Slovakia levies a value-added tax (VAT) on the supply of most goods and services in the country, including intra-community acquisitions and imports. The standard rate of VAT is 20% (increased to 23%, effective 1 January 2025). The reduced VAT rates of 5% and 10% (increased to 19%, effective 1 January 2025) apply to certain supplies whilst certain others are either zero-rated or exempt.

Reduced VAT Rate of 5% Supplies Include:

Supply or renovation of state-supported residential rental housing;
Certain basic foods such as vegetables, fruits, meat, bread, milk (effective 1 January 2025);
Medicines and pharmaceuticals (effective 1 January 2025);
Books (effective 1 January 2025);
Newspapers (effective 1 January 2025);
Restaurant services excluding alcoholic beverages (effective 1 January 2025);
Accommodation services (effective 1 January 2025); and
Entry to sports events (effective 1 January 2025).

Reduced Rate of 10% (19% effective 1 January 2025) Supplies Include:

Electricity (effective 1 January 2025);
Non-alcoholic drinks served in restaurants (effective 1 January 2025);
Foods other than basic foodstuff (effective 1 January 2025);
Certain books, brochures and leaflets (until 31 December 2024);
Children's books (until 31 December 2024);
Pharmaceuticals (until 31 December 2024);
Medical aids (until 31 December 2024);
Basic foodstuffs, including fish, meat, butter, milk and bread (until 31 December 2024);
Restaurant services (excluding alcoholic beverages, effective 1 January 2024 until 31 December 2024); and
Accommodation services (effective 1 January 2018 until 31 December 2024).

Exempt Supplies Include:

Postal services;
Financial services;
Medical services;
Education services;
Insurance and reinsurance;
Social welfare;
Cultural services; and
Transfer and lease of real estate.

Zero-Rated Supplies Include:

Export of goods and services;
Services related to exports;
Intra-Community supply of goods; and
International transport of persons.

Registration Threshold

Taxpayers are required to register for VAT if the taxable turnover is EUR 49,790 or more in the previous 12 months. Effective 1 January 2025, a person is considered as taxable for VAT purposes, from 1 January of a calendar year, if the turnover from the supply of goods and services exceeded EUR 50,000 in the previous year or exceeds EUR 62,500 in the current year. Voluntary registration is possible when the threshold has not been met (effective 1 January 2025 if turnover exceeds EUR 50,000 in the current year).

Effective 1 January 2025, a new VAT scheme applies to small businesses. The scheme allows small businesses established in other EU Member States to benefit from a VAT exemption if annual turnover in the EU does not exceed EUR 100,000 and annual turnover in the Slovak Republic does not exceed the threshold of EUR 62,500 in the current year or EUR 50,000 in the previous year. Likewise, small businesses established in the Slovak Republic may benefit from a VAT exemption if annual turnover in the EU does not exceed EUR 100,000 and annual turnover in another EU Member State does not exceed the respective threshold of the other State.

There is no threshold for non-residents without an establishment in Slovakia and registration is required before making any taxable supplies in the country. An application for registration is required to be submitted within five working days of becoming a taxable person. However, a non-resident person is not treated as a taxable person for VAT purposes in certain cases, including where the non-resident person only supplies certain goods and services that are exempt from tax, or subject to reverse charge, and certain other cases.

Returns and Payments

Taxpayers are required to file returns and make corresponding tax payments electronically on a monthly basis within 25 days after the end of the tax period.

VAT levy and payment are generally applicable on an accrual basis. However, an optional cash basis accounting scheme for VAT is introduced for small taxpayers whose annual taxable turnover does not exceed EUR 100,000. Under the scheme, qualifying registered taxpayers are able to delay the declaration of output VAT until the related customer payment is actually received. Likewise, the taxpayer may not claim input VAT until the related payment is made.

Digital Supplies

VAT on Distance/Electronic Sale of Goods

Effective 1 July 2021, Slovakia has implemented the new EU VAT rules for e-commerce transactions for supplies made to non-taxable persons. The following are the key changes under the new rules:

The distance sales threshold of EUR 35,000 (applicable until 30 June 2021) is abolished and the destination principle for distance sales of goods applies instead. Thus, supplies are subject to VAT in the Member State of the recipient, regardless of the supplier’s distance sales volume;
In order to reduce the administrative burden on smaller businesses, a simplification option is introduced for smaller businesses with annual sales not exceeding EUR 10,000, which allows the accounting for VAT according to local rules. Hence, the VAT is collected in the Member State where the seller is established or where transportation starts;
A One Stop Shop system (OSS) is introduced for domestic sales of certain goods and intra-EU distance sales of goods to customers within the EU. Under the OSS, an opportunity is given to the taxpayer to register in one EU Member State (referred to as the Member State of Identification) and report all sales to customers across the EU in a single, consolidated VAT return. The VAT on consignments imported from outside the EU with a value not exceeding EUR 150 can be reported through a new special scheme, viz. Import One Stop Shop (IOSS); and
For goods imported from outside the EU, the erstwhile import exemption for low value goods (below EUR 22) ceases to apply. Therefore, VAT at the appropriate rate becomes due on such imports in the EU.

VAT on Electronic Supply of Services

As per the place of supply rules, electronically supplied services, telecommunications, and broadcasting services to consumers located in the EU Member States are, in general, taxable at the customer’s location, irrespective of whether the customer is a taxable person (B2B) or a consumer (B2C). As an exception to this rule, effective 1 January 2019, electronic services provided to a non-taxable person (B2C) are taxable at the location of the supplier, provided the total amount of consideration received for the relevant services does not exceed EUR 10,000 (HRK 77,000 until 31 December 2022). Effective 1 July 2021, under new EU VAT rules for e-commerce transactions, the OSS is introduced wherein an opportunity is given to the taxpayer to register in one EU Member State (referred to as the Member State of Identification) and report all sales to customers across the EU in a single, consolidated VAT return. The following schemes are available within the OSS:

The non-Union scheme for taxable persons that have no establishment within the EU; and
The Union scheme for taxable persons that have an establishment within the EU (but are making supplies to Member States in which they are not established).

Until 30 June 2021, taxpayers had the possibility to opt for the use of the Mini One Stop Shop (MOSS) for the supply of telecommunication, broadcasting, and electronic services in order to minimize their tax compliance burden.

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