Information for clients 10/2024

1. Value added tax (VAT)

ü  Change in the application of VAT deduction from receipts, payment in cash/by card!

From 1.1.2025 ATTENTION-reduction of the value per document made by the e-kasa cash register, the so-called refueling machine. Simplified invoice – value reduction from €1,600 to €400

• Customer impact: If you submit a VAT block with a VAT amount of €401 or more – VAT cannot be deducted from this document. Solution: set up suppliers so that you are issued an invoice for goods/services! The VAT deduction from invoices does not change.

If the payer does not have an assigned VAT number within the regular 15 days to issue an invoice (but has fulfilled the registration/reporting obligation), he will be obliged to issue an invoice within 5 working days of receiving the decision on registration for tax.

ü  Changes in VAT registration

Changes in the rules for registering as a VAT payer from 1 January 2025 for domestic and foreign taxable persons

The new wording of § 4 states that if a taxable person achieves a turnover of €50,000 in the current calendar year, he or she will become a tax payer from 1 January of the following calendar year, unless any of the facts occurs on the basis of which the taxable person becomes a taxpayer before this date (e.g. he becomes the legal successor of a taxpayer dissolving without liquidation, acquires an enterprise or part thereof, etc.). A taxable person can also become a taxpayer immediately, and this decision will need to be marked in the registration form.

The amendment to the Act also introduces a new turnover of €62,500, the excess of which makes the taxable person a taxpayer a taxpayer immediately from the delivery of goods or services that exceed this turnover. Voluntary registration is still possible.

Turnover will be calculated per calendar year instead of a maximum of 12 previous consecutive calendar months.

The obligation to submit an application for registration for tax is established within 5 working days from the date on which the event occurred. Within 10 days, the tax office issues a decision on registration, which is only declarative, i.e. it only confirms the registration of the taxpayer on the day when the event on the basis of which he became a tax payer occurred.

Attention! Providers of exempt financial, insurance and rental services will again be obliged to register for tax, but will not be obliged to file a tax return and a control statement (until they make another supply on which they would be liable to pay tax).

ü  The new regulation for small businesses from 1.1.2025 is an EU obligation, the goal is equal treatment in the EU in terms of VAT exemption from the performance of activities up to a certain turnover.

An annual turnover in the Czech Republic (€62,500 in the current calendar year and €50,000 in the previous calendar year) and an annual turnover in the EU (€100,000) are introduced. Taxable persons – entrepreneurs who do not achieve these turnovers will be assigned a special VAT number with the suffix EX, which will allow them to supply goods and services throughout the EU with tax exemption – i.e. as a taxable person who is not a tax payer. Such enterprises will have quarterly special reporting for domestic and foreign persons applying the Small Business Scheme, as well as the conditions for the start and end of the application.

ü  Financial leasing

In accordance with EU legislation and the settled case law of the Court of Justice of the EU, VAT on financial leasing, if the use of the right of purchase represents the only economically rational choice for the lessee at the time of its conclusion, will represent a supply of goods subject to tax from 1 January 2025, and the tax will have to be paid on the entire value of the lease at the beginning, and not, as before, on individual installments during the entire lease period (based on the previous assessment as a supply of services). The VAT deduction can be applied in a one-off payment, not gradually according to installments. The new wording will apply to contracts concluded after 31 December 2024.

ü  Self-taxation on imports

From 1 July 2025, self-taxation will be available to a taxpayer to whose account a customs declaration is submitted and who, at the time of the tax liability, is responsible for the import of goods:

1. established in Slovakia (i.e. has a registered office, place of business or establishment or residence in Slovakia),
2. registered for VAT purposes in Slovakia (§ 4 or § 4b in the case of group VAT),
3. Authorised Economic Operator (has an effective authorisation conferring that status). The status of an authorised economic operator (the importer has it) is regulated by Articles 38 and 39 of Regulation (EU) No 952/2013 laying down the EU Customs Code; the criteria for granting this status are, for example, the absence of serious violations of customs and tax regulations, a reliable system of recording and control of the flow of goods, financial capacity to pay liabilities on time. A special method of payment of tax on the import of goods under centralised customs procedure is established – if the importer does not meet the conditions for the application of self-taxation (Section 84b). After the release of the goods, the customs office calculates the tax and reports it to the person liable to pay the tax.

A taxpayer who applies self-taxation on import will be obliged to calculate and enter the tax in the tax return for the tax period in which the tax liability arose, and at the same time will be able to claim a tax deduction in the same tax period (provided that the conditions under Sections 49 and 51 are met).

With effect from 1 January 2026, the circle of persons who will be able to apply self-taxation on import will also be extended to foreign persons registered for VAT purposes in Slovakia (Section 5). At the same time, it specifies that self-taxation will only be possible within the institute of centralized customs clearance ("CCK"), and a special method of payment of tax on the import of goods under the CCK is also introduced, if the importer does not meet the conditions for applying self-taxation. In such a case, the customs office will immediately calculate and notify the person liable to pay the tax (Section 69(8)) of the amount of tax that is due within 10 days from the date of its notification.

PLEASE NOTE THE EXPECTED CHANGES:

From 1 January 2026, a mandatory E-invoice is to be introduced. Practical implications Due to the fact that invoicing data must be sent either through certified accounting software or a government portal, the vast majority of entrepreneurs will incur additional costs for integrating their accounting systems by implementing an e-invoice system. However, for small entrepreneurs, the IS EFA brings the possibility of issuing electronic invoices free of charge, through the web online application Virtual Invoice, which is helpful in the preparation and management of invoices in the prescribed electronic format. At the same time, it provides options for automated formal checks of electronic invoices in real time. The challenge for the FRSR within the Virtual Invoice application will be to secure the system against the leakage of sensitive data and the processing of huge amounts of data in real time. For entrepreneurs who use their own software tools, IS EFA offers an open program interface through which entrepreneurs can transfer invoices created in their systems to the electronic invoicing information system without the need for further intervention. However, the implementation of a program interface will represent additional costs for entrepreneurs with their own software tools.

The process of reporting data in the e-invoice system and issuing an invoice:

- Regardless of the system in which the invoice is made (own accounting software or the Virtual Invoice application), the invoice data will be sent to the FRSR after creation.

- The FRSR verifies the invoice in an instant, registers the data from the invoice and assigns an identifier to it, which becomes a mandatory element of the invoice.

- After successful completion of steps one and two, the supplier can send the invoice to the customer.

- On the part of the customer (business entity), the obligation to send the registered incoming invoicing data to the e-invoice system will also be introduced. The customer marks the received invoice for VAT deduction or for inclusion of the invoice in tax expenses.

• The obligation to refund the deducted tax in the event of theft extends to any goods that have been unlawfully appropriated.
• The place of supply of cultural, educational or entertainment services, including access to events and ancillary services, is changed if they are supplied to a taxable or non-taxable person online/virtually.
• In the case of unpaid liabilities, the obligation to refund the deducted tax will arise only in the tax period in which the 101st day from the due date occurred (currently 100 days after the due date).

 2. Corporate Income Tax

ü  Income tax rates for 2024: Taxable income up to 60,000 Euros – tax rate 15% and Taxable income over 60,000 Euros – tax rate 21%

ü  Income tax rates for 2025 : should be:

Taxable income up to EUR 100,000 – tax rate of 10%

Taxable income from EUR 100,000 to EUR 5 million – tax rate 21%

Taxable income over EUR 5 million – tax rate 24%

Personal income tax – self-employed persons – the threshold for the application of the personal income tax rate of 15% is increased from EUR 60,000 to EUR 100,000.

Withholding tax on dividends – reduced from 10% to 7% (as applied to profits for the years 2017-2023). This means that a one-off rate of 10% will be applied to profits made for 2024 and then a rate of 7% again to profits made for 2025.

ü  Minimum corporate tax from 1.1.2024 – exceptions also apply

1. not exceeding the amount of EUR 50,000 in the amount of EUR 340
2. exceeding EUR 50 000 and not exceeding EUR 250 000, in the amount of

960 euros

1. exceeding EUR 250 000 and not exceeding EUR 500 000, in the amount of

€1,920

1. exceeding the amount of EUR 500,000 in the amount of EUR 3,840

More : Informing about the data - PFS (financnasprava.sk)

ü  The National Council of the Slovak Republic approved Act No. 309/2023 Coll. on Transformations of Companies and Cooperatives from 1 March 2024.

1. Transformation – is a common designation under the new legislation for a merger of companies (merger or acquisition) or division of a company (split or spin-off); For this reason, the relevant provisions of the Income Tax Act are also changing conceptually
2. Split – is a procedure in which the company being divided ceases to exist and its capital passes to a legal successor, either to an existing company (division by merger) or to a newly established company (division by merger) or a combination of both forms. The word 'split' in all forms is replaced by the word 'split' in the corresponding form.
3. Spin-off – is a procedure in which the company being divided does not cease to exist, only a part of its capital is transferred to a legal successor according to the transformation project, either to an already existing company (spin-off by merger) or to a newly established company (spin-off by merger) or a combination of both forms.

 

3. The Social Insurance Agency makes electronic accounts available for insured persons – employees

The Social Insurance Agency makes electronic accounts available for insured persons – employees and, in addition to the possibility of arranging access at a branch of the Social Insurance Agency directly to employees, offers the possibility of establishing access for your employees directly at your workplace. Employees can thus get an overview of their social insurance and at the same time they will be able to communicate with the Social Insurance Agency online. Benefits:

• immediate access to information and the possibility of printing it, which he would previously obtain through correspondence with the Social Insurance Agency
• an overview of insurance periods, the possibility to check individual periods of insurance (sickness, pension, unemployment) and their records in the Social Insurance Agency systems
• information for entitlement to benefits and also documents for calculating the amount of social insurance benefit (e.g. sickness, maternity, nursing allowance, unemployment benefit, old-age/early retirement pension, disability pension)
• control of the records of life periods during which the insured person does not pay social insurance premiums, e.g. maternity benefits, carer's allowance.

More information is available by the Social Insurance Agency on their website: Electronic account of the insured person | Social Insurance Agency (socpoist.sk)

 

4. Transaction tax or bank transfer tax from 1.4.2025 – the levy will be monthly

The new law is set to take effect on 1 January 2025, but the tax on financial transactions should be paid from 1 April 2025. This law, as well as others related to the consolidation of public finances, is to be decided in a shortened legislative procedure. A tax with this name also exists in other countries, the Ministry of Finance of the Slovak Republic was inspired mainly by Hungary, where this tax has been in place for a few years.

The current amount of tax per transaction is 0.40%, with a maximum tax amount of €40. Of course, cash withdrawals are also charged. Cash withdrawals are to be subject to a fee of 0.80% of the transaction.

 

5. Motor vehicle tax – an increase in motor vehicle tax for entrepreneurs. Reduction of the motor vehicle tax rate for trucks.

 

6. Tolls and vignettes (change from 1.7.2025) – increase in tolls for trucks. At the same time, an increase in vignette prices was also adopted as follows:

Vignette	Original price	Price after increase
Annual	60 euros	90 euros
Monthly	17 euros	€17.10
10-day	12 euros	€10.80 (price drop)
One-day	€5.40	€8.10

 

7. Parental pension – it will now be paid in the form of tax assignment, while it will be possible to decide whether a working child will give 2% of the tax to his mother or father (only one of them). For 2025, it will be paid in 2026. At the same time, the possibility of donating 2% of the tax to a non-profit organization will also be retained.