.
Although these changes may initially seem challenging, they can also create opportunities. Businesses can use the transition to improve data quality, simplify invoice approvals and automate manual tasks. Faster invoice processing can help improve cash flow, while greater automation can provide better visibility of invoices and make their management more efficient.
This is why businesses should start preparing now. The deadline is approaching and waiting until the last minute could make the transition more difficult and costly. Preparation should involve several departments, including finance, tax and IT. Companies should review their processes, improve data quality and choose solutions that will support not only current requirements but also future developments.
E-invoicing and e-reporting are unlikely to be a temporary trend. Electronic invoicing and digital reporting requirements are expected to expand across Europe in the coming years. The better prepared a company is today, the easier it will be to adapt to future changes.
Ivana Dvořáková, Director, Deloitte Slovakia
Martin Hricko, Senior Manager, Deloitte Slovakia
