The amended VAT Act proposes abolishing the institute of VAT guarantees as implemented in the VAT Act beginning in 2012. Decisions regarding the pledging of VAT guarantees issued before 31 December 2018 are to be rescinded. The Tax Office shall refund such financial guarantee or a portion thereof by 28 February 2019 under the assumption…
The current definition of turnover specifically uses the terms “income” and “revenue”, which results in unequal conditions for taxpayers who operate under accrual basis accounting (double-entry bookkeeping) and cash basis accounting (single-entry bookkeeping). These terms are replaced by the phrase ”the value of delivered goods and services”, which means that turnover includes the value of…
New VAT rules were defined for the use of vouchers due to a lack of uniformity in the application of the rules to define the place and time of delivery of specific goods and services, the establishment of the tax obligation and the definition of the tax base for transactions involving vouchers. A voucher is…
The amended VAT Act has reduced the VAT rate for accommodation services. The VAT rate is reduced from 20% to the current 10% rate and is applicable to all accommodation services assigned code 55 per the Statistical classification of products by activity (CPA). The following accommodation services are involved: 55.1: hotel and similar accommodation…
A significant change in the VAT Act is the application of a VAT scheme with respect to the delivery of projects and the rental of real estate as well as the definition of the term “initial statutory permitting”. The delivery of projects or portions thereof, including delivery of the building lot (§38 (1)) on which…
The amended VAT Act modifies the rules for the application of the domestic tax liability transfer for transactions involving selected agricultural products, selected metals and metal products. The amended VAT Act valid from 1 January 2018 cancelled the €5,000 limit on the tax liability transfer to the recipient, i.e. a registered VAT taxpayer, of the…
The amended Labour Code introduced a new obligation for employers in the form of providing recreational vouchers and recreation allowances. An employer with more than 49 employees shall be obliged to provide employees who have been employed for at least 24 consecutive months and upon their request, with a recreation allowance of 55% of eligible…
A new act took effect on 1 January 2019 that introduces an insurance tax of 8% covering non-life insurance for insurance risks located in Slovakia. Compared to the original proposal, the new insurance tax will not apply to life insurance. The insurance tax is considered an indirect tax and will be paid by insurers that…
The Ministry of Finance of the Slovak Republic issued an official measure defining the template personal and corporate income tax return forms for the 2018 tax year.
The current templates of the tax return forms are intended for taxpayers filing tax returns by the last day of 31 December 2018 as the final day for filing these tax returns.
Slovakia ratified the OECD’s Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, sometimes abbreviated as BEPS, intended to combat tax base erosion and profit shifting under individual double taxation treaties. The Multilateral Convention is intended to amend all double taxation treaties concluded by Slovakia and enters into force…