VAT News (Amendment No. 102/2024 Coll.) – Part 2
Recording and Reporting Obligation
Effective from May 17, 2024, the day the amendment was declared in the Collection of Laws, domestic payment service providers will be required to adhere to new recording and reporting obligations. These entities must provide records upon the tax authority’s request, no later than within the deadline specified in the tax office’s notice. A penalty is also introduced for failing to meet this obligation.
Social Enterprises and Reduced VAT Rate
From July 1, 2024, conditions regarding the status of the service recipient and the competition disruption test will be removed for the application of the reduced VAT rate of 10% by the registered social enterprises.
Exemption of Services Supplied to Members under Article 32
The option to apply a service exemption for services supplied to its members by a legal entity (so-called cost-sharing associations) will be narrowed to a smaller circle of persons. Until June 30, 2024, the exemption applies as well to members providing exempt financial services, insurance services, or real estate transactions, selling postage stamps, and operating lotteries. From July 1, 2024, these entities will no longer benefit from exempt supplies from organizations they are members of.
Financial Leasing
From January 1, 2025, financial leasing will be considered a supply of goods rather than a supply of services in more situations. Unlike the current regulation, it will not be necessary for the contract to stipulate that ownership passes to the lessee upon payment of the last installment. It will suffice if, under “normal circumstances,” ownership passes to the lessee upon payment of the last installment.
Reverse-charge to Import of Goods from July 1, 2025
Long-awaited reverse-charge with respect to imported goods will be available to a VAT payer established in Slovakia, in whose name the customs declaration is submitted. The VAT payer must have a VAT ID according to § 4 or § 4b and an effective permit granting the status of an Authorized Economic Operator at the time of tax liability for the import. Reverse-charge can first be applied to goods imported after June 30, 2025.
Reverse-charge to Import of Goods from January 1, 2026
Reverse-charge with respect to imported goods will be available to a VAT payer in whose name the customs declaration is submitted within centralized customs procedures if they have a VAT ID according to § 4, § 4b, or § 5 and an effective permit granting the status of an Authorized Economic Operator at the time of tax liability for the import.
Unauthorized Application of Reverse-charge for Import of Goods
VAT payers applying reverse-charge for imports must calculate the import VAT and report it in their tax return. Unauthorized application of reverse-charge for imports may result in a penalty of up to 1.3% of the tax amount.
Invoicing
The right to deduct tax on goods acquired in Slovakia from another EU country after January 1, 2025, can be claimed with other documents than invoice, certifying the acquisition and the creation of the tax liability in the relevant tax period.
From the same date, the value for issuing a simplified invoice from e-cash registers and fuel dispensers will be reduced to 400 euros (currently 1,000 euros for e-cash registers and 1,600 euros for fuel dispensers).
If a VAT payer does not have a VAT ID but he fulfills the registration obligation within the legal deadline, the 15-day invoice issuance period after the supply of goods or services will not apply. Instead, a 5-working-day period from VAT registration will apply.
Theft of Goods from January 1, 2025
The amendment replaces the term “theft” with “unlawful appropriation of goods by another person.”
Cultural, Artistic, Sports, Scientific, Educational, Entertainment, and Similar Services from January 1, 2025
Place of Supply for B2B Services
From January 1, 2025, the place of supply for B2B services related to entry to cultural, educational, sports, and other events, including ancillary services, will change to the location where the taxable person has their seat or place of business or establishment if their participation in these events is virtual (according to § 15 para. 1).
Place of Supply for B2C Services
The place of supply for B2C services, if these services are broadcast or otherwise virtually made available, will change to the location where the customer has their seat, residence, or usual place of stay.
