How is a foreign-currency invoice handled in e-invoice?
Short answer
Distinguish the document currency from the tax currency. The XML must contain the correct DocumentCurrencyCode and, where VAT must be expressed in euros, the corresponding tax-currency data. VAT conversion follows the VAT Act, particularly § 26, together with the entity’s applicable accounting rules; it is not an arbitrary conversion.
Currency of the document
Specifies the currency in which the main invoice amounts are expressed.
Tax currency
It is used if VAT needs to be expressed in a different currency.
VAT conversion
The exchange rate rules belong to the tax assessment.
Same logic
ERP, XML and visualization must fit together.
Conclusion
Keep the document currency, tax currency, exchange-rate basis, VAT calculation and rounding mutually consistent.
Sources
- Law no. 222/2004 Z. z. Coll. about VAT, tax and invoicing rules
- Peppol BIS Billing 3.0: DocumentCurrencyCode and TaxCurrencyCode
- Internal rule: the frontend does not invent rates or tax assessments
the VAT Act · current FAQ of the Financial Administration of the Slovak Republic on e-invoice · Peppol BIS Billing 3.0
Not legal advice.