19 December 2017

Ten major changes resulting from the Amendment to the Slovak VAT Act

On 19 December, the President signed an amendment to the VAT Act, which was approved by the National Council of the Slovak Republic at the beginning of December.

Zuzana Šidlová

The main changes can be summarized as follows:

  • Conditions for application of triangular simplification as regards the status of the first customer will be changed;

  • VAT payer who decides to opt for taxation of supply of an immovable property will be obliged to announce this decision to the customer in writing, within the deadline for issuance of the respective invoice;

  • 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;

  • 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;

  • 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 possibility to appoint a tax representative will be extended also to foreign persons acquiring the goods from another EU Member State in Slovakia for the purpose of its intra-community sale, export or distance sale, provided the place of supply of such sale is in another EU Member State;

  • 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 updated about the next steps in the legislative process.

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