- VAT rate increase in Slovakia starting from January 1, 2025
- Changes are part of a consolidation package due to worsening public finance conditions assessed by the European Union
- The goal is to reduce the public deficit to 4.7% of GDP in 2025 from a forecast of 6% in 2024
- Slovakian Prime Minister announced the consolidation package valued at approximately 2.6 billion euros
- Changes include not only the basic VAT rate but also other rates
- If you sell goods or services in Slovakia or plan to start a business there, reading the article is advised
- Other related articles include VAT rate changes in Finland and obligations for construction companies in Spain
- The standard VAT rate will increase from 20% to 23%
- Tax on essential food and medicines will be reduced from 10% to 5%
- New VAT rate of 19% for energy and other food items
- Accommodation, catering services, and books will move from a reduced rate of 10% to the new standard rate of 23%
- Corporate tax will be raised from 21% to 22%
- Introduction of a financial transaction tax for corporations
- Approval of a tax on sweetened non-alcoholic beverages and an increase in tobacco excise
- Companies based in Slovakia will enjoy a reduced income tax from 15% to 10%
- Withholding tax will decrease from 10% to 7%
- Changes also include reclassification of products and services under reduced VAT rates
- Free consultations available regarding VAT in Slovakia
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
