The Ministry of Finance introduced the following proposed amendments to the Slovak Value Added Tax (VAT) Act regarding claiming the right for input VAT deduction:
- Precision of definition of the term “investment property” (i.e., exclusion of stock, inclusion of intangible assets, and reduction of value for moveable assets)
- Introduction of the concept of “primary use”
- Broadening of situations in which there will be an obligation to correct or adjust deducted VAT (e.g., for advance payments)
- Changes in the rules and method of correction and adjustment of deducted VAT
- Cancellation of the possibility to deduct VAT from the purchase of fuel up to the amount of flat-rate expenses
The proposed amendments also:
- Contain several clarifications and changes to the VAT registration rules and the special scheme for small enterprises, which were introduced by the last amendment to the VAT Act and which will be effective from January 1, 2025
- Introduce a change in the determination of the VAT base upon personal use or use for other than business purpose or upon free-of-charge supply of goods and services and in payment of VAT upon deregistration as well as upon unlawful appropriation of goods
- Stipulate that provided the deadline for submission of an application for refund of VAT falls on a weekend or holiday, it will not be postponed to the next working day
The amendments are proposed to be effective January 1, 2025 (except for amendments in correction of input VAT deduction upon importation of the goods which is proposed to be effective July 1, 2025).
Read a September 2024 report prepared by the KPMG member firm in Slovakia