Who may be required to register as a VAT payer?
Obtaining an EU VAT certificate and VAT registration applies to businesses that:
- import goods to the Slovak market from outside the European Union,
- are involved in the purchase and sale of goods to other Member States of the European Union (intra-Community supply of goods),
- purchase and sell goods in Slovakia,
- store goods on Slovak territory for the purpose of resale,
- organise live events, exhibitions, conferences, etc. on the territory of Slovakia.
In order to register for VAT, the Slovak tax authorities require the completion of the relevant forms and the submission by the foreign entity of documents such as:
- confirmation of VAT registration in the country of origin,
- the memorandum or articles of association,
- extract from the national commercial register,
- fiscal proxy passport.
Companies without a registered office in Slovakia are required to submit the above documentation to the Slovak tax office located in Bratislava before commencing taxable activities in Slovakia.
The standard accounting period for VAT in Slovakia is one month. Those entities whose annual sales did not exceed the EUR 100,000 limit in the past financial year may settle quarterly. However, newly-registered businesses must file monthly returns, regardless of the amount of sales. The deadline for submission of the return and payment of VAT to the tax office is the 25th of the month following the end of the respective accounting period.
Failure to register for VAT is punishable in Slovakia by a fine of between EUR 60 and EUR 20,000. Foreign companies may be subject to fines ranging from EUR 30 to EUR 16,000 if they submit their returns with errors or after the deadline. Penalty interest is also charged for late payment of tax. Liabilities to the Slovak Tax Office become statute-barred after 5 years.
When accounting for VAT, input tax on the purchase of leisure and catering services and employee benefits (in the area of sport and recreation) cannot be deducted.
Foreign entities operating in Slovakia must also comply with local regulations on, inter alia: invoicing and archiving invoices and records for a period of 10 years.
The following VAT rates are currently used in Slovakia:
- 20% – standard rate,
- 10% – reduced rate (certain pharmaceuticals and medical apparatus, certain basic food products, books and other printed matter containing no more than 50% advertising content, hotel and similar accommodation services),
- 5% – reduced rate (provision of state-supported rental housing, including land, as well as renovation and reconstruction work carried out on state-supported rental housing that meets certain conditions),
- 0% – intra-Community and international passenger transport.
Services we provide in this country:
- VAT Registration
- VAT Settlements
- VAT Consulting