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Summary

Standard VAT rate: 20%
E-Invoicing: mandatory in B2G and G2G, permitted but not mandatory in B2C and B2B
Real-time reporting: eKasa system
Digital service tax: no

Compliance and rates

 

VAT number format

All EU member states have a fixed format for their VAT numbers. In Slovakia, it includes 10 digits and the prefix SK (i.e. SK0123456789).

 

VAT rates

The standard VAT rate in the Slovak Republic is 20%, with a reduced rate of 10% on certain goods and services. A number of services are exempt from Slovakian VAT, such as financial and postal services.

20% (Standard) – Applies to all taxable supplies, with certain exceptions

10% (Reduced) – Medical products, printed materials, and ‘basic goods’ (e.g. milk, butter, meat)

0% (Zero) – Intra-community and international passenger transport

 

VAT payments and returns

Businesses with a Slovakian VAT number must submit periodic payments. VAT filings and payments are submitted either monthly or quarterly.

Any Slovak tax credits should be paid within 30 days, but it typically takes much longer or can be rolled over into the next return.

 

Penalties in case of late filings or misdeclarations

Penalties with the tax law fall into two main categories:

1. Late payment interest on outstanding tax liabilities, which is calculated as an annual percentage of the outstanding amount

2. Fines, up to EUR 32,000 or calculated as a percentage of the underpaid tax. The penalties for noncompliance depend on the length of time that has elapsed since the tax return was filed. The percentage of the fine depends on the form of the assessment of the additional tax (i.e. whether the additional tax is levied during a tax audit or is the result of the filling of an additional tax return).

 
Invoice requirements

The cash invoice made by eKasa client by the cash register must contain:

  • eKasa client cash register code
  • Tax ID (Tax ID)
  • Identification number (organization identification number), if assigned to the entrepreneur
  • VAT ID, if the entrepreneur is in VAT system
  • Entrepreneur’s verification code
  • The date and time of drawing up the treasury document
  • Serial number of the treasury document
  • Unique cashier document identifier
  • Readable QR code
  • The designation of the goods or designation of the service, the quantity of the goods or the scope of the service and the attribution of the VAT rate, except where the VAT payer applies a special arrangement for the application of VAT
  • The price of the goods or the price of the service
  • The business name, registered office or place of business of the entrepreneur and the sales place if different from the registered office or
  • Place of business
  • The VAT base, if the trader is a VAT payer broken down by rate, unless the VAT payer applies a special VAT treatment arrangement
  • VAT rate or VAT exemption figure if the trader is a VAT payer broken down by rate, unless the VAT payer applies a special VAT treatment arrangement
  • The total amount of VAT if the trader is a VAT payer broken down by rate, except where the VAT payer applies a special arrangement for the application of VAT
  • Price rounding
  • The total amount of the paid price.

Penalties for non-compliance with invoicing and accounting obligations

In Slovakia, a lump-sum penalty from EUR 60 up to EUR 3,000 for non-compliance with non-monetary obligations shall be imposed.

 

E-Invoicing

Electronic invoicing is permitted, but not mandatory at this moment.

 

eKasa

Every cash register have to be connected to the Financial Administration systems of the Slovak Republic via the Internet from 1st of July 2019 – eKasa register.

Thanks to the eKasa, Slovakian Financial Authorities will know in real time when you received cash and how much. They will even know the address and exact GPS coordinates if you use portable cash register (smartphone, tablet, or similar).

All this information will serve the financial administration for one purpose – the fight against tax fraud.

Since the financial report will be able to generate various analyzes from your treasury data, this will allow it to identify various anomalies in a timely manner.

 

Who is obliged to use the eKasa system?

The use of the eKasa system is mandatory for all entrepreneurs who accept cash as a payment method for goods and services provided in the territory of Slovakia. This includes restaurants, coffee bars, markets, but also individual entrepreneurs who provide ridesharing services like Bolt or Uber drivers.

Turnkey invoice compliance.

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