Changes in VAT registration from 01.01.2025
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April 14, 2025
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The National Council of the Slovak Republic has approved an act amending and supplementing Act No. 222/2004 Coll. on Value Added Tax (VAT). This amendment brings several significant changes that will come into effect from 1 January 2025 and will mainly affect the conditions for registering VAT payers, the method of tracking turnover and other areas.
New conditions for VAT registration according to § 4
One of the most important changes is the establishment of new conditions for registering VAT payers. A taxable person who has a registered office, place of business or establishment in the country (if he does not have such a place, but has his residence or usually resides in the country) becomes a VAT payer:
- The first day of the calendar year following the calendar year, for which the value excluding tax of the goods or services supplied by this person exceeded 50,000 euros.
- By supplying goods or services, the value excluding tax of the goods or services supplied by this person exceeds 62,500 euros in the current calendar year.
This change means that VAT turnover will be tracked for the calendar year, with it being "reset to zero" at the beginning of each year. Previously, turnover was tracked for a maximum of 12 consecutive calendar months.
Obligations of taxable persons:
If the turnover exceeds €50,000: The taxable person must submit an application for VAT registration by 5 working days from exceeding the turnover. The tax office will issue a decision on registration within 10 days, with the registration taking effect from January 1 of the following year.
If the turnover exceeds €62,500: The taxable person must without delay submit a notification of exceeding turnover. In this case, VAT registration is "activated" immediately, i.e. the taxable person becomes a VAT payer from the date of exceeding the turnover. The invoice by which the turnover was exceeded must already be issued with VAT.
Example
Company BD Sales, sro. reached a turnover in January 2025 15 000 €, in February more 15 000 € and by April 15, 2025 added 21 000 €, which exceeded the total turnover 50 000 €. To April 20, 2025 (within 5 working days) must submit an application for VAT registration. The Tax Office will 10 days (for example, by April 29, 2025) will issue a registration certificate, which will, however, only be effective from January 1, 2026.
However, on May 26, 2025, the company will achieve another turnover 13 000 €, thereby crossing the border 62 500 €. Must without delay submit a notification of exceeding turnover, which will "activate" VAT registration as of this date. From May 26, 2025 becomes a VAT payer and must invoice with VAT from this date.
Registration of foreign persons pursuant to Section 5
A foreign taxable person without a registered office or establishment in Slovakia becomes a VAT payer by carrying out a taxable transaction that is subject to tax in Slovakia (with the exception of certain transactions specified in the law). Like domestic persons, he must submit an application for VAT registration by 5 working days from the occurrence of this fact. The Tax Office will issue a decision within 10 days, with registration being effective from the date of the taxable transaction.
Other significant changes
- Financial leasing: The VAT regime for financial leasing is changing from 1 January 2025. If exercising the right to purchase is the only economically rational option for the lessee, the handover of the leased asset will be considered a supply of goods. The tax will have to be paid on the entire value of the lease at the beginning, not gradually on individual installments.
- Tax deduction based on a document other than an invoice: The possibility of deducting tax when acquiring goods from another EU member state is being introduced, also based on another document that proves the acquisition of the goods and the amount of tax liability.
- Late VAT registration: A taxable person who files a late application for registration will have to file monthly tax returns and audit reports for each month separately, increasing the administrative burden and potentially imposing penalties for non-compliance.
- Changes in billing:
- If the payer does not have a VAT ID number assigned within 15 days (but has fulfilled the registration obligation), he must issue an invoice within 5 working days from the date of receipt of the registration decision.
- Tax deduction based on a receipt from the e-kasa client cash register will only be possible up to the value 400 € including tax, regardless of the method of payment.
Small businesses and special treatment
The Slovak Republic is transposing Directive (EU) 2020/285 concerning a special scheme for small enterprises. The aim is to ensure equal conditions for established and non-established persons in the exemption from VAT up to a certain turnover.
Conditions:
- Annual domestic turnover:
- 62 500 € in the current calendar year.
- 50 000 € in the previous calendar year.
- Annual turnover in the EU: 100 000 €.
Taxable persons who do not exceed these turnovers will be assigned a special VAT ID number with the suffix ""EX"", which will allow them to supply goods and services throughout the EU with exemption from tax as taxable persons who are not VAT payers.
Other changes
- The obligation to refund the deducted tax extends to cases where the goods have been misappropriated in any way.
- The place of supply of cultural, educational or entertainment services provided online is changing, which will affect the application of VAT to these services.
- The obligation to refund the deducted tax for unpaid liabilities will arise in the tax period in which 101 days have passed since the due date (instead of the current 100 days).
- The application of the tax exemption for the supply of goods to another Member State is clarified if the goods are not supplied by the taxable person.
Self-assessment upon import
From July 1, 2025, it will be possible to apply self-assessment when importing goods, provided that the taxpayer:
- It is established in Slovakia (has a registered office, place of business, establishment or residence).
- It is registered for VAT in Slovakia.
- It is an approved economic operator.
The taxpayer will have to calculate the tax and include it in the tax return for the period in which the tax liability arose, and can also deduct it (if they meet the conditions).
From 1 January 2026, the option of self-assessment will also be extended to foreign persons registered for VAT in Slovakia. Self-assessment will only be possible within the framework of the centralized customs procedure (CCK).
Conclusion
The amendment to the VAT Act brings fundamental changes that will affect a wide range of taxable persons. It is important for entrepreneurs to thoroughly familiarize themselves with these changes and adapt their processes to the new legislative requirements effective from 1 January 2025.