According to the Slovak Value Added Tax (VAT) Act, domestic individuals are obliged to register as VAT payers under §4, §7, and §7 letter (a) of Act No. 222/2004 Coll. (hereinafter referred to as the ‘VAT Act’). In this article, we will discuss: (a) what Slovak voluntary registration as a VAT payer under §4 entails, (b) the conditions you must meet to register as a VAT payer in Slovakia, (c) who is eligible for registration, and (d) how long the registration process takes and what the procedure entails.
Mandatory VAT Registration (Exceeding Turnover).
Under § 4 of the slovak VAT Act, there are two types of VAT registration:
(i) The first is called mandatory VAT registration after exceeding the turnover,
(ii) the second is voluntary VAT registration without exceeding the turnover.
Mandatory registration is not the subject of this article, so I will only briefly mention it. You have an obligation to register as a VAT payer under § 4 para. 1 of the VAT Act if you are a domestic taxable person and have achieved a turnover of €49,790 or more in the last 12 consecutive calendar months.
It is necessary for you to have your registered office in Slovakia or establish a permanent establishment here. If you are a natural person and do not meet this condition, it is sufficient to have your residence in Slovakia or to habitually reside here. If you meet the above conditions, you are required to register as a VAT payer no later than the 20th day of the calendar month following the month in which you exceeded the turnover.
Voluntary VAT Registration in Slovakia (Without Exceeding Turnover).
If you have not exceeded the turnover threshold for mandatory VAT registration, which is €49,790, and you still want to become a slovak VAT payer, the law allows you to apply for registration under § 4 para. 2 of the Slovak VAT Act. In simple terms, you have the right to apply for tax registration even if you have not exceeded the turnover for mandatory registration. However, this does not mean that you have a legal entitlement to be registered as a VAT payer. First, you must meet the legal conditions for voluntary registration.
Slovak voluntary registration can also be requested by a person who has not yet conducted any taxable transactions but, due to their future economic activities, it is necessary for them to have the status of a taxpayer.
What Are the Conditions for Voluntary VAT Registration in Slovakia?
In addition to submitting an application for voluntary registration in Slovakia, the most important condition for a favorable assessment of the application by the tax authority is that the applicant must be a so-called taxable person within the meaning of § 3 of the Slovak VAT Act. A taxable person, for the purposes of the VAT Act, is defined as any person who independently carries out economic activities, regardless of the purpose and results of these activities.
Another important condition for a favorable assessment of the application is that the applicant engages in economic activity. The term economic activity, for the purposes of the Slovak VAT Act, primarily refers to systematic activities that generate income and includes the activities of producers, traders, and service providers.
To simplify the above conditions, for a positive assessment of an application for VAT registration in Slovakia, you need to be able to prove to the tax authority that, as an applicant for voluntary VAT registration, you are engaged in economic or business activity. This means that you supply goods or services to your clients or business partners. This is typically demonstrated through various documents such as (a) bank statements, (b) accounting records – received and issued invoices, (c) contracts with business partners, and so on.
What conditions must a newly established company meet to become a voluntary VAT payer in Slovakia?
As I mentioned earlier, a person who has not yet conducted any taxable transactions can also apply for voluntary VAT registration in Slovakia. However, due to their future economic activities, it is necessary for them to have the status of a taxpayer. If you are a newly established company in Slovakia and you are interested in registering for VAT in Slovakia, you should be able to demonstrate the intention to carry out economic activities and support this intention with objective evidence. Such evidence may include, for example, initial investment costs incurred for the purpose of doing business, or demonstrating preparations for business.
In other words, you should be able to provide documents that prove your intention to start carrying out economic activities in Slovakia. For example: how you are preparing for business; where you have your registered office and premises designated for business; whether you will have employees; a list of future business partners; the estimated turnover, and so on.
Do You Have the Right to Voluntary VAT Registration in Slovakia?
If, as an applicant for VAT registration in Slovakia, you are not engaged in economic activities, and the evidence you have provided insufficiently demonstrates your intention to carry out economic activities, you cannot establish your status as a VAT taxable person. If you, as an applicant for registration, have not sufficiently demonstrated your intention to engage in economic activities and, therefore, the fact that you are a taxable person, the tax administrator, after evaluating all the evidence in the context of the VAT registration application, will not approve it. Therefore, you do not have a legal right to VAT registration unless you can credibly establish your status as a taxable person, someone engaged in economic activities or preparing for them.
What is the Procedure and Where to Submit a Request for Voluntary Registration in Slovakia?
To submit a request for voluntary VAT registration in Slovakia, you need to fill out the appropriate form on the Financial Administration portal. If you are a business owner, the request must be submitted electronically. In the catalog of electronic forms under the “Register” section, you will find the form titled “Application for registration, notification of changes, application for cancellation of registration for income tax, value-added tax, and insurance tax.” After completing the form correctly, you will submit it to the tax office, which will assess your request. Ideally, you should attach documents that prove you meet the conditions for VAT registration. Therefore, include all the documents that demonstrate your economic activities and your status as a taxable person (bank statements, bank account contracts, received and issued invoices, contracts, and more).
How Long Does Voluntary VAT Registration in Slovakia Take?
If the tax office finds that the applicant meets the conditions for positive assessment of the request for voluntary registration, they will register the applicant and issue a registration certificate for tax purposes, along with an identification number for tax purposes. The tax office will complete the registration process no later than 21 days from the date of receiving the request for tax registration. The date specified in the tax registration certificate is the date when the taxable person becomes a VAT taxpayer.
Autor: Mgr. Dominik Ondrišeje
Dominik is the CEO and co-founder of the SetupMART project. Dominik is responsible for corporate services and implementation of modern technologies in our services at SetupMART. Dominik is dedicated to the sale of ready-made companies since 2011. Dominik studied law at the Pan-European School of Law.