About the beginning of the application of electronic VAT registration for private sector entities

The Law on Electronic Invoicing introduced the obligation of electronic invoicing and the special obligation of electronic recording of VAT calculations for both public sector entities and private sector entities. Public sector entities were obliged to harmonize their operations with the aforementioned obligation no later than 1 May 2022, while private sector entities are subject to this obligation from 1 January 2023.

Bearing in mind that transactions involving a public sector entity on the one hand and a private sector entity on the other are not rare, we point out that there is no set deadline from which there is an obligation to electronically record VAT calculations by the private sector entity in transactions in which the other foreign public sector entity.

In view of the above, in the absence of a different legal wording, the obligation of private sector subjects of electronic registration before January 1, 2023 is not established in the above transactions, despite the fact that on the other side there is a public sector subject for whom such an obligation exists.

This position was expressed by the Minister of Finance in the Explanation which can be found at the following link.