Upcoming changes to the VAT Act in Slovakia

The Slovak Ministry of Finance has introduced a draft amendment to the Value Added Tax (VAT) Act that proposes several major changes, including a lower threshold for issuing simplified invoices. The draft amendment is expected to be effective July 1, 2024, subject to parliamentary approval. According to the current VAT law, a simplified invoice can be issued for supplies of goods or services up to €1,000, excluding VAT. A simplified invoice does not need to contain all the details required for a full invoice, such as the name and address of the customer.

However, the draft amendment proposes to reduce this threshold to €400, excluding VAT. This means that for supplies exceeding €400, a full invoice with all the required details must be issued. The aim of this change is to prevent tax evasion and fraud as well as harmonize the Slovak VAT rules with the EU directive.

The draft amendment also proposes other changes to the VAT law, such as a special scheme for small enterprises, a reverse-charge mechanism for imports of goods, and new rules for correcting VAT deductions and tax bases in cases of unpaid or uncollectible debts. The draft amendment is still subject to further discussion and approval by parliament. The final version of the amendment may differ from the current proposal.