Slovakia: Proposed changes to VAT law

Proposed amendment generally would be effective 1 January 2023

Proposed amendment generally would be effective 1 January 2023

The Slovak Ministry of Finance proposed an amendment to the value added tax (VAT) law that generally would be effective 1 January 2023.

The amendment would provide for:

  • An obligation of the VAT payers to correct input VAT deducted from the goods and services purchased in Slovakia provided the payments are (partially) overdue for more than 90 days
  • A change in limitation of input VAT deduction—input VAT deduction would not be allowed from the expenditures that do not unequivocally belong to business expenditures (e.g., for business entertainment purposes)
  • A cancellation of the VAT registration obligation (and introduction of the VAT deregistration possibility) of established entities provided they exceeded the registration turnover solely from specific VAT-exempt supplies (insurance and financial services and supply and rent of immovable property)

The proposed amendment to the VAT law would also impose a new reporting obligation of providers of payment services effective 1 January 2024.

Read a June 2022 report prepared by the KPMG member firm in Slovakia

 

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