The National Council of the Slovak Republic has approved an amendment to the VAT Act and related legislation, introducing several significant changes. These reforms will be implemented gradually, with most provisions coming into effect on January 1, 2025.

One of the key updates is the adjustment to the VAT registration threshold for domestic taxpayers. Currently, a taxpayer is required to register for VAT if their turnover exceeds €49,790 over the last 12 consecutive months. Under the new rules, a taxpayer will become VAT-liable if their turnover reaches €50,000 in the current calendar year. Additionally, a new turnover threshold of €62,500 has been introduced, after which a taxpayer will automatically be subject to VAT.

Entities providing VAT-exempt financial, insurance, and real estate rental services will now be required to register for VAT purposes. However, they will not be obliged to submit VAT returns or control statements unless they engage in other taxable activities.

The amendment also affects VAT registration for foreign taxpayers. Foreign businesses without a registered office or permanent establishment in Slovakia will be required to register for VAT if they conduct VAT-taxable transactions within the country. Small businesses with a permanent establishment in the EU, holding a Slovak VAT identification number with the suffix “EX,” will have the option to opt-out of VAT registration.

Other changes include new regulations on financial leasing, VAT deduction based on non-invoice documents, penalties for delayed VAT registration, invoicing requirements, special schemes for small businesses, and the reverse charge mechanism for goods imports.

These changes aim to streamline VAT procedures, enhance regulatory control, and ensure compliance with EU directives.