Do you know what comes with buying a new car from another EU member state?

What is meant by "new means of transport"?

According to the Slovak VAT Act, a new means of transport is considered to be, inter alia, a motorised land vehicle the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7,2 kilowatts, which is intended for the transport of persons and goods and which meets at least one of the following criteria:

• the vehicle has travelled for no more than 6,000 kilometres, or
• the supply takes place within six months of the date of first entry into service.

When does the VAT liability arise in Slovakia?

When buying a new means of transport from another EU member state, the buyer is obliged to pay VAT in Slovakia.

A person who is not registered for VAT becomes liable for VAT on the acquisition of a new means of transport in Slovakia from another EU Member State on the date of acquisition of the new means of transport.

Thus, VAT liability arises to the buyer on the date of the transfer of the right to dispose of the new means of transport shipped or transported to the acquirer in Slovakia, as the owner.

What do you have to do?

• File a VAT return

The buyer – a person who is not registered for VAT, is obliged to file a VAT return to the locally competent tax authority within 7 days of the acquisition of a new means of transport and pay the VAT within the same time period.

• Pay the VAT

Thus, the buyer (private individual) is not obliged to register as a VAT payer but must file a VAT return and transfer the amount of VAT to the respective account assigned (notified) to them by the tax authority. If that person has not been notified of the respective account number for VAT payment, they are obliged to pay the VAT within 7 days of the date of receipt of that notification.

• Submit enclosures to the VAT return

At the same time, they are obliged to enclose to the VAT return an officially certified copy of the document of purchase of a new means of transport and, upon request of the tax authority, to provide other information necessary for the correct determination of the VAT.

The car purchase invoice itself must be kept. Under the VAT Act, any person who buys a new vehicle from another EU Member State is obliged to keep the invoice for the purchase of the new means of transport for ten years after the year in which the purchase was made.

• Request a VAT payment certificate

Once the VAT has been paid, it is necessary to request the tax authority for issuance of a VAT payment certificate. The issued certificate must be presented by the acquirer when registering the motor vehicle at the Transport Inspectorate of the Police Force of the Slovak Republic.

Similar obligations apply to acquirers of vessels and aircrafts meeting the separately established criteria for a new means of transport under the Slovak VAT Act.