- Implementation of EU Directive: Slovakia is required to transpose the EU Directive 2020/285 into national law by January 1, 2025, introducing special VAT arrangements for small businesses to reduce administrative burdens and compliance costs.
- New VAT Exemptions: Two new special VAT exemptions are introduced for small businesses: one for foreign entities operating in Slovakia and another for Slovak entities operating in other EU member states, allowing them to sell goods and services without VAT under certain conditions.
- Conditions and Compliance: Small businesses must meet specific turnover thresholds and formal requirements to qualify for these exemptions. They must also submit quarterly reports and may lose the right to deduct VAT on purchases used for exempt supplies. The scheme is voluntary, and businesses can choose to apply standard VAT rules instead.
Source financnasprava.sk
