Three major changes brought by draft amendment to the Slovak VAT Act

The Slovak Ministry of Finance introduced a draft amendment to the Slovak VAT Act bringing three major changes which are proposed to be effective from 1 January 2021 (except for the deadline for registration for special schemes which is proposed to be effective from 1 October 2020):

• Introduction of new rules for taxation of cross-border supplies of goods (distance dales) and services supplied to persons other than taxable persons that include i. a.:
  • Cancellation of VAT exemption upon importation of consignments not exceeding the amount of EUR 22,
  • Extension of use of the OSS – One Stop Shop,
  • Introduction of IOSS (Import One Stop Shop) for imported goods up to a value of EUR 150 and a simplification mechanism where the IOSS is not used,
• Introduction of correction of tax base upon total or partial non-payment of consideration for supply of goods or services (subject to stipulated conditions) and related obligation to correct input VAT deducted,
• Extension of the options to prove the export of the goods outside the EU.

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