How to Invoice in Slovakia - Step-by-Step Instructions
Get a detailed, step-by-step overview of how to invoice in Slovakia in this expats’ guide for entrepreneurs and freelancers.
Detailed instructions on how to invoice in Slovakia
How to correctly issue an invoice in Slovakia is a common question among beginning entrepreneurs and freelancers. Especially for those who don’t speak the language, navigating Slovakian invoice requirements and legal terminology can pose a challenge.
Yet, filling out a Slovakian invoice isn’t difficult at all. In fact, it’s even easier with Pexpat’s completely free Slovakian Invoice Generator. You just need to know what information to include to correctly issue your invoices.
Use this guide to get a better understanding of:
- Why and when to issue an invoice in Slovakia
- How to correctly issue an invoice
- What information to include in Slovakian invoices
- If you should invoice with or without VAT (Value Added Tax)
- How to issue invoices as a non-VAT payer
- Issuing VAT payer invoices
- Invoicing in a foreign currency
- Cooperating with VAT payers
- Invoicing EU-registered businesses outside of Slovakia
Follow along to ensure your template for Slovakian invoices adheres to all rules and requirements. Learn how to invoice correctly for anything from products to services, and according to supplier and customer status.
Why and when to issue an invoice in Slovakia
- The invoice is a request for payment for the customer from the supplier for services, goods, or performance delivered.
- An invoice is also an accounting document. It must state “who, when, to whom, what, and for how much” was provided.
- For the supplier, an invoice is the basis for declaring the receivable income from services, goods, or performance. This is for both accounting and tax registration purposes, such as in simplified SZČO records.
- The invoice for the customer amounts to their obligation with the supplier, or their accounting expenses and potential tax burden.
- In effect, the invoice serves as a receipt of delivery, and also can be the basis for any possible customer complaints.
- In regards to VAT payers, the invoice is a required document to prove a supply of goods or services. This data then goes into individual VAT statements and records.
Invoices and the VAT Act in Slovakia
In Slovakia, the VAT Act is the only law that exists for entrepreneurs regarding the term “invoice”. It states that business entities must issue an invoice if they are:
- Full-fledged VAT payers (Section 4 of the VAT Act), and especially in the case of selling goods and services to business entities;
- Businesses registered under Section 7 or Section 7a of the VAT Act - in situations where they supply another EU country or a third country;
- Non-registered VAT payers who must issue an invoice according to the VAT Act (such as entrepreneurs who supply countries outside of the EU).
Entrepreneurs, freelancers, and VAT payers may also invoice in situations when it is not necessary. One example is in sales to private individuals. But why?
- The invoice is an official account document according to the Accounting Act. This Act states that every entrepreneur must issue an invoice.
- For VAT payers, it can be simpler in most cases when 1 sale = 1 invoice. This invoicing process ensures a simplified accounting, and a lower error rate.
Invoice requirements according to supplier status
For both the VAT non-payer and the VAT payer, the invoice must:
- Designate the participants of the agreement
- Verbally and numerically identify the document (e.g. “Invoice 2023001”)
- Stipulate the amount of money for a product, service, or performance
- State the date of the invoice
- Record the date of the accounting event (the date of delivery)
For registered VAT payers in Slovakia, there are additional invoice requirements. However, let’s start first with how to do a non-VAT invoice.
Invoicing in Slovakia for non-VAT payers
Creating an invoice without VAT is less complicated than VAT invoicing. For one, those who meet the exemption requirements face fewer laws and rules regulating invoicing procedures. Also, there is less administration, less accounting, and less costs for the invoicer or invoicing entrepreneur.
We can thus simplify invoicing into 6 categories your Slovakian non-VAT invoice must fulfill.
1 - Invoice number
First, there is no specific format your invoice numbering should follow. However, note that each invoice number must be in consecutive order.
- For a basic example, your first invoice might be “001,” with “002,” “003,” and so on.
- For better accounting, you might also want to include the year along with the number of the invoice you’re issuing. You can include before the invoice number.
- Thus, your invoice numbering becomes “2023001,” followed by “2023002”, and so on.
Again, the only rule is that each invoice number must follow in consecutive order.
2 - Subscriber and supplier information
Next, fill in information on the supplier (you) and the subscriber (your customer).
- Include your IČO (company registration number), business name, business address, your bank details, and any payment terms.
- Describe the products or services in the invoice description.
- Record the rate, quantity, and total amount.
For example, you might invoice for “yoga classes,” for “English lessons,” or for “consultation services.” If it’s 10 hours at EUR 20 per hour of English lessons, an example invoice would specify:
- Description: English lessons
- Rate: EUR 20
- Quantity: 10
- Total Amount: EUR 200
3 - Date of issue, due date, and variable symbol
To further fulfill accounting requirements, invoices include the date of issue, due date, and variable symbol. The variable symbol serves as a reference number. Note:
- The date must correspond to the date you issue the invoice.
- Due date stipulates when you as the supplier expect to receive payment.
- The variable symbol is for your customer’s record-keeping, serving for example as a reference number.
4 - How to invoice in a foreign currency
It is possible to issue an invoice in Slovakia in any form of currency. However, if doing so, you must include the exchange rate of the foreign currency to EUR on the date of issue.
- To calculate the exchange rate, reference the National Bank of Slovakia on the day you issue the invoice.
- Further, you might also include the exchange rate within your invoice. Example: “Exchange rate of NBS on 01.01.2023: 1 EUR = X CZK.
5 - Invoicing EU-registered businesses outside of Slovakia
To invoice EU-registered business clients outside of Slovakia, you must issue an invoice according to VAT Act requirements. What this means is that EU reverse charges can apply.
However, you still invoice without VAT, and customers within the EU can likewise fulfill payment terms without VAT. You can include this information into your invoice, declaring the reverse charge for both the subscriber and Slovakia’s tax authorities.
In the invoice, it must be clear that the service or good exchange is under EU reverse VAT charges. For example, the invoice may include: “0% VAT EU Reverse Charge.”
6 - Cooperation with Slovakian VAT payers
When invoicing a Slovakian, registered VAT payer business, it is not mandatory to list your DIČ (Tax ID #). Yet, it can be extremely helpful for your customers.
By providing your DIČ, your customer will understand that they will not deduct any VAT from your invoice.
Also, note that as a supplier who is a non-VAT payer, you will always invoice without VAT. This remains the case even if your client is a registered VAT payer.
Invoice requirements for VAT payers
Now, how do you invoice as a VAT payer in Slovakia? First, let’s start with who has to register as a VAT payer. If you have a headquarters, permanent address, place of business, or VAT establishment, the threshold for VAT registration is an annual turnover exceeding EUR 49 970.
For non-resident companies, there is no threshold for VAT registration. However, non-resident companies must register as a VAT if they:
- Sell products or services subject to Slovakia VAT Law (with the exception of when declaration and payment of VAT is on the subscriber), or
- Supply products or services from within Slovakia to a customer in another EU member state.
It is also possible to voluntarily register as a VAT payer even if annual turnover does not meet the registration threshold. In this way, the supplier states they will provide taxable goods or VAT-exempt supplies with Slovakian credit.
When issuing a VAT invoice in Slovakia, the process is similar to invoices for non-VAT payers. There are a few additional fields you must fill in, however. Let’s look at an overview of the VAT invoice step-by-step below.
1 - Numbering VAT invoices
Numbering VAT invoices is the exact same process as that for non-VAT payers above:
- Create every invoice number in consecutive order, e.g. “001”, “002”, etc
- Consider adding the year for easier record-keeping, e.g. “2023001”, “2023002”, etc
2 - Information of supplier and subscriber
Next, fill in the accounting information for the supplier and subscriber just as you would on a non-VAT invoice. Fill in IČO (Company Registration Number), business name, business address, supplier bank details, and payment terms.
Then, to fulfill the accounting requirements of the VAT payer, include your DIČ (Tax ID Number) and IČ DPH (VAT registration number). These are both mandatory requirements for VAT invoices. The tax ID number you will also use for all tax reporting, the most common being for income tax.
You will use your IČ DPH in all filings connected to VAT reporting, such as VAT control statements. It’s mandatory this VAT number is on all invoices. If the IČ DPH is missing, financial authorities will not accept the invoice during tax control. This is because it is not clear who is responsible for declaring taxes.
3 - Slovakian VAT invoice descriptions
There is only one difference in invoice descriptions for VAT payers versus VAT non-payers. On top of rate, quantity, and total amount, the VAT payer must also include VAT and the VAT rate in the invoice description.
For example, say you are invoicing a client for EUR 8 000. The invoice description might look as follows.
- Description: Website Development
- Rate: EUR 8 000
- Quantity: 1
- VAT Amount: EUR 1 680 (21% is the most common VAT rate for services in SK)
- Total Amount: EUR 9 680
4 - Issue date, due date, and variable symbol
Filling in the issue date, due date, and variable symbol on an invoice is the same for VAT payers. Just remember:
- The due date is the latest date you expect payment from the customer.
- The variable symbol is for client record-keeping, serving as a reference number.
- Variable symbols can be for example the invoice number.
5 - Invoicing with a foreign currency as a VAT payer
Just as with non-VAT invoices, VAT payers have the right to invoice in any currency. This as long as they report the exchange rate from the foreign currency to EUR on the date of issuance.
Thus, always reference the National Bank of Slovakia to calculate exchange rates, and include these on your invoice.
- Example: “Exchange Rate of the NBS on Date: X CZK = 1 EUR.”
6 - Invoicing EU-registered businesses from Slovakia
If you are a registered VAT payer, you will always invoice with VAT. Invoicing with VAT is mandatory even if your customer is a VAT non-payer, or if invoicing a natural person.
If supplying an EU-registered business outside of the EU, remember that EU reverse charge rules can apply. These rules grant you the right to invoice without VAT, and for EU customers to make payments exempt from VAT.
Your invoice should also clearly state this both for the customer and the Slovakia tax offices. It must note that the reverse charge is part of the cooperation, and include information about the agreement. Include this in a paragraph in a note at the bottom of the invoice.
It is also mandatory that you list your DIČ (Tax ID Number) on every invoice. This informs the tax authorities as well as the customer that no VAT was deducted from the invoice.
Tools for accurate, simple, and hassle-free accounting
Explore Pexpats’ free tools for freelancers and entrepreneurs in Slovakia to make all of your accounting and invoicing simpler. All of our solutions, from tax and employment calculators to document and invoice generators are completely free to use. We’ve designed each to save you both time and effort, with user accounts for automated and exact record-keeping. Simply start generating invoices today, or start a user account for long-term, worry-free invoicing & accounting.
Did you like this article?
😒
🙂
😍
Made with ❤️ in Prague for Bratislava.
Powered by
