Slovakia announces VAT rate changes effective 2025

The Slovak government has approved significant amendments to the country's VAT regulations, set to take effect from January 1st, 2025. These adjustments aim to bolster public finances and streamline the tax framework.

The standard VAT rate will rise from the current 20% to 23%, marking a notable shift in the country's fiscal policy. Additionally, the existing reduced VAT rates will undergo changes.

A new reduced VAT rate of 19% will replace the current rate of 10%. Examples include:

non-basic foodstuffs,

domestic electricity,

catering services (including low-alcohol).

The VAT rate of 5% remains unchanged, but new products have been added to the existing list. The following goods and services, previously taxed at 10%, will now be subject to the 5% VAT rate:

catering services (without alcohol),

basic foods,

medicines,

medical devices,

books, newspapers,

rental accommodation.

These changes, passed on October 18th, 2024, reflect a broader trend among European nations to recalibrate tax policies in response to economic challenges. Businesses operating in Slovakia will need to update their systems and processes to ensure compliance with the new rates.

For more detailed information, refer to the Slovak legislative database.