The Slovak Republic published Law of 24 April 2024 on Amendments to the VAT Law in the Official Gazette on Friday, 17 May, 2024.

The law outlines implementing a new VAT scheme for small businesses under Council Directive (EU) 2020/285 of 18 February 2020.

The regulations will take effect starting 1 January, 2025.

Provisions of the law: 

  • The law establishes a new VAT registration threshold and stipulates that taxpayers will be considered taxable persons for VAT purposes from 1 January of a given calendar if their turnover from supplying goods and services in the previous year exceeds EUR 50,000. Additionally, a new threshold has been introduced for the current year stipulating that taxpayers become liable for VAT if their turnover from supplying goods and services exceeds EUR 62,500.
  • Regarding the current year threshold, a small business becomes liable for taxes once its supply of goods or services surpasses the relevant threshold.
  • Taxpayers must submit a registration application within five working days starting from the date they have exceeded the relevant threshold or meet the conditions of these specified cases.
  • Taxpayers may voluntarily register for VAT if their turnover exceeds EUR 50,000 in the current year. Conversely, they can request the cancellation of their tax registration if their turnover did not exceed EUR 50,000 in the previous year.
  • Requests for registration cancellation can only be made at least one calendar year after the taxpayer has been classified as a taxable person.
  • The EUR 50,000 and EUR 62,500 thresholds remain relevant under the new VAT scheme for small businesses.
  • A small business from another EU Member State may be exempt from VAT in the Slovak Republic if its annual turnover in the EU does not exceed EUR 100,000, and its total turnover in the Slovak Republic does not surpass EUR 62,500 in the current year and EUR 50,000 in the previous year.
  • A small business in another EU Member State will not qualify for VAT exemption starting 1 January of the year following the one in which its turnover in the Slovak Republic exceeded EUR 50,000. This also applies if the turnover surpasses EUR 62,000 in the Slovak Republic or EUR 100,000 within the EU in the current year.
  • Regulations are introduced to allow small businesses to apply for VAT exemption in other EU Member States.
  • A foreign entity without a registered office or establishment in the Slovak Republic becomes liable for VAT when supplying taxable goods or services within the Slovak Republic, with no registration threshold, unless it qualifies for the small business exemption.
  • Such entities must submit a registration application within five working days of becoming liable for VAT. However, they will not be considered taxable in scenarios such as supplying tax-exempt goods and services.