VAT rate increase in Slovakia

The Slovak Government introduces the consolidation package for 2025. With the goal to increase budget income by more than EUR1 billion significant change of VAT rates was introduced. As a result of these changes:

• the base VAT rate shall increase from 20% to 23%,
• the lowest VAT rate shall be decreased from 10% to 5 % and shall apply especially to medicine and certain medical equipment, certain basic food, restaurants (except for alcoholic drinks),
• the decreased 19% VAT rate shall apply to food to which the 5% VAT rate does not apply, electricity and other goods.

Another proposed change impacts the special levy on business in regulated sectors, whereby the special levy will be extended to the production of petroleum products and their chemical processing, and the tax base calculation will be changed, as well as the levy itself.

The whole consolidation package introduces other changes impacting direct taxation, social security, as well as new taxes.

Key takeaway

The Slovak 2025 consolidation package aims to boost budget income by over EUR1 billion. Key changes include increasing the base VAT rate from 20% to 23%, reducing the lowest VAT rate from 10% to 5% for essential items, and applying a 19% VAT rate to electricity and other goods and services. The special levy on regulated sectors will extend to petroleum production and chemical processing, with changes to the tax base and levy calculation.

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