What brings amendment to the Slovak VAT Act?

The amendment introduces temporary decrease of VAT rate (from 20% to 10 %) for transportation of passengers by cable cars and ski lifts, entrance to sports facilities for sporting purposes and to artificial swimming pools and for restaurant and catering services. This change should be effective from 1 January 2023 and should be applicable by 31 March 2023.

Further, the amendment, to be effective from 1 January 2023 (except for the new reporting obligation of providers of payment services which is to be effective from 1 January 2024), brings the following major changes:

• 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 100 days,
• Changes in correction of tax base upon total or partial non-payment of consideration for supply of goods or services and in related obligation to correct input VAT deducted,
• 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.