Key takeaways
- Slovakia VAT rates: The standard VAT rate is 23%, with reduced rates of 19% and 5% for specific goods and services like food, books, and medical supplies.
- Registration threshold: Resident businesses must register once turnover exceeds €49,790, while non-resident businesses must register from their first taxable activity.
- Filing & penalties: VAT returns are filed monthly or quarterly, with late filings subject to fines up to €16,000 and interest on unpaid VAT.
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 23%, with reduced rates of 19% and 5%. 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.
Frequently asked questions
What is the VAT rate in Slovakia?
Slovakia’s standard VAT rate is 23%, with reduced rates of 19% (for certain food items, electricity, and catering) and 5% (for books, medicines, and medical equipment).
When do I need to register for VAT in Slovakia?
Resident businesses must register once annual turnover exceeds €49,790. Non-resident businesses must register immediately upon carrying out taxable activities, with no threshold. The distance selling threshold is €10,000 under EU OSS rules.
How do I register for VAT in Slovakia?
Applications are made via the Slovak Financial Administration website. The process takes up to four weeks, and you’ll receive a Slovak VAT number (IČ DPH) once approved.
Do I need a fiscal representative in Slovakia?
No. Neither EU nor non-EU businesses are required to appoint a fiscal representative, though some choose to for easier compliance.
How often must VAT returns be filed in Slovakia?
- Monthly – standard frequency for most businesses
- Quarterly – if annual turnover is below €100,000
Returns and payments are due by the 25th of the month following the reporting period and must be submitted electronically.
Are Intrastat declarations required in Slovakia?
Yes. Businesses must file Intrastat declarations for EU trade exceeding €1 million in arrivals or dispatches. Returns are due by the 15th of the following month.
