VAT Slovakia Guide
Read our guide and find out all you need to know about VAT in Slovakia, from registration to filing, and more.
Slovakia presents an attractive opportunity for businesses looking to expand in the EU. However, engaging in commercial activities in Slovakia entails understanding and complying with the local VAT (Value Added Tax) system. This guide offers a comprehensive overview of VAT in Slovakia, providing essential insights for businesses operating in this market.
What is the Slovakia VAT rate?
In Slovakia, VAT is referred to as Daň z pridanej hodnoty (DPH). The standard Slovakia VAT rate is 20%, with a reduced rate of 10% and a 0% rate. These rates are in accordance with EU VAT Directive guidelines, allowing Slovakia to apply reduced VAT rates to specific goods and services.
Registering for VAT in Slovakia
Both resident and non-resident businesses engaging in taxable activities within Slovakia are required to register for VAT. The threshold for mandatory Slovak VAT registration is €49,790 for resident businesses. For non-resident businesses, there is no threshold; they must register for VAT as soon as they start taxable activities in Slovakia.
The threshold for distance selling in Slovakia is €10,000, aligning with the regulations implemented across the European Union on July 1, 2021. Consequently, if your yearly cross-border sales to Slovakia surpass this €10,000 limit, it becomes mandatory to register for VAT and file VAT returns. This requirement also applies if you maintain inventory in Slovakia or participate in a Fulfilled-by-Amazon (FBA) program that operates within the country.
Registration can be done through the Slovak Financial Administration website. The process involves completing the relevant forms and submitting the necessary documentation. The typical processing time to receive a Slovakia VAT number is up to four weeks.
Fiscal representation in Slovakia
EU businesses are not required to appoint a fiscal representative in Slovakia, nor are non-EU-based businesses. However, they may opt to use a fiscal representative for ease of compliance.
Slovakia VAT return filing and penalties
VAT returns in Slovakia are generally filed monthly. However, businesses with an annual turnover of below €100,000 are permitted to file quarterly. The deadline for filings and payments is the 25th day of the month following the reporting period. All Slovakia VAT returns must be submitted electronically.
The penalty for filing a Slovak VAT return late is a fine of between €30 to €16,000, depending on the severity of the infringement. Unpaid VAT will incur an interest charge of 4x the Slovak National Bank rate.
Slovak Intrastat declarations
Businesses that move goods across EU borders from or to Slovakia are required to submit Intrastat declarations if their annual trade exceeds €1 million for arrivals or dispatches. These declarations must be filed monthly by the 15th day of the following month. Late filings may incur penalties.
Reverse charge in Slovakia
The reverse charge mechanism is applicable in Slovakia for certain goods and services, especially in cases where a non-resident business supplies to a VAT-registered business in Slovakia. This mechanism transfers the VAT payment obligation from the supplier to the recipient.