Government proposes VAT increase from 20% to 23% 2025; new 19% reduced rate
Source
Other changes in Slovakia per Jan 1, 2025
The National Council of the Slovak Republic has approved a bill that introduces amendments to the VAT Act and other related acts. The changes will be implemented gradually, with most provisions taking effect from January 1, 2025.
One of the key changes is the threshold for VAT registration for domestic taxable persons. Currently, a taxable person becomes a VAT payer if their turnover exceeds €49,790 in the previous 12 consecutive months. Under the new amendment, a taxable person will become a VAT payer if their turnover reaches €50,000 in the current calendar year. Additionally, a new turnover amount of €62,500 is introduced, and if exceeded, the taxable person will become a VAT payer immediately.
Providers of exempt financial and insurance services and real estate rental services will now be required to register for VAT, although they will not have to file VAT returns and control statements unless they engage in other activities subject to VAT.
The amendment also addresses the VAT registration of foreign taxable persons. A foreign taxable person without a seat or fixed establishment in Slovakia will become a VAT payer when carrying out taxable transactions subject to VAT in Slovakia. However, small enterprises with fixed establishments in the EU and allocated a VAT ID with the suffix “EX” for Slovakia will have the option not to become VAT payers.
Other changes include the treatment of finance leases, the deduction of input VAT based on documents other than invoices, late VAT registration penalties, invoicing requirements, special schemes for small enterprises, and the reverse charge when importing goods.
These amendments aim to streamline VAT procedures, improve control, and ensure compliance with EU directives.
Source PwC
