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Slovakia: Parliament considers proposed legislation to amend VAT law, reduce excise tax on fuels

Proposed VAT amendments include expansion of goods eligible for reduced VAT rates, general reduction in VAT rate, higher registration thresholds

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February 27, 2025

The Parliament on January 15, 2025, considered four draft bills amending the value added tax (VAT) law that would expand goods eligible for a reduced VAT rate, reduce the standard VAT rate from 23% to 20%, and increase thresholds for mandatory VAT registration for businesses. The proposed changes are expected to be effective from July 1, 2025, pending the bills' passage through Parliament, presidential approval, and publication in the Collection of Laws.

In addition, the Parliament on January 17, 2025, proposed a draft bill to reduce the excise tax on unleaded motor fuels and diesel fuels effective from July 1, 2025, until December 31, 2026, staying within the minimum taxation levels permitted by EU law.
 

For more information, contact a KPMG tax professional in Slovakia:

Marek Masaryk | mmasaryk@kpmg.sk

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