Parliament has approved an amendment to the value added tax (VAT) law that generally will become effective January 1, 2025, with certain provisions effective from July 1, 2025.
The amendment introduces significant changes in the claiming of input VAT deductions and the adjustment and correction of deducted input VAT, including:
- Clarification of the definition of “investment property”
- Introduction of the concept of “first use”
- Expansion of situations in which there will be an obligation to correct or adjust deducted VAT
- Changes in the rules and method of correction and adjustment of deducted VAT
The amendment also includes:
- Several clarifications and adjustments in the changes in VAT registration as well as in special scheme for small enterprises, which were introduced by last amendment to the VAT law (read TaxNewsFlash) and which will be effective from 1 January 2025
- 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
- The deadline for submission of an application for refund of VAT will not be postponed to the next working day if it falls on a weekend or holiday
Read a December 2024 report prepared by the KPMG member firm in Slovakia