In the previous article we informed you about the most important changes brought about by the currently discussed amendment to the VAT law in Slovakia. Now we are presenting further, no less important changes to the law.
Late registration for VAT
With effect fromJuly 1, 2024, the regulation that regulates late registration for sales tax will be fundamentally changed.
In the event that the taxpayer has not fulfilled his obligation to submit a VAT registration application or has submitted this application late, he is obliged to submit VAT returns and control reports from the first assessment period for which he has not submitted VAT returns within the statutory deadline. The VAT law in forcetoday allowed the taxpayer to submit a single “extraordinary” VAT return in which he reported all these transactions.
This change will significantly increase the administrative burden on taxable entities in the event of late registration. In addition, late submission of tax returns can result in penalties.
With the amendment to the law, from July 1, 2024, the previous tax assessment of the transfer of goods based on rental agreements (or similar contracts) will change, which do not clearly indicate that the acquisition of ownership of these goods is transferred at the latest at the time of payment of the last installment .
The new regulation applies to rental agreements with the negotiated one if, at the time of their conclusion, the use of the purchase option represents the only economically sensible choice for the tenant. Such a delivery is a delivery of goods in which the entire rental value is taxable upon delivery of the goods. Previously, these transactions were considered to be the supply of a service, with VAT deducted from individual installments throughout the rental period.
In this context, leasing companies should, above all, thoroughly analyze the conditions of the leasing contracts on the basis of which they hand over the leased asset to the lessee and re-evaluate the VAT system applied.
Input tax deduction also on the basis of a document other than an invoice
The proposed amendment introduces the possibility of deducting VAT when purchasing goods from another Member State, even on the basis of a document other than an invoice, if the invoice is not available before the VAT return is submitted.
The taxpayer can prove the right to deduct input tax using other relevant documents from the business relationship with the supplier, but must prove the actual purchase of the goods and the amount of the VAT liability. In such a situation, it is necessary to include data from this document in the control report.
Below you will find a few other selected suggested changes:
An additional period of 5 days - in the event that the taxpayer has not been assigned a VAT identification number by the expiry of the deadline for fulfilling certain obligations specified in the VAT Act (issuing the invoice, submitting the VAT return or control report), will be issued to him from the date of delivery of the registration decision, a grace period of 5 days is set for the fulfillment of these obligations.
Unpaid liabilities – it is stipulated that the obligation to refund tax for unpaid liabilities exists only in the tax period in which the 101st day after the due date falls.
Change in the place of performance of services - the rules for determining the place of performance in the provision of defined services provided to a non-taxable person (cultural, artistic, sports, scientific, educational, entertainment and other similar services) are changed, if those services are transmitted online or otherwise made available virtually.
Simplified invoices – the amount from which a document issued via e-cash is considered a simplified invoice is reduced from 1000 euros or 1600 euros to 400 euros.
Theft – it is proposed to extend the obligation to refund VAT withheld in the event of theft to any illegal removal of goods.