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Draft amendment to the Slovak VAT Act | May 2017

The Slovak Ministry of Finance introduced in May 2017 a draft amendment to Act No. 222/2004 Coll. on VAT as amended.

The following major changes are proposed to be effective from 1 January 2018:

  • Conditions for application of triangular simplification as regards the status of the first customer will be changed;
  • VAT payers will be obliged to refund input VAT deducted from the payment paid prior supply of goods or services should the goods or services be not supplied or provided to them as at the deregistration date;
  • The limitation for application of “domestic reverse-charge” (tax base in the invoice amounting to or exceeding the amount of EUR 5,000) upon supply of particular kind of agricultural crops and metals will be cancelled;
  • The Tax Authorities will be allowed to refund prior to opening a tax audit part of the excessive deduction should they, based on the data reported in the VAT Ledger Statement, have no doubts as regards the amount to be refunded;
  • VAT payers will be obliged to adjust the input VAT deducted (via capital goods scheme) also with respect to purchase of any construction, not only buildings;
  • Suppliers will be allowed to issue a summary invoice also for the lease and supply of electricity, gas, water or heat for the period up to 12 calendar months provided to the customer not seated in Slovakia;
  • A deposit upon VAT registration will be payable to the Tax Authorities also if the applicant is an individual or a legal entity that has a tax underpayment amounting at least to EUR 1,000 or has been deregistered for VAT purposes as he has repeatedly breached his administrative obligations;
  • Persons registered according to Article 7 or 7a of the Slovak VAT Act will be obliged to file an EU Sales List should they take part in a triangular transaction as the first customer;
  • The application of the special scheme for travel agents will be changed; thus, the customers, VAT payers, will not be allowed to claim input VAT deduction from purchase of travel services.
     

We will keep you informed on the next steps within the legislative process.

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