Indirect tax ebook - Slovakia

Reporting and filing

Domestic/Foreign person identified for VAT purposes
Monthly VAT returns must be filed if annual turnover exceeds EUR 331,939.19. In case turnover for the previous calendar year is less than EUR 331,939.19, VAT payer is obliged to file VAT returns for the calendar quarter.

VAT payer with turnover below EUR 331,939.19 may opt for submission of VAT returns on monthly basis. VAT returns must be submitted within 25 days after the end of a tax period and the due tax must be paid within the same time limit.

In nowadays, VAT payer can file VAT returns in paper format via post or electronically.

Since 2013 each VAT payer will be obliged to file documents with the tax authorities only in electronic format by using of:

• a guaranteed electronic signature
• written agreement on electronic delivery of documents concluded with the VAT payer and the tax authority.

Importers
VAT is levied on import of goods from outside the EU, unless they fall within one of the reliefs.

An import occurs where:

• goods are imported directly into Slovakia from a place outside the EU and entered for free circulation; 
• goods that are imported from outside the EU and have been placed in the Slovak warehousing regime are removed from the warehouse for free circulation; or 
• goods that have been imported from outside the EU into another member state have, under a suspension regime, been brought to Slovakia and are then entered for free circulation.

VAT on import is payable by person regarded as the importer for customs duty purposes, or the person who would be so liable if the goods were subject to customs duty.

Subsequently, when filing a periodic VAT return, entrepreneurs importing goods into Slovakia in the course of their business may, as a general rule, recover the VAT paid upon importation as input VAT.

Tax representative for the import of goods
The import of goods to Slovakia from a non-EU country can be VAT exempt in case a dispatch or transport of the imported goods ends in the another EU member state.

If an importer is a foreign taxable person who is not a Slovak VAT payer, he can opt a tax representative who will represent him in Slovakia.  In such case the foreign taxable person does not have to register for VAT purposes in Slovakia and the tax representative applies the exemption from VAT on import of goods.

New means of transport
If a new means of transport is supplied from another member state to Slovakia it is liable for acquisition VAT in Slovakia. If a Slovak taxable person delivers a new means of transport from another EU member state they need to account for acquisition tax in the ordinary way. For Slovak taxable person not registered for VAT in Slovakia the same as above applies and VAT is still due on the acquisition of a new means of transport.

All persons delivering a new means of transport in Slovakia from another member state must issue an invoice.

EC sales list
The VAT payer will be obliged to submit EC sales lists in case he makes:

• intra-community supplies of goods from Slovakia to another EU member state
• intra-community movements of goods from Slovakia to another EU member state
• triangulation simplification as the first receiver of supplied goods
• supply of services with the place of supply in another EU member state

The VAT payer is obliged to submit EC sales list for calendar quarter if the value of goods does not exceed EUR 100,000 in the respective quarter and the four previous concurrent calendar quarters. In case this law limit is reached, the VAT payer must submit a monthly EC sales list.

EC sales lists must be submitted no later than within 20 days after the end of the period to which they relate. EC sales lists must be filled only electronically with using of the guaranteed electronic signature.

Intrastat
Where the VAT payer imports goods from other EU member states or delivers goods to other EU member states, they must submit the Intrastat declaration when they reach a certain threshold. The thresholds are separately monitored for import of goods and export of goods.

There are two types of form:

• a  simplified declaration (threshold for outbound transactions is EUR 400,000; and for inbound transactions EUR 200,000)
• a  standard form (threshold for outbound transactions is EUR 1,700,000; and for inbound transactions EUR  600,000).

VAT refund
Slovak VAT payer - will obtain VAT refund in case excess deduction on VAT cannot be deducted from the tax obligation in the following taxation period. The Tax Authorities should refund such excess deduction within 30 days after the expiration of following VAT period. In case VAT payer meets some “special” law conditions, the Tax Authorities should refund VAT within 30 days from the day of expiration of the time limit for the filing of VAT return.

Foreign VAT payer (not registered for VAT purposes in Slovakia) from another EU member state - can claim VAT through a request on VAT refund which must submitted electronically to the Tax Authorities in domestic country of the foreign VAT payer. The deadline for filing the VAT refund for the previous calendar year is 30 September of the following calendar year. Period for VAT refund must not be longer than one calendar year and the total amount of VAT refund must be at least EUR 50. However, under some circumstance there is a possibility to claim VAT refund for shorter period than one calendar year.

Foreign entities (not registered for VAT purposes in Slovakia) from Non-EU states - who are registered for VAT or similar tax in residency countries can submit a written request on VAT refund to the Tax Authorities Bratislava. Deadline for submission of the request on VAT refund for the previous calendar year is by 30 June of the following calendar year. The total amount of VAT which can be claimed is EUR 50. Slovak VAT may be refunded only to those entities from non-EU states which have concluded reciprocity agreements with Slovakia.

Penalties
A system of penalties exists to discourage failure to comply with the VAT system. Administrative penalties are generally either:

• Penalties
• Penalty interests

Penalties and penalty interests are charged by the Tax Authorities via an official decision.

Failure to register for VAT
If the taxable person does not meet the obligation to register for VAT in given time frame, the tax authorities may impose penalty; a minimum of EUR 60 and a maximum of EUR 20,000.

Late VAT returns or payments of VAT arrears
Failure to submit VAT returns on time is subject to the penalty between EUR 30 and EUR 16,000.

Late payment of any VAT arrears results in penalty interest charge to the amount of four times the discount rate of the European Central Bank for each day of delay, beginning with the day following the due date until the date of payment.

Incorrect VAT returns or supplementary VAT returns
Incorrect VAT returns or errors attract penalty charges to the amount of three times the discount rate of the European Central Bank. This penalty is charged from the positive difference between the tax stated in the tax return and the tax identified by the relevant tax authorities.

If the VAT payer identifies the difference themselves and file a supplementary VAT return, the penalty will be imposed in half.

Note: Generally the penalties should be calculated as mentioned above, however if the 3 x ECB discount rate does not exceed 10%, the base for penalty will be 10%.

Similarly if the 4 x ECB base rate does not exceed 15%, the base for penalty interest will be 15%.

• Introduction
• Scope
• Registration
• Tax rates
• Reporting & filing
• General tax application/Time of supply
• Other local requirements