The years-long discussion on the topic of electronic invoices (e-invoices), which will be directly connected to the Financial Administration in real-time, is now taking concrete shape in the form of a draft amendment to Act No. 222/2024 Coll. on Value Added Tax, as amended.
Most taxpayers and the professional community are interested in answers to the following questions on this topic:
What is it about?
The introduction of a new obligation for VAT payers to issue and receive invoices in a specified electronic (structured) format, i.e., mandatory electronic invoicing and the online reporting of data from these invoices to the Financial Administration.
Who does the obligation concern?
VAT payers as defined by the VAT Act (i.e., Sections 4, 4b, 4c, and 5).
To whom is the data reported?
To the Financial Administration (FA), via an electronic system connected directly to the FA.
What is reported?
Supplier - data on the supply of goods and provision of services
Customer - data for each taxable transaction
From when?
From 1.1.2027 - for domestic transactions
From 1.7.2030 - for cross-border transactions
Why?
- Implementation of EU Council Directives: Based on the adoption of the ViDA (VAT in the digital age) package at the EU level, which includes Council Directives (EU) 2025/516 and 2025/517. One part of the package is precisely Electronic Invoicing and digital reporting of data from e-invoices. The ViDA package requires Member States to implement e-invoicing for domestic and cross-border transactions and the reporting of transaction data by 1.7.2030.
- Fight against tax fraud
- Targeted tax audits
The implementation of e-invoicing and data reporting to the Financial Administration is a complex process. It will require preparation on the part of businesses in cooperation with suppliers of accounting and invoicing software, as well as preparation on the part of the Financial Administration, given the large volume of data that will be transmitted in real-time from businesses and the need for its storage and processing.
As this is still only a draft amendment to the Act and its practical implementation is not yet clear, and with intensive discussions ongoing among legislators, the professional community, software producers, and businesses, we will continue to monitor this issue. We will provide subsequent updates as new information becomes available.
Be the first to know about the latest information from the world of taxation, accounting and auditing.
