The Slovak parliament has rejected legislation that would have raised VAT registration thresholds from EUR 50,000 to EUR 83,000, maintaining the current requirements for small businesses despite efforts to reduce their administrative burden.
The Slovak Republic’s National Council voted down proposed changes to VAT registration requirements on 7 May 2026, ending plans to raise turnover thresholds for small businesses.
This follows the consideration by the Slovak Republic parliament of draft legislation proposing significant changes to VAT registration requirements from 1 July 2026, including higher turnover thresholds intended to reduce the compliance burden on small businesses.
Proposed changes
The failed legislation would have increased VAT registration thresholds effective 1 July 2026. The existing EUR 50,000 threshold that triggers mandatory registration from 1 January of the subsequent year would have risen to EUR 83,000. Similarly, the EUR 62,500 threshold for immediate registration would also have been replaced by the higher EUR 83,000 limit.
Impact on small businesses
Had the bill passed, numerous small enterprises operating near the previous thresholds would have gained relief from VAT registration obligations. The increased threshold would have allowed businesses with an annual turnover below EUR 83,000 to avoid the administrative burden of VAT compliance.
The rejected proposal also included provisions for existing VAT-registered businesses to apply for deregistration if their turnover remained below EUR 83,000 for 12 consecutive months. Upon approval, companies would have been required to return their VAT registration certificates within ten days, though they would forfeit VAT deduction rights in their final taxable period, except for asset-related claims.
