The Author of the VAT Guide
What does this guide contain?
The guide provides you with practical VAT information for Slovakia :
- Your VAT registration in Slovakia
- Your VAT obligations TVA in Slovakia
- The invoicing rules in Slovakia
VAT REGISTRATION IN SLOVAKIA
When do you have to register for VAT?
Elimination of the requirement for foreign taxable persons to register for VAT purposes before engaging in taxable transactions (2024). Foreign entities should VAT register without delay upon executing a taxable transaction, rather than in advance, and the tax authority is obliged to register your company immediately after receiving the application. Financial penalties may apply if the application for registration is submitted late.
What documents do I need to provide when I register?
If your company wishes to register for VAT in Slovakia, it is essential to contact the Slovak tax authorities. There is no need to contact the tax authorities in your country of establishment.
In particular, your company will need to submit the following documents:
- The VAT registration form(s) completed in the language of the country
- A copy of the articles of association
- An extract from the trade register
- A certificate of VAT liability
- Power of attorney (if using a fiscal agent)
- Proof of activity on the territory of the country concerned: a contract, an order form, etc.
The Slovak tax authorities may require some of these documents to be translated into Slovak.
How long does it take to get a VAT number?
If your file is complete, it generally takes one month to obtain the VAT number from the competent Slovak tax office.
Is a fiscal representative necessary?
Slovak VAT authorities may require non-European companies to appoint a fiscal representative. This is a local company that will represent you to the local VAT authorities. He is responsible for the respect of all your VAT obligations, including those of which he was not aware. For this reason, he may require a deposit (e.g. a bank guarantee) from you before accepting the representation assignment.
European companies are not obliged to appoint a tax representative. However, to facilitate their relations with the local tax authorities, they may appoint a proxyholder to carry out the tax formalities on their behalf. In this case, it is not necessary to issue a bank guarantee. The company remains solely responsible for paying its VAT debts.
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VAT OBLIGATIONS IN SLOVAKIA
Is it necessary to keep VAT accounting ledgers?
Your company must keep ledgers sufficiently detailed to enable the application of VAT and its control by the Slovak tax authorities.
When do you have to file a VAT return?
Your company has to report its VAT position by filing periodical VAT returns on a monthly basis (Form DPH). Quarterly reporting can be opted for under specific conditions.
The VAT return must be filed electronically by the 25th day of the month following the end of the taxable period [month/quarter] to which it relates.
The VAT expert's eye
Member States set the duration of the taxable period at one, two or three months. However, they may set different periods provided they do not exceed one year. The VAT return must be submitted within a period to be determined by the Member States. This deadline may not be more than two months after the end of each taxable period (Art. 250 of the VAT Directive).
Do I have to submit an annual return?
Your company is not required to file an annual recapitulative VAT return.
The VAT expert's eye
Member States may require the taxable person to file a return containing all the data referred to in Articles 250 and 251 and concerning all transactions carried out during the previous year. This return shall include all the information necessary for any adjustments. They authorize, and may require, the return to be made by electronic means under conditions which they determine (Art. 261 of the VAT Directive).
What is the deadline for paying Slovak VAT?
The company must pay the VAT due no later than the 25th day of the month following the taxable period.
Interim payments are not required.
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Every taxable person who is liable for the tax must pay the net amount of VAT when filing the VAT return. Every taxable person who is liable for the tax must pay the net amount of VAT when submitting the VAT return. However, Member States may set a different deadline for the payment of this amount or collect instalments (Art. 206 of the VAT Directive).
When should the intra-EU statement be filed?
The recapitulative Statement [ESL] must be filed on a monthly basis. It is also possible to submit recapitulative statement for a calendar quarter provided that the value of intra-EU supply of goods does not exceed € 50.000 in both respective calendar quarter and in the preceding four calendar quarters.
The Statement must be filed by the 25th of the month following reporting period.
The eye of the VAT expert
A recapitulative statement is drawn up for each calendar quarter within a period and according to procedures to be determined by the Member States. However, Member States may provide for recapitulative statements to be submitted on a monthly basis. Member States may allow, and may require, recapitulative statements to be submitted electronically under the conditions they determine (Art. 263 of the VAT Directive).
INVOICING RULES IN SLOVAKIA
Does the invoice have to include VAT? Reverse Charge?
As a supplier of goods or services, your company is normally obliged to issue an invoice with VAT to its customer. This is the general rule. However, there are many derogatory situations which transfer this obligation to pay tax to the customer himself. These situations are known as "reverse charge" situations.
The special reverse charge rules have been introduced in Slovakia for foreign companies:
For supplies of goods:
Reverse charge mechanism is applicable to all domestic supplies of goods made by a business not established nor VAT registered in Slovakia, provided that the customer is VAT registered and established in Slovakia.
For supplies of services:
Reverse charge mechanism is applicable to all domestic supplies of services, provided that the customer is VAT registered and established in Slovakia.
The eye of the VAT expert
New rules for construction services are in application since 2016.
According to an amendment of the Slovakian VAT act (under section §69, (17), of the 222/2004) transfer of tax liability in Slovakia has applied to deliveries related to building work and assembly services, provided certain conditions are met.
What are the mandatory mentions on an invoice?
The VAT Directive lays down the minimum information that you must include on your invoice. In some cases, countries may add additional compulsory information. Particular attention should be paid to the conversion rates when the currency used on the invoice is not that of the country in which the transaction takes place, and to the specific statements justifying the legal reason why VAT is not charged.
What VAT rate should be mentioned on an invoice?
Slovakia has 2 different VAT rates :
- Standard rate : 20%
- Intermediary rate : 10%
VAT REFUNDS IN SLOVAKIA
How can I recover VAT in Slovakia ?
There are several methods to obtain refunds of Slovak VAT. The practical formalities for reclaiming foreign VAT will differ depending on whether or not your company is established in Europe and/or is identified for VAT in Slovakia:
- If your company has a VAT number in Slovakia, it will have to submit a refund application in the form and within the timeframe required by local regulations. A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for. VAT credit is in principle effectively reimbursed by Slovak VAT authorities within 30 days of the expiration of the time limit for filing the tax return.
- If your company is established in a European country and does not have a VAT number in Slovakia, it will have to apply for a VAT refund electronically from its country of residence, in the form and within the time limits required by Directive 2008/9.
- If your company is established outside Europe and does not have a VAT number in Slovakia, it may have to appoint a tax representative to submit its refund application in the form and within the time limits required by the 13th Directive.
The eye of the VAT expert
As from January 2022, tax authorities will publish the list of bank accounts to be used by each taxpayer and economic operator in Slovakia. In case the bank account provided was not notified to the tax authorities, the reimbursement will be postponed until this obligation is met.
Is Slovak VAT recoverable on all expenses?
VAT incurred on purchases, imports or intra-Community acquisitions of goods and services can be reclaimed by a foreign company provided that these expenses are for taxable activities and provided that the appropriate documentation is available.
However, no input VAT can be recovered for the purposes of treat and entertainment.
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