E-invoicing starting January 1, 2027: It’s not just about invoices, but about changing processes
Starting January 1, 2027, e-invoicing is set to become a mandatory part of the business environment. In the EMINEO PARTNERS podcast, Marcel Muráni and Martin Roško (ETL SLOVAKIA) explain that this will not merely be a new technical format, but a fundamental change in how companies will receive and issue invoices, how they will handle data, and how quickly the Financial Administration will be able to respond.
An e-invoice will be more than just a PDF in an email
An e-invoice is not simply an ordinary invoice sent electronically. It will be a structured data file, typically in XML format, in which individual data points are stored in a precisely defined structure. This is the main difference from current practice, where companies primarily work with PDF invoices, emails, and manual document processing.
Who will be affected by the new requirement
The new regime is intended to apply to B2B and B2G transactions, i.e., transactions between businesses and between businesses and public authorities. Standard invoicing to consumers is not expected to fall under this regime. It is important to note, however, that taxable persons need not be limited to companies in the traditional sense of the word. In practice, there may also be situations where the obligation applies to individuals who, for example, rent out an apartment or engage in other activities that do not outwardly appear to be typical business operations.
The biggest change will be in terms of time and data volume
With e-invoicing, it won’t just be a matter of the government receiving more data. It will also receive it much sooner. A copy of the data from the issued invoice will be forwarded to the Financial Administration via a designated intermediary in near real time. This means that information which currently reaches the government with a delay via reports will now be available within seconds. At the same time, this will not only include basic identification data, but also more detailed billing information, including line items and descriptions.
Companies will need to be able not only to issue invoices but also to receive them
One of the most important practical changes will be the readiness to receive e-invoices. While invoices can be issued from multiple locations or systems, their receipt must be linked to a single designated location or a single responsible party. For this reason, it will be important to establish in advance where e-invoices are sent, who is responsible for receiving them, and how they will subsequently be integrated into the company’s internal processes. Failure to prepare for this could result in penalties, as the inability to accept an invoice may trigger fines of up to 10,000 euros.
Technology alone will not be enough
The decentralized model assumes that the transmission of e-invoices will be handled by private intermediaries and that communication will be based on the PEPPOL standard. However, technological readiness alone will not be decisive. Companies will also need to set up internal workflows, document approval processes, and checks to verify the validity of received invoices. This will be important because not every received e-invoice automatically enters the accounting system or VAT records without further processing.
There will also be greater emphasis on the accuracy of texts and documentation
The new system will place higher demands on the accuracy of the information companies include on their invoices. Once an invoice is sent and enters the system, correcting it will not be a simple matter of rewriting it. In practice, corrections will have to be handled through credit notes and amended tax documents. At the same time, greater emphasis is expected to be placed on the quality of contracts, delivery notes, performance confirmations, and other supporting documentation. Precisely what is often still “resolved later” today will need to be prepared more accurately and sooner under the new system.
The relationship between business owners and accountants will also change
The previous model was often straightforward: an invoice would arrive at the business owner’s office, and they would then forward it for bookkeeping. Under the new system, invoice information may be available in the system before the business owner even sees it. This changes the sequence of steps and responsibilities. Consequently, the focus shifts to document approval, setting up control mechanisms, and customizing workflows based on client type and transaction type.
Consultation
E-invoicing can shift accounting toward consulting
One of the most significant consequences will be a change in the nature of an accountant’s work. As some of the routine data entry and manual processing of documents is eliminated, greater emphasis can be placed on verifying the economic rationale behind transactions, ensuring correct tax assessments, ensuring the quality of documentation, and utilizing data for business management. E-invoicing thus need not merely represent a new obligation, but also an opportunity for higher-quality consulting and better decision-making based on up-to-date data.
Archiving will also be important
The new system also entails a retention requirement. Data and related records of e-invoice delivery will need to be archived for 10 years. At the same time, it is noted that the intermediary itself is not required to retain this data to the same extent as a business entity; therefore, it would not be prudent to rely solely on external storage or on the assumption that everything will remain accessible outside of one’s own systems.
Conclusion
Starting January 1, 2027, e-invoicing will be more than just a technical change in billing. It will change the flow of information, the speed of verification, internal processes, and expectations regarding accounting and tax consulting. Companies that start addressing systems, receiving points, workflows, and documentation early on will be in a significantly better position than those that put off this change until the last minute.
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