Planned Slovak VAT innovations

Changes to VAT rates

The bill increases the standard VAT rate from the current 20% to 23%. Some food, medicines, and textbooks will be moved from the 10% rate to a newly created 5% rate. For other food and electricity, a 19% rate will now apply. The change will also affect books, which are to be moved from the 10% rate to the basic 23% rate.

Claiming VAT deduction based on a document other than an invoice

Currently, Slovak VAT payers can only claim VAT deduction on the purchase of goods from another EU member state if they have an invoice from the supplier.

The amendment to the VAT Act introduces the possibility to claim VAT deduction even if the VAT payer does not have an invoice, as long as they are able to prove their right to deduct VAT with another credible document proving the actual purchase of goods and the amount of tax liability.

VAT registration

The amendment changes the period for which turnover is calculated, and the amount of the turnover. From 2025, the relevant period will be the calendar year, not 12 consecutive months as has been the case so far. If the turnover exceeds EUR 50,000 during a calendar year, the company will become a VAT payer from 1 January of the following calendar year. If the turnover exceeds EUR 62,500, the company will become a VAT payer from the moment the turnover is exceeded. The deadline for filing for VAT registration has been reduced to 5 days, e.g., if the turnover exceeds EUR 50,000 during April, the VAT registration will have to be filed by 5 May. There will also be a change for companies not established in Slovakia: they will have to register for VAT only after a taxable supply with a place of supply in Slovakia has taken place. The deadline of five days applies to them as well.

 
The amendment will also bring the following changes:

• clarification of the concept of ‘investment property’ (reduction of the value for movable assets)
• abolition of the possibility to claim VAT deduction on the purchase of fuel up to the amount of expenses determined as percentage of income (under the Income Tax Act)
• introduction of a special regime for small businesses
• reducing the limit within which a simplified tax document can be issued (from EUR 1,000 to EUR 400) 
• broadening the range of situations where an obligation to correct or adjust VAT deduction already claimed arises
• regulating the situation where the last day of the deadline falls on a Saturday, Sunday, or public holiday - the last day of the deadline shall be that day.

We will continue to monitor developments at our neighbours and will keep you informed of any new legislation.