VAT Returns & Recovery in Slovakia
In Slovakia, the standard tax period is monthly, necessitating businesses to submit VAT returns twelve times annually. However, under certain conditions, businesses can opt to submit their VAT returns quarterly, reducing the frequency to four times a year.
Read more about VAT recovery and VAT returns in Slovakia in our comprehensive guide below.
VAT Returns in Slovakia
VAT returns can be filed through the e-portal of the Slovak tax authorities, using their electronic filing system. For successful submission, the VAT return, EC Listing, and the Cumulative Statement must all be in .xml format.
Payments can be made via bank transfer to the unique International Bank Account Number (IBAN) allocated to the taxable entity and must include a specified variable to identify the tax and the relevant tax period. A VAT payment is deemed as timely if it is debited from the taxable entity’s bank account on the stipulated due date.
Filing deadlines
The deadline for filing a Slovak VAT return is 25 days from the end of the taxable period, which is usually monthly, for most taxable persons, except for those with de minimis income. Nontaxable individuals are required to file a return within 25 days from the end of the calendar month in which the VAT liability arose. However, if the VAT liability is less than five euros, there is no requirement to file a return.
Corrective returns
Amendments to VAT returns, EC Listings, and Cumulative Statements are permissible in Slovakia. The Tax Authority mandates that Supplementary Returns be submitted by the end of the month subsequent to the discovery of any discrepancies. In instances where the corrected VAT return indicates that the VAT due is higher than the amount initially paid, the outstanding VAT liability becomes due on the same day as the submission of the supplementary VAT return.
Selling in Slovakia?
VAT Returns in Slovakia
Interests and Penalties
Individuals who fail to comply with their VAT obligations, including incorrect tax returns, may be subject to penalties imposed by the Slovak Tax Authority. These penalties are typically based on the amount of tax owed, meaning they are “tax-geared.” It is generally difficult to negotiate or mitigate these penalties with the authorities.
Penalties are the following:
- Late VAT registration: If a taxpayer fails to register for VAT within the specified time, they may be charged a penalty ranging from 60 euros to 20,000 euros. However, no interest is added to this penalty.
- Late payment of VAT: If a taxpayer fails to pay the VAT due on time, no penalty is imposed, but they will have to pay interest of 15% per year on the overdue amount.
- Underpayment of VAT: This refers to a situation where a taxpayer declares lower VAT due in their tax return than they should have.
In such cases, the following penalties may be imposed:
- Flat penalty of 10% per year of additionally assessed VAT if the VAT liability is increased due to tax audit findings.
- Flat penalty of 7% per year of additionally assessed VAT if the supplementary tax return is filed within 15 days of the tax audit commencement.
- Flat penalty of 3% per year of additionally assessed VAT if the supplementary tax return is filed voluntarily, without any tax audit rephrase.
Download the Slovak VAT Guide
VAT Recovery in Slovakia
VAT payers may be eligible for a credit or deduction on Slovak VAT paid for certain purchases, commonly referred to as “input VAT”. This credit can be used to reduce the total amount of VAT owed during a given period, and in some cases, it can even result in a negative balance.
Input VAT is deductible if certain conditions are met:
- The recipient and supplier of the goods or services, or the person acquiring or importing them, should be registered as taxable entities.
- The transaction must be related to the recipient’s business or economic activity.
- The claimant must possess sufficient documentation, such as invoices, to prove the input tax that has been incurred
If a taxable entity complies with all conditions stipulated by the tax authority, the input VAT should be offset against the output VAT or the VAT payable to the business. Any remaining input VAT can be reclaimed from the tax authority, and the VAT payer can apply for a VAT refund.
To claim such a refund, a foreign business situated in another EU Member State must:
- Submit the VAT refund application online through the electronic portal of the home state of the business, in line with the terms of Council Directive 2008/9/EC of February 12, 2008.
- File the VAT refund application within the timeframe specified in the EU Directive: • By September 30 of the calendar year following the refund period, if the VAT value exceeds EUR 50. • At any time during a period of at least three (3) months, if the VAT value exceeds EUR 400.
- Provide the supplier’s information, including name, VAT registration number, invoice number, and VAT amounts stated on the invoice.
- Attach and submit electronically a digital copy of the original invoices or import documents. This is mandatory for invoices with a net amount exceeding EUR 1,000 or EUR 250 in case of fuel expenses. The scans must be submitted in the same order they are entered line by line.
- Provide the claimant’s name, contact details, and other necessary information, including bank details in IBAN and BIC format.
Foreign companies based outside of the EU
In Slovakia, VAT refunds to non-EU businesses are governed by the principle of reciprocity. This implies that businesses not based in the EU can claim VAT refunds, provided that these businesses’ home countries also permit Slovak businesses to claim VAT refunds within their jurisdictions. While a publicly accessible list of eligible countries is not available, the tax authorities can provide this upon request from the non-EU business.
Last Updated: 13/12/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
