Top three changes brought by draft amendment to the Slovak VAT Act

Proposed amendment is planned to be effective from 1 January 2023 (except for the new reporting obligation of providers of payment services which is proposed to be effective from 1 January 2024) and brings:

• Obligation of the VAT payers to correct input VAT deducted from the goods and services purchased in Slovakia provided they are (partially) overdue with the payment for more than 90 days,
• Change in limitation of input VAT deduction – input VAT deduction will not be allowed from the expenditures that do not unequivocally belong to business expenditures, such as for the purpose of treat, entertainment and representation,
• Cancellation of the VAT registration obligation (and introduction of the VAT deregistration possibility) of established entities provided they exceeded the registration turnover solely from specific VAT exempt supplies (insurance and financial services and supply and rent of immovable property).

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