Slovakia: Changes in VAT from 1.1.2019

6. October 2018

Our tax experts in Slovakia give an overview of the major expected changes in VAT from 1.1. 2019. The amendments of the VAT ACT will include the following changes:

  • complete cancellation of the obligation to lodge tax security in compulsory and voluntary VAT registration
  • introduction of new rules for the application of VAT in the acquisition of goods and services through vouchers – the purpose is to ensure reliable and consistent treatment of vouchers in all EU member states The amendment introduces the definition and classification of vouchers into single-purpose and multi-purpose and determines the date of tax liability, the tax base and other rules according to type.
  • a substantial change in the taxation of property intended for dwelling (flat, family house, residential suite) – in the case of the provision of property intended for dwelling that meets the conditions for tax exemption under the current law, the possibility of taxation of that property expires Similarly, when renting such property, i.e., regardless of the status of the beneficiary (the tenant), the landlord (the payer) will always be obliged to exempt the rent from tax.
  • more accurate specification of the moment in time relating to the start of the calculation of the 5-year period within which the taxpayer cannot apply the exemption from the tax on the provided construction
  • introduction of a new definition of turnover for the purposes of VAT with a view to unifying the conditions for taxable persons conducting either single- or double-entry bookkeeping The terms “income” and “revenue” are to be replaced by the term “value of the delivered goods and services”.
  • determination of the place of delivery of digital services for non-taxable persons from a Member State other than the place where the service provider is established, but only if the value of the delivered services without tax does not exceed EUR 10,000 in the calendar year and in the immediately preceding year
  • introduction of adjustment to the deducted tax on movable property in connection with a change in the scope of use of the movable property for business as well as for other purposes other than business
  • cancellation of the transfer of tax liability in the delivery of agricultural crops and goods from metal, if a simplified invoice is drawn up
  • changes relating to the payment of property tax in the case of cancellation of registration for VAT

There have been changes to the VAT rate for accomodation in Austria and Romania recently.

If you have questions about the VAT rates in Slovakia in 2019 get in touch with our tax experts at TPA Bratislava.