VAT Number Verification SK and EU

VAT rules across the EU and in Slovakia are largely the same. However, Slovakia does differ in some aspects. For one, Slovakia adds VAT to the sale of goods and services, as well as to the purchase of goods from abroad. VAT payers are then responsible for paying VAT as an indirect tax into the central government budget. They have to submit a so-called VAT Control Statement, providing specific documents as tax evidence. In Slovakia, the VAT payer also has a VAT number (IČ DPH) for VAT reporting, and they must declare certain transactions. In most cases, the supplier pays VAT, although there are exceptions when the buyer pays VAT.

In 2023, the annual turnover limit for mandatory VAT registration is EUR 49 790. Turnover periods are for the last 12 consecutive calendar months. Also, regardless of turnover, foreign entities in Slovakia must register for VAT if they plan to supply goods or sell services in the country. The same is true for buying goods from EU countries outside of Slovakia. Note that this excludes transactions between Slovak businesses within the country. It also excludes renting real estate within the country to a Slovak business.

In 2023, there are two standard VAT rates in Slovakia. These are:

• The basic VAT rate - 20%

• The reduced VAT rate - 10%

Note: There is also a change including a new 5% reduced VAT rate, which applies to specific cases of rental housing.

A recent change to the reduced 10% VAT rate now makes it applicable to some sport and restaurant related services. Other reduced 10% VAT rates apply for example to:

• Books, newspapers, and magazines (under certain conditions)

• Some food goods (certain meats, dairy products, vegetables, fruit, etc)

• Certain accommodation services

• Select medicines and medical supplies

• Social economic services

• Restaurant, catering, and sports related services with a high energy demand

Note: See the complete list of reduced 10% VAT rate goods and services in the VAT Act (Annexes 7 and 7a).

Sometimes, it makes sense to voluntarily register as a VAT payer, even if not required by law. For example, you might buy products or services from VAT payers more often than you sell to them. If this is the case, you can technically enable buyers to access your products and services at a lower cost by registering as a VAT payer. In this way, the buyer can claim VAT back, effectively lowering their costs. Another reason you might pay VAT voluntarily could be buying products at a standard VAT rate and selling at reduced rates. It might also for example be when purchasing valuable assets to later claim VAT on.

For a foreigner to register as a VAT payer, they must submit an application of registration at the Bratislava Tax Office. The office then has 7 days from the date of the application to register the foreigner. All applicants can register via post, electronically, or in person. They must also submit:

• A foreign business register extract, or an extract from a similar business register (officially translated to Slovak, or originally in Czech)

• A power of attorney if applicable (also in Slovak language)

Note: See the complete list of reduced 10% VAT rate goods and services in the VAT Act (Annexes 7 and 7a).

VAT payments are due at the conclusion of each tax period. Depending on the VAT payer and their obligations, tax periods are either a calendar month, or a calendar quarter. All VAT returns are then due no longer than 25 days from the end of the taxable period. The VAT payer must account for and send each payment to their corresponding account number, and must file electronically.

If you want to deduct VAT payable for incoming supplies to Slovakia, the VAT refund is one of the most common ways. Further, foreign entities are also eligible to apply for a refund on any VAT they paid. The foreign entity does however need to either be purchasing select goods and services in Slovakia, or importing goods into the country. Further, all applicants must:

• Apply electronically via the portal from their country;

• Submit no later than 30 September of the taxable year following the refund period;

• Provide a copy of the invoice or import document (if the VAT base is EUR 1,000 or higher, or EUR 250 or higher for a fuel purchase import).

Official info through the Financial Administration EU nationals can check the Slovak Financial Administration website for up-to-date information to register for VAT.