VAT Registration Slovakia 2021 Guide
VAT in SlovakiaUpdated on Friday 26th March 2021
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The Value Added Tax (VAT) in Slovakia is a tax which is applicable to all products and services sold on the local market. The VAT is imposed to both natural persons and legal entities, buying and selling various goods within the territory of the country. Companies operating here, both local and foreign, are required to register for VAT purposes and our team of Slovakian lawyers can provide legal assistance on the registration process.
Businessmen interested in opening a company in Slovakia should know that they will be imposed the VAT for the products or services they provide to the local consumers. As a general rule, the standard rate in Slovakia is established at 20%, but it is important to know that the local authorities imposed a reduced VAT rate, which is applied at the rate of 10%.
The reduced rate is available for the following types of products:
- pharmaceutical products;
- medical equipment used by disabled persons;
There are several products and services which are exempt from VAT, such as financial and banking services, insurance or rental services (only for properties which are not considered new). Our team of Slovakian attorneys can offer more details on the VAT in Slovakia.
If you need updated information on the VAT in Slovakia in 2021, our local advisors are at your service.
VAT-taxable goods and services in Slovakia
The Slovak legislation is very comprehensive in respect to the goods and services subject to the VAT. In order to be able to collect the tax, a Slovak company must first register with the tax office in which it is located.
The most important transactions which require VAT registration in Slovakia are the supply of goods and services. In order for a company or sole trader to be required to register for VAT, a specific turnover must be obtained from the supply of the respective goods and/or services.
Import and export activities are also subject to VAT payments under special rates.
Slovakia also imposes a special VAT regime. This is available for suppliers issuing payment receipts for the goods and services sold. However, this regime applies in specific cases and implies the supplier to pay the VAT before the client/customer pays for the good or service purchased. This VAT regime is known as cash accounting and can be used by Slovak companies or foreign businesses that have a management place in Slovakia which meet certain requirements.
Our lawyers in Slovakia can offer more information on the various VAT requirements applicable in this country at the level of 2021. Also, if you need assistance how to obtain a Slovak VAT number, we are at your service.
Goods and services exempt from VAT in Slovakia in 2021
There are various categories of goods and services exempt from the VAT in Slovakia. Among these, we mention the following:
- postal services and the supply of goods and related to them;
- healthcare goods and services, no matter if they are offered by state or private facilities;
- there are also several healthcare products exempt from the VAT, in accordance with the law;
- certain social assistance and education-related services;
- specific sport and physical activities, as well as cultural services;
- insurance and re-insurance services are also exempt from the VAT in Slovakia;
- the supply and leasing of various types of real estate property.
The range of activities exempt from VAT in Slovakia in 2021 is quite significant, however, we invite you to discuss with our lawyers in Slovakia about the applicability of these exemptions in accordance with the law.
Who is required to register for VAT in Slovakia?
Under the Value Added Tax Act, which was last amended in 2019, the following taxpayers are required to apply for VAT registration in Slovakia:
- taxable persons and companies who have their residence, respectively management places on the territory of the country and has registered a minimum turnover of 49,790 euros in 12 consecutive months;
- taxable persons and companies that have not reached the registration threshold but want to register voluntarily;
- taxpayers registered in other countries who conduct business activities liable to VAT in Slovakia;
- foreign entities operating through branch offices that complete VAT-payable supply of goods and services;
- groups of companies are also allowed to register for VAT in Slovakia under certain circumstances.
If you need more information on the VAT registration requirements applicable in this country, our law firm in Slovakia is at your disposal with details.
We invite you to read about the VAT registration procedure in Slovakia in the scheme below:
Documents required for VAT registration in Slovakia in 2021
The list of documents to be submitted with the local tax office for Slovakia VAT registration is not extensive. Companies or sole proprietorships are required to submit an application form alongside information about their status of taxpayers in Slovakia. In the case of entities applying for voluntary VAT registration, these are required to file an estimate of the expected turnover.
Companies and other entities are required to register for VAT with the tax offices in the Slovak cities they operate in. These fall under the administration of the Ministry for Finance in Slovakia.
Our Slovak law firm can guide companies through the mandatory and voluntary VAT registration procedures.
VAT registration for non-resident companies in Slovakia
Slovakia became a member of the European Union (EU) in 2004 and, since then, it has integrated in its national taxation system the EU’s regulations concerning VAT registration, compliance and procedures.
It is important to know that the foreign companies operating on the local market are required to register for VAT in Slovakia in the following situations, as stated by the EU’s directives:
- importing products on the EU’s common market by transiting Slovakia;
- purchasing and selling goods and services in Slovakia;
- internet sales on the Slovakian market;
- live events in Slovakia, for which the organiser sells tickets.
With a vast experience in tax legislation, our law firm is at the services of local and foreign investors interested in setting up companies in Slovakia. We can handle the entire business registration procedure which also implies VAT registration in Slovakia.
VAT registration requirements for foreign citizen in Slovakia
Foreign citizens seeking to start commercial operations in Slovakia are required to register for VAT just like foreign companies, however, they must comply with various requirements before coming to this step. According to the Slovak Tax Code, a natural person must register for VAT here no matter if it does not have a residence permit or place to stay. In other words, foreign citizens must register with the Slovak tax offices even if they sell goods or services from abroad to Slovak nationals. The registration must be completed prior to the sale of goods or services.
An important thing to consider with respect to foreign citizens selling goods and services from a distance is that they are not subject to the mandatory VAT registration threshold in Slovakia in 2021; in other words, they need to register with the local authorities no matter the value of the goods they sell or services they provide.
The tax authorities in Slovakia will register the foreign citizens as taxpayers, will issue them tax registration certificates and assign them tax identification numbers. The advantage of registering for taxation and VAT in Slovakia is that these foreign citizens will be able to file tax and VAT returns and obtain refunds on the taxes paid in accordance with the legislation of this country. Another useful information is that these persons will be able to access various facilities in accordance with Slovakia’s double tax treaties, provided that they are citizens of countries that have such agreements.
Our lawyers in Slovakia have a vast knowledge in respect of the tax legislation and can advise foreign citizens and companies on such matters. It is possible to appoint a representative to help you register for VAT in Slovakia if you are foreign citizen and one of our lawyers can act as such on your behalf. All we need is a power of attorney to represent you in the relation with the tax authorities.
VAT invoicing requirements in Slovakia
In order to keep track of VAT payments, all taxpayers registered for VAT in Slovakia have the obligation of issuing invoices which contain specific information. The following invoicing requirements must be respected by Slovak companies and sole traders or other business forms:
- the invoice must be issued within maximum 15 days from the supply of goods or services;
- the name and other information of the issuant of the invoice;
- the address, place of business and tax identification number of the company;
- the invoice number and the date the goods or services were supplied;
- the quantity and type of goods supplied;
- the taxable amount which must include the price per unit without the VAT, the VAT, the price per unit with the VAT;
- the tax exemption or reduction, where applicable.
It is useful to note that the invoice can be issued in paper or electronic formats. Our law firm in Slovakia can offer updated information on the tax legislation applicable in this country.
The reverse-charge mechanism on VAT in Slovakia
The supply of certain goods and services can be subject to the reverse-charge mechanism. This is possible between two local taxpayers and the supply of the following goods and services can be subject to the VAT reverse-charge mechanism:
- real estate;
- agricultural products;
- mobile phones;
- buildings and other constructions;
For the supply of such goods and services, the supplier will not apply the VAT so that the recipient can file for the reverse-charge.
Our Slovak lawyers can offer more information on the requirements applicable under the reverse-charge mechanism for VAT and can assist you in the process of VAT registration in Slovakia in 2021.
VAT filing requirements
Obtaining Slovakia VAT numbers has certain benefits for companies. One of the most important advantages is that VAT-registered companies can obtain refunds on the amounts of money paid. In order to do that, they must respect the VAT filings calendar.
Slovak VAT payers have the following filing obligations:
- VAT reporting can be submitted every month or every 3 months;
- based on the reporting period, companies must pay the VAT within 15 days after filing the reports;
- corrections to VAT reporting documents can be filed within 30 days after noticing them;
- foreign companies applying for VAT returns in Slovakia can file their requests no later than the 30th of September of the calendar year.
Those who want to register for Slovak VAT in 2021 can rely on us for various services, including those related to the legislation related to filing tax returns.
In 2021, those who want to obtain VAT numbers in Slovakia can complete the procedure upon company and tax registration. However, this is applicable to those interested in the voluntary procedure. They will benefit from various advantages, among which the possibility of of applying for VAT refunds.
We also invite you to watch a video:
De-registration for VAT in Slovakia
It is possible for a Slovak company to de-register from VAT provided that certain requirements are fulfilled. Among these, a taxpayer has the right to ask for de-registration if within a year from becoming a VAT payer the company or person has not reached the mandatory threshold of 47,790 euros within 12 months. A company will be automatically de-registered from VAT if it has ceased its activity and was liquidated. It is also possible for the tax authorities to de-register a business if it has failed to comply with the filing requirements repeatedly over a calendar year, if it has not been available at its registered seat on several occasions, or if did not comply with the tax audit requirements.
Persons who are interested in receiving more details on the VAT and VAT registration in Slovakia can contact our Slovak law firm for legal assistance on this matter.