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Slovakia has been part of the European Union VAT regime since 2004, and is part of the EU single market economy. VAT, or DPH, was first introduced in March 1993. VAT Directives, issued by the EU, lay out the principles of the VAT regime to be implemented by each member country. These Directives take precedent over the Slovak legislation where there may be conflict.
Click here for free guidance on Slovak Republic VAT compliance - including fiscal representation
slovak VAT Law
Slovakian VAT is overseen by the local tax offices and centrally by the Slovak Tax Directive.
slovak republic VAT Registration
Foreign companies from inside or outside the EU may register for VAT in Slovakia without the requirement to incorporate a Slovak company or form a permanent establishment – known as non-resident VAT trading. There is no VAT threshold in the Slovak Republic for non-resident traders – a VAT number must be in place before the commencement of taxable supplies. There is some limited flexibility for reclaiming Slovak VAT incurred prior to the registration, but potential fines may be high.
There are strict rules on the situations where a registration is permitted. Common scenarios which require a Slovak VAT registration include:
- Importing goods into the Slovak Republic;
- Organising live events, conferences etc in the Slovak Republic;
- Selling goods from the Slovak Republic to other EU countries; and
- Distance selling to private individuals living within the Slovak Republic, e.g. internet sales.
Registering for Slovak VAT generally takes 4 weeks, although this can vary.
Click here for free guidance on Slovak VAT registration
Slovak VAT Compliance
There are detailed rules controlling the recording and processing of Slovak transactions. These include guidelines on:
- Invoice requirements, including electronic invoices;
- Foreign currency reporting, rates and translation;
- Correcting errors from previous returns;
- Credit notes and corrections; and
- What accounting records must be maintained.
In the Slovak Republic, there are strict rules on the layout and format of VAT records to be kept by companies or their tax agents.
Slovak VAT Rates
The standard VAT rate in the Slovak Republic is 20% since Jan 2011. There is a reduced rates of 10% on certain goods and services. A number of services are exempt from Slovakian VAT, such as financial and postal services.
Click here to read about the 1% increase in Slovak VAT in 2011
There are many variations to the rates above, including exempt taxable supplies. Please contact us to learn more:
enquiries@tmf-vat.com
Slovak VAT Returns
Businesses with a Slovak VAT number must submit periodic payments. VAT filings and payments are submitted either monthly or quarterly. Any Slovak tax credits should be paid within 30 days, but typically take much longer or can be rolled over into the next return.
Slovak Intrastat
In addition to VAT returns in the Slovak Republic, companies may be required to submit additional statistical information. Slovak Intrastat, which lists sales (dispatches) and purchases (acquisitions), within the EU region, must be filed monthly once the annual threshold is exceeded.
Click here to check current Slovak Intrastat thresholds.
Slovak VAT Refunds
If a foreign company is providing taxable supplies in the Slovak Republic, but unable to obtain a VAT number, or simply incurring Slovak VAT on local goods or services, then VAT may be recovered through a VAT reclaim.
From the 1st of January 2010, VAT refund applications are made through the Tax Authorities of the applicant’s home country.
Click here to be put in touch with our Slovakian VAT team for free guidance
TMF has offices in Bratislava as well as 35 other offices in Europe and 87 worldwide. For enquiries about our international VAT services, please contact our UK global co-ordination centre:
enquiries@tmf-vat.com
+44 (0)870 067 8881
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