Slovakia Value Added Tax Alert: New VAT registrations conditions and Special Scheme for Small Enterprises

Introduction

Effective from January 2025, Slovakia implemented VAT registration changes and Special Scheme for Small Enterprises. The Special Scheme for Small Enterprises simplifies VAT administration within EU. As such this scheme allows small enterprises from other EU member states to exempt deliveries from VAT in Slovakia and vice versa Slovak small enterprises may be exempted from VAT in other EU member states. The current turnover threshold for compulsory VAT registration will be increased and replaced by 2 new thresholds based on turnover reached within a single calendar year. Registration deadlines shall also be significantly reduced.

VAT registrations in Slovakia

The current concept of mandatory VAT registration following reaching a turnover of EUR49,790 within a rolling 12-month period shall be replaced by new approach based on turnover thresholds reached within a single calendar year. The new turnover thresholds shall be:

• exceeding EUR50,000 within a calendar year, whereby such enterprise shall become VAT payer from the 1 January, of the subsequent calendar year;
• exceeding EUR65,250 within a calendar year, whereby such enterprise shall become VAT payer from the supply of goods or services from which the turnover threshold will be exceeded.

The mandatory VAT registration shall be filed within 5 working days from the day on which the respective turnover threshold is exceeded. The registration shall be filed with the Slovak tax authorities electronically. Voluntary VAT registration remains possible, before the enterprise reaches any of the turnovers mentioned above.

The new VAT registration conditions require enterprises to review their turnover regularly to meet the short and strict VAT registration deadline. Until the end of 2024 the VAT registration deadline due to exceeded turnover remains the 20 day of the subsequent calendar month.

Foreign non-established VAT payers delivering services and goods subject to Slovak VAT will be required to file for a VAT registration within 5 working days from the day they become VAT payers in Slovakia. This is a positive change for foreign VAT payers, since until end of 2024 they are required to register for VAT in Slovakia before delivery of goods or services in Slovakia.

The tax authority shall complete the VAT registration within 10 calendar days from the filled VAT registration.

Special Scheme for Small Enterprises

Foreign Enterprises VAT Exemption

Under the new special scheme for small enterprises, foreign enterprises from other EU member states may benefit from VAT exemption in Slovakia based on their turnover in Slovakia and EU. For the purposes of the VAT exemption in Slovakia based on this scheme, as a small enterprise shall be regarded enterprise fulfilling following conditions:

• their turnover in Slovakia in the running calendar year does not exceed EUR62,500;
• their turnover in Slovakia in the previous calendar year did not exceed EUR50,000;
• their turnover within the EU in the running calendar year does not exceed EUR100,000 and
• they benefit from the special scheme for small enterprises in their country of establishment.

Application to Slovak Enterprises

Slovak enterprises may benefit in other EU member states from this scheme. For the purposes of this scheme a Slovak enterprise shall be regarded as small enterprise and may register for the scheme in Slovakia if:

• their turnover from goods and services delivered in the EU in the running calendar year does not exceed EUR100,000 and
• their turnover from goods and services delivered in the EU in the previous calendar year did not exceed EUR100,000.

The registration shall include information on the EU member states the enterprise wishes to deliver goods and services with VAT exemption under this scheme (future changes are possible). The benefit of VAT exemption from this special scheme in such other EU member states depend on the local conditions and applied turnover criteria.

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