Invoicing for builders — construction firms and sole traders
Construction firms and sole traders in construction have the most Slovak VAT specifics of any industry. Between VAT payers, mandatory reverse charge under § 69(12)(a) of the VAT Act applies — regardless of invoice value. On top come advance payments on longer projects, settlement invoices on completion, B2C orders from individuals at the standard VAT rate, and metal scrap under § 69(12)(f). This guide shows how to invoice correctly in each case and how to avoid the most common mistakes flagged by the Financial Administration.
What you wrestle with daily.
Four concrete problems almost everyone in this industry hits. You'll find a fix for each below — or the full set in the 1FAKTURA cloud product.
01
Reverse charge between every builder
Construction work between VAT payers always shifts VAT to the customer — § 69(12)(a). An invoice mistakenly issued with 23% VAT = sanction risk for both sides.
02
Advances + settlement invoices
On €50K+ builds, work runs with 30–50% advances before kick-off and settlement invoices on completion. These are two separate tax documents — losing one = a year-end close problem.
03
Long payment terms from developers
Sub-contractor relationships in construction often run 60–90 day terms — by the time you're paid you're already two months into the next project. Without automatic reminders it's easy to forget a receivable.
04
Consumer vs B2B VAT-payer customer
Renovating a flat for a consumer is B2C with the standard 23% VAT. The same work for a construction firm is reverse charge at 0%. Same workflow, opposite invoicing — a common source of errors.
Which VAT regime applies.
Reference: § 69(12)(a) and (f) of Slovak VAT Act 222/2004 Coll.
Full statute: slov-lex.sk.
For builders, § 69(12) of Slovak VAT Act 222/2004 Coll. applies — especially (a) construction works and supplies of goods with installation. Between Slovak VAT payers, mandatory reverse charge applies — the invoice carries 0% VAT, the supplier charges no tax, and the customer records it in their own return (input and output VAT). The invoice text must explicitly state: "Reverse charge — § 69(12)(a) of the VAT Act." This applies regardless of invoice value — RC is mandatory even on a €100 job. Exceptions: sale of metal scrap and semi-finished metal goods falls under § 69(12)(f) (also RC). A sale to an individual (B2C) always carries the standard 23% VAT — reverse charge never applies between a VAT payer and a consumer. For cross-border B2B in the EU, the place of supply follows § 16 of the VAT Act (typically where the building is located) — for work in Czechia, invoice under Czech rules.
Office renovation for a B2B client
Reverse charge between VAT payers — 0% VAT with § 69/12/a notice.
| Item | Qty | Price | VAT | Total |
|---|---|---|---|---|
| Demolition and site clearance | 1 m² | €12.00 | 0 % | €12.00 |
| Plasterboard partitions including insulation | 1 m² | €45.00 | 0 % | €45.00 |
| Painting, 2 coats + final filling | 1 m² | €8.00 | 0 % | €8.00 |
| Electrical install — new wiring + sockets | 1 package | €1,200.00 | 0 % | €1,200.00 |
| Net subtotal | €1,265.00 | |||
| VAT total | €0.00 | |||
| Amount due | €1,265.00 | |||
This is an indicative example. The actual line items and totals depend on the specific engagement and supply type.
Built for your industry.
For an instant start, try the free generator — no signup, no waiting for confirmation emails.
Open the generator →1FAKTURA for builders solves three concrete workflow issues. First: the "reverse-charge invoice" type is native — pick it from a dropdown, the § 69/12/a notice is added automatically, and the VAT rate snaps to 0%. Second: advance and settlement invoices are linked — issue the advance on payment receipt, the settlement on completion, and the generator deducts the advance automatically. Third: 90-day payment terms with automatic reminders — we'll nudge the customer on day 60, 75, and 89 for you. Plus UBL 2.1 XML for 2027 and 10-year archive per § 76 of the VAT Act. For an instant ad-hoc test, use our free reverse-charge checker, which tells you for a given case whether and which § applies.
Which 1FAKTURA plan to pick.
For a solo builder with 5–15 invoices a month, Plan Start (€0 forever) is enough. For smaller construction firms (2–5 employees) with 20–50 invoices a month we recommend Plan Lite — adding recurring invoices and Pohoda / Money S3 exports for the accountant. For larger firms with 100+ invoices a month and an in-house accounting team, Plan Pro with REST API integration to your ERP is the right fit.
Frequently asked
about invoicing in this industry.
Something missing? Email us — we answer within 4 hours on a business day.
info@1faktura.skDo I have to put § 69/12/a on every invoice to a B2B construction firm?+
What's the VAT on renovating a flat for a consumer?+
How do I issue an advance invoice for a 30% deposit?+
Selling metal scrap — when is reverse charge?+
Construction work in Czechia for a Czech firm — do I invoice with SK or CZ VAT?+
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