The Slovak Ministry of Finance has recently proposed a series of financial measures to tackle the increase in public debt. Below are the VAT related measures:

- Increase of the standard VAT rate from 20% to 22%
- Abolition of reduced VAT rate on foodstuffs, accommodation, books, music and newspapers.
- Special scheme for small businesses: any company with an annual turnover of EUR 50k and European annual turnover until EUR 100k can be issued with a special VAT number ending in 'EX' that enables them to supply goods and services in the EU tax-exempt. This threshold applies for both Slovak and foreign companies.
- Introduction of the reverse charge mechanism for importations from July 2024 for companies registered for VAT in Slovakia that hold AEO approval in accordance with customs legislation.
- Updates on the place of supply for services in the case of virtual events
- Changes in VAT registration and VAT deregistration of established and non-established taxable persons;
- Changes in late VAT registration and related reporting: a late registration implies individual tax returns and control statements for each month of the period for which they should have been registered to be submitted separately, rather than a single return covering all transactions.

If you have any questions on the impact of the above changes on your business, please contact us here