5 common accounting record mistakes by sole traders in Slovakia

When a sole trader in Slovakia works without an accountant, it can feel as though everything is under control: invoices are issued, payments arrive and the tax return somehow gets filed. Many mistakes, however, are not immediately visible. They accumulate quietly and may only surface during an inspection, VAT registration or work with a new client.

It is therefore worth reviewing your sole-trader records from time to time, even if you do not keep double-entry accounts with a specialist. For example, when did you last check your taxpayer file (spis subjektu) on the Slovak Financial Administration portal?

Based on our experience from the Accquix Health Check, we have compiled five mistakes that we most often see among sole traders.

Short answer: problems usually do not arise from one major error but from the absence of a consistent record-keeping system—incorrect invoices, missed Section 7a registration or recapitulative statements, unreviewed non-EU transactions, and the incorrect treatment of platforms such as Stripe or Upwork.

1. Missing records

The most common mistake is the complete absence of systematic records.

A frequent response is: “I claim flat-rate expenses, so I do not need to keep any records.” Record-keeping obligations do not disappear entirely when flat-rate expenses are used. A sole trader must maintain, in particular, records of:

• income in chronological order;
• inventory and receivables;
• documents and payments received that are needed to substantiate income.

This does not need to be a complex accounting system, but basic order is essential. The obligations associated with flat-rate expenses are governed mainly by Section 6(10) and (11) of the Slovak Income Tax Act.

2. Incorrect invoices

The second common problem is issuing incorrect or incomplete invoices.

We often see invoices created manually from templates or through foreign services that do not reflect Slovak requirements—for example, the Slovak tax number (DIČ), VAT number (IČ DPH), correct dates or wording for EU transactions.

You can issue invoices yourself and do not have to use Slovak software. The document must, however, contain all details required for the particular transaction.

A missing date of supply can be a problem, especially for VAT and cross-border transactions. Even where an invoice is not mandatory under the VAT Act, it often remains an important document explaining the transaction. Any obligations connected with the Slovak eKasa system should also be reviewed separately.

3. EU transactions without the full picture

Customers and suppliers from the European Union are a major area of risk.

One of two situations often occurs: registration is required but the business is not registered, or it is registered but does not file the required reports. Missing reports can result in penalties. Failure to submit a recapitulative statement (súhrnný výkaz) may lead to a fine ranging from €100 to €10,000.

The issue is not limited to registration under Section 7a. The business also needs the correct setup for:

• invoicing;
• determining the place of supply;
• filing reports;
• keeping separate records for transactions connected with Section 7a.

It is usually this overall system that is incomplete.

If you supply services to business customers in other EU member states, review the reverse-charge and place-of-supply rules in particular.

4. Transactions with non-EU countries

If you buy services from a business in Ukraine or another non-EU country, you may be required to self-assess and pay 23% Slovak VAT.

In some cases, this obligation arises even without standard VAT registration or registration under Section 7a. If such transactions go unnoticed for years, unpaid tax can become a serious problem. For services from suppliers outside the EU, always review the place of supply and the person liable to pay the tax.

You should also determine whether the payment is subject to withholding tax. If it is, review the relevant double-taxation treaty and retain the documents supporting the treatment used.

5. Platforms, Stripe and digital services

Payment platforms can look simple: connect Stripe, receive payments and carry on. Their tax and accounting logic may be considerably more complex.

Common omissions include:

• VAT on the platform fee;
• correct recording of payments, fees, payouts and refunds;
• VAT on B2C sales of digital services or online courses.

When sales are made through platforms, monitoring only the amount that reaches the bank account is not enough. You need to understand and document the entire transaction structure.

For Stripe, marketplaces and digital products, review both the accounting treatment of the payment flow and the B2C rules for digital services.

What you can do

This does not mean that every sole trader has already made a mistake or is about to face a tax inspection. Problems can, however, accumulate when you do not know they exist.

If an inspection arrives several years later, or you decide to register for VAT, old inaccuracies can become expensive. A calmer approach is to review the situation with a specialist early, understand the risks and correct shortcomings proactively.

That is what the Accquix Health Check is for: even without an ongoing relationship with an accountant, you can verify whether your sole-trader records are in order.

Review your records with the Accquix Health Check

This article is for information only and does not replace individual tax advice.