Amendment to the Act on VAT in Slovakia | Tax & Fiscal Alert
Hereby, we would like to draw your attention to the latest Amendment to the Act No. 222/2004 Coll. on VAT that was signed by the President of the Slovak Republic on 25th July 2014.
The amendment comes into force starting only from 1 January 2015. However, some of the provisions are becoming effective as of 1 October 2014.
Determination of the place of service delivery
The main change of the amendment concerns telecommunication services, television and radio broadcasting services and electronic services.
As of 1 January 2015, if these services are provided to non-taxable persons the place of delivery will be a place where the service recipient is established, has his permanent seat or usually resides.
The new provision is implemented in Slovak Act based on EU VAT Council directive and will be harmonized in the whole EU.
The new determination of the place of delivery of the respective services may result in increase of administrative burden of entrepreneurs – the service recipients can be established in whole EU what may result in the obligation of suppliers to register for VAT in all member states.
In order to cut down the additional administrative burden so-called Mini One-Stop-Shop was introduced by the amendment. This special tax administrative regime means that suppliers providing the above-mentioned services in EU are not obliged to register themselves for VAT purposes in all member states - where the service recipient comes from or where the place of delivery is. Suppliers of the above-mentioned services fulfill their tax obligation by submission of only one tax return via a web portal in a member state in which they identify themselves for this purpose (so-called member state of identification).
The tax return will be submitted on quarterly basis in the member state of identification and by electronic means only. Please note that the obligation to pay attributable tax will be connected to the submission of the tax return.
The tax return together with the paid tax will be then transmitted by the member state of identification to the corresponding member state of the consumption by electronic means.
The VAT rate will not change as of January 2015 and stays at the amount of 20%.
EC Sales List
The current valid provision enables to submit an EC Sales List quarterly if the limit of supplied goods to other EU member states in the respective quarter does not exceed the amount of EUR 100 000.
The newly introduced amendment decreases the limit of supplied goods from EUR 100 000 to EUR 50 000.
Please note that this change comes into force as of 1 October 2014.
By registration under § 4 the period for the Tax Office to perform the registration will be shortened from current 30 to 21 days.
VAT Ledger Statement
VAT Ledger Statement must be submitted within 25 days after the end of respective taxable period. It does not have to be submitted at the same day as VAT return anymore.
So-called blacklist of unreliable tax payers
The period during which a taxpayer is published on so-called “blacklist” will be shortened from 12 months to 6 months.
Partial tax audit protocol
The amendment also introduced so-called partial tax audit protocol.
Under the new concept of partial protocol, the Tax Office will be entitled to refund a part of excessive VAT deduction to which a taxpayer is entitled, and this even before the proper end of tax audit.
The tax payer can be entitled to the partial tax audit protocol only when:
is not published on so-called blacklist of VAT payers
the tax inspection is not conducted upon requirement of law enforcement authorities