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October 23, 2024
2024-1947

Slovakia increases VAT rate

  • Effective 1 January 2025, the standard Value Added Tax (VAT) rate in Slovakia will increase from 20% to 23%.
  • From the same date, the reduced VAT rate of 10% will be abolished and a new reduced rate of 19% will apply.
 

An amendment to the Slovakian VAT Act, which the President signed on 18 October after the amendment had passed Parliament, increases the general VAT rate from 20% to 23% from 1 January 2025. At the same time, the reduced VAT rate of 10% will cease to exist. Instead, a new reduced 19% rate is being introduced. The second reduced VAT rate of 5% remains in place.

Goods taxed at the reduced rate

The law also establishes a list of goods and services to which the new reduced tax rates will apply. Examples include (this list is not exhaustive):

  • 5% VAT applies to basic foodstuffs, medicines, medical devices, hotel services, books and printed materials, fitness centers, sports events and catering services consisting of food preparation
  • 5% VAT applies to supplies of rental housing
  • 19% VAT applies to foodstuffs other than basic foods, electricity and catering services consisting of serving nonalcoholic beverages

Correcting errors for supplies that straddle the change in rate

If, after 31 December 2024, an event occurs that requires a correction to the tax base and the VAT on the supply of goods or services for which the tax became chargeable before and after that date, the VAT rate applicable at the time of the tax liability shall be used for the correction of the tax base and the tax. For each tax liability incurred, the taxpayer must calculate the amount of corrected VAT based on the amount to which the reduced tax base applies.

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Contact Information

For additional information concerning this Alert, please contact:

Ernst & Young, s.r.o. (Slovakia), Bratislava

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor
 

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