Amendment to the VAT Act: Simplifications for Businesses and New Rules for the Digital Economy

The Ministry of Finance of the Slovak Republic has submitted a draft amendment to Act No. Act No. 222/2004 Coll. on Value Added Tax (the “VAT Act”), which primarily responds to the European VAT in the Digital Age (ViDA) initiative, aimed at modernising the VAT system, simplifying cross-border business activities and adapting tax rules to the requirements of the digital economy.

The most significant proposed changes are as follows:

New Rules for Digital Platforms Facilitating Short-Term Accommodation and Passenger Road Transport Services. In certain cases, the platform will be responsible for remitting VAT as a deemed supplier.

Expansion of the One Stop Shop (OSS) scheme, which will enable businesses to fulfil their VAT obligations in several EU Member States through a single VAT registration, and amendments to the special scheme for distance sales of goods imported from third countries, the so-called IOSS.
Introduction of a new scheme for the transfer of own goods between EU Member States and the gradual abolition of the call-off stock arrangements.

Extension of the reverse charge provision for the supply of goods or services within Slovakia where the supply is made by a foreign person not established in Slovakia to another foreign person identified for VAT purposes under Section 5 or Section 7.

Simplification of electronic invoicing by abolishing certain reporting obligations and introducing the so-called tolerance period during the first six months, during which no penalties will be imposed for failure to comply with the obligation to issue an electronic invoice within the prescribed 15-day deadline.

Possibility of extending the VAT registration procedure to 60 days in cases of justified doubts regarding voluntary VAT registration.

Clarification that occasional rental of immovable property is not included in the turnover calculation for VAT registration purposes.

The amendment also clarifies the rules regarding the volume of dietary supplements exempt from the tax on sweetened beverages, with the aim of preventing tax avoidance.

The Tax Procedure Code will introduce the possibility of filing an objection against a notification of the expiry of the right to a refund of VAT or the tax on sweetened beverages.

Effective Date of the Changes:

On the date of promulgation – the provision excluding occasional rental of immovable property from turnover for VAT registration purposes.

January 2027 – amendments concerning voluntary VAT registration, the Tax Procedure Code, the tax on sweetened beverages and electronic invoicing.

July 2028 – a new scheme for the transfer of own goods within the EU, supplies of goods and services with the place of supply in Slovakia to a foreign person, and the expansion of the OSS scheme.