- Objective and Submission:
- The Slovak Government submitted an amendment to Act No. 222/2004 Coll. on Value Added Tax to the National Council on 4 October 2024, aiming to combat tax evasion and close legislative loopholes.
- Correction of Deducted Tax:
- The amendment extends cases where the obligation or right to correct deducted tax will apply, ensuring more accurate VAT deductions.
- Capital Goods and Fixed Assets:
- The definition of “capital goods” is clarified to include only fixed assets, not inventories, affecting proportional VAT deductions. The concept of “fixed assets” now also includes intangible fixed assets.
- Primary Use Concept:
- A new “primary use” concept is introduced, marking the first actual use of goods and services by a taxpayer, which will determine the start of the period for adjusting VAT deductions.
- Tax Base Definition Change:
- The tax base for free-of-charge supply of goods will now be based on the purchase price or creation cost at the time of delivery. The amendment is set to take effect on 1 January 2025, with some provisions effective from 30 June 2025 and 1 July 2025.
Source TPA-group
