Marcel Muráni, Tax Advisor
Starting from January 1, 2025, several significant changes in the area of Value Added Tax (VAT) will take effect, impacting entrepreneurs and VAT payers. The amendment to Act No. 222/2004 Coll. on Value Added Tax introduces revised rules for VAT payer registration, new VAT rates, simplifications for VAT deductions in cases of intra-community acquisitions of goods, and a reduced threshold for issuing simplified invoices. In the following article, we have prepared a brief overview of the changes mentioned.
Change in VAT rates from 1.1.2025
1. Standard rate of 23% – the majority of goods and services that were previously subject to the 20% tax rate will now be taxed at this higher rate.
2. Reduced rate of 19% on food intended for human consumption, mineral water (without sweeteners), salt, and electricity. The goods and services subject to this reduced tax rate are specified in Annexes No. 7 and 7a. The reduced tax rate for electricity also applies to related electricity distribution services.
3. Reduced rate of 5% on basic food items such as meat, milk, cheese, and medicines, as well as printed and electronic books, magazines, printed materials, and admission to sports events and fitness centers. Following criticism, accommodation services, restaurant, and catering services will also fall into the category with the lowest VAT rate. These goods and services are exhaustively defined in Annexes No. 7 and 7a of the law.
Changes in VAT payer registration
Starting in 2025, a taxable person with a registered office, place of business, or establishment in Slovakia will be required to become a VAT payer:
- on the first day of the calendar year (i.e., January 1) following the calendar year in which the value of goods or services supplied by the taxable person, included in turnover, exceeds €50,000, or
- upon the supply of goods or services that causes the value of goods or services supplied by the taxable person, included in turnover, to exceed €62,500 in the current calendar year.
The tax office will register an entrepreneur that has exceeded a turnover of €50,000 within ten days of receiving the application and will assign a VAT identification number (VAT ID), which will become valid:
- on January of the calendar year following the calendar year in which the turnover of €50,000 was exceeded (until then, the VAT ID is “frozen”), or
- upon the supply of goods or services that causes the turnover to exceed €62,500, if the supply took place before January 1 of the calendar year following the one in which the €50,000 turnover was exceeded.
VAT deduction on acquisitions of goods from the EU without a supplier invoice
The acquisition of goods for consideration from another European Union (EU) member state is subject to tax in the domestic country if the supplier of the goods is also assigned a VAT identification number in their EU member state. At the same time, however, the VAT payer also has the right to deduct this VAT. Until the end of 2024, the right to deduct VAT was tied to the existence of an invoice from the supplier.
The amendment to the law introduces the possibility to exercise the right to deduct VAT even if the VAT payer does not have an invoice from the supplier. If the invoice is not available, the VAT payer can prove the right to deduct VAT with another reliable document that certifies the acquisition of goods in the domestic country from another EU member state and the arising tax liability in the relevant tax period. Such a document could be, for example, a delivery note. The VAT payer will then fill in the details from this alternative document in the control report.
Changes in VAT deduction upon VAT payer registration
A newly registered VAT payer can exercise the right to deduct VAT related to goods and services acquired or received before the date of becoming a VAT payer, provided that these received supplies, apart from stock, were not included in tax expenses in previous calendar years. The law valid until December 31, 2024, did not specify the period within which the new VAT payer was required to deduct VAT from such supplies. The VAT payer could exercise this right in the first or any subsequent tax period. The main change starting in 2025 is that the new VAT payer will only be able to exercise the right to deduct VAT in the first tax period.
Changes in extraordinary tax returns for late registration
A VAT payer who has not submitted a VAT registration application or has submitted it late will no longer file a single tax return for the period in which they should have been a VAT payer. In practice, if someone was delayed in registering for several months or years, they would previously file one consolidated extraordinary tax return for the entire period of delay. Starting in 2025, such an entrepreneur will be required to submit a tax return for each tax period for which, due to the failure to meet this obligation, they did not submit a tax return within the prescribed deadline, in chronological order starting from the first tax period. This measure aims to ensure fairness and equality towards responsible entities that fulfill their tax and registration obligations on time. In practice, an individual who has failed to meet the registration obligation will now be penalized for each instance of not submitting a tax return and control report.
Reduction of the limit for issuing simplified invoices
Starting in 2025, the amendment to the Value Added Tax (VAT) Act will lower the value threshold at which a VAT payer can issue a simplified invoice instead of a regular invoice, which does not need to include all the required details, such as the buyer’s information.
In the case of a receipt issued by the e-kasa client cash register, such a document can be considered a simplified invoice only if the price of the goods or services, including VAT, does not exceed €400 (until the end of 2024, the limit for cash payments was €1,000, and the limit for card payments was €1,600). A simplified invoice may also be issued in the form of a receipt from a fuel dispenser for self-service fuel dispensing if the price of the goods, including VAT, does not exceed €400.
The obligation for a VAT payer to issue a regular invoice with all required details when the document value exceeds €400 applies only in cases where the VAT payer is required to issue an invoice. In practice, this means that a VAT payer is not obligated to issue a regular invoice, for example, when the buyer is a natural person – a citizen. In such cases, a receipt from the e-kasa system will still suffice, even if the total amount exceeds €400.
Please note that if you are a VAT payer who wishes to claim a VAT deduction and the e-kasa receipt exceeds €400, including VAT, it is necessary to request the supplier to issue a regular invoice with all the required details. A receipt exceeding this amount will not allow you to claim a VAT deduction.
The information above on this website is intended to give you a basic overview of tax, accounting, and legal regulations. They do not in any way serve as a guide for their application in practice, which may differ significantly from the legislation in force at the time. The information on this website does not guarantee legal, accounting, tax or other professional advice or services. As such, information should not be taken as a substitute for professional consultations with accountants, tax, legal or other advisors. EMINEO PARTNERS shall not be liable and shall not be liable for any discrepancies, omissions or results obtained from the use of this information. All information and examples are provided without any guarantee of their applicability in practice. EMINEO PARTNERS is not obliged to reflect the applicable legislation on the information and examples provided on this website.
If you have more questions, please don’t hesitate to contact us
