Slovak Republic

Value-added tax (VAT)

From 1 January 2025 a basic VAT rate of 23% (previously 20%) applies to all taxable supplies, with certain exceptions. From January 1, 2025, two reduced tax rates of 19% (instead of 10%) and 5% apply (this reduced rate does not change). At the same time, the list of goods and services to which reduced rates are applied is changing.

A general overview of the application of reduced rates is provided below:

From 1 January 2025 taxable persons established in Slovakia will become VAT payers if their annual turnover exceeds the threshold of EUR 50,000 in the current  calendar year. The VAT registration is generally effective from the next calendar year, however if the annual turnover exceeds the threshold of EUR 62,500 the VAT registration is effective immediately. Voluntary registration is also possible. Upon VAT registration, all bank accounts used for business purposes related to Slovak VAT registration have to be announced to the Tax Office.

More taxable persons established in Slovakia (i.e. with a seat, place of business, or VAT establishment in Slovakia) can create a VAT group if certain conditions are met.

From 1 January 2025, foreign taxable persons (no seat or VAT establishment in Slovakia) will no longer be obliged to apply for VAT registration before commencing activities subject to Slovak VAT, but they will become a Slovak VAT-payer upon supply of the goods/services subject to the Slovak VAT (with some exemptions); receipt of the prepayment for the the goods/services subject to the Slovak VAT; receipt of the goods in Slovakia from other EU member state under certain conditions. Notification obligation will be introduced.

There is a list of supplies that foreign taxable persons can perform in Slovakia without a need to register for Slovak VAT, including mainly:

• Supplies subject to VAT reverse-charge.
• Supplies subject to triangulation simplification performed by the first customer in a chain.
• Intra-Community supplies of imported goods if represented by a tax representative.
• VAT-exempt transport and supplementary services related to export and import.
• VAT-exempt supplies without credit entitlement.
• Distance sales to non-taxable person using the One Stop Shop (OSS) scheme.

This list, among others, includes local supplies of goods and specific services to taxable persons established in Slovakia as such supplies are subject to local VAT reverse-charge mechanism (i.e. person liable to pay VAT on such supplies is the customer).

Foreign taxable persons registered for Slovak VAT are not entitled to deduct input VAT via Slovak VAT return if such input VAT relates only to supplies subject to VAT reverse-charge. Foreign companies can claim Slovak input VAT via the VAT refund procedure, provided they meet the stipulated conditions. If the foreign VAT payer that is entitled to a full VAT refund via a specific EU VAT refund application acquires goods in Slovakia from EU countries, its acquisition of goods in Slovakia from another member state is considered as VAT exempt.

Exempt supplies without credit entitlement include, among others, certain postal services, financial and insurance services, education, public radio and TV broadcasting services, health and social services, the transfer and leasing of real estate (with exceptions), and lottery services. There are also exempt taxable supplies with credit entitlement, for example financial and insurance services provided to the customer established outside of the European Union, supply of goods to other EU member states, certain import of goods, and export of goods and services.

A special regime for payment of VAT by a supplier based on receipt of payment for supplied goods or services (‘cash accounting’) is available in Slovakia in very specific cases. This regime postpones the obligation to pay VAT until the customer pays the supplier for the supply. This cash accounting scheme can only be used by Slovak-established entities (i.e. with a seat, place of business, or fixed establishment in Slovakia) provided they meet certain conditions.

Supplies of certain types of goods and services between two Slovak VAT payers are subject to local reverse-charge. Such supplies, among others, include supplies of real estate, metal waste and scrap metal, agricultural crops, iron and steel, mobile phones and integrated circuit devices, etc. Local reverse-charge also applies to supply of construction works, supply of building or parts of buildings under construction, and some supplies of goods with assembly and installation. For such supplies, the supplier will not charge VAT on the issued invoice and the recipient must apply a reverse-charge.

Under specific conditions, VAT payers (creditors) can decrease the tax base and VAT if customers (debtors) fail to pay fully or partially for domestic supplies and the receivable becomes irrecoverable.

Slovakia implemented EU quick fix rules into the Slovak legislation and new EU rules for taxation of cross-border business-to-consumer (B2C) supplies of goods (e-commerce) and introduced One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes.

Additionally, from 1 January 2025 the definition of the supply of goods related to leasing contracts, where the terms provide for the transfer of ownership of the leased goods to the lessee at the end of the lease period, is changed. The interpretation in line with the decision of the Court of Justice of EU C-164/16 Mercedes Benz will apply on contracts concluded after 31 December 2024. Based on the introduced amendments transfer of assets under the financial lease contracts could fall under the supply of goods (rather than under the supply of services), causing the immediate VAT liabilities arise from the total value of the asset in the period of the transfer.

Customs duties

Goods imported from non-EU countries are subject to import customs clearance. Goods exported from the EU customs territory have to be declared for export customs clearance.

To communicate with the customs offices, each person must have an Economic Operator Registration and Identification Number (EORI), which is registered by the customs authorities on request. EORI registration is mandatory for customs clearance.

The European customs nomenclature and customs tariffs are set by EU legislation. Customs procedures are harmonised within the European Union.

Excise taxes

Excise tax is charged on the release to tax-free circulation or import of tobacco products, wine, spirits, beer, mineral oil, electricity, coal, and natural gas. The excise tax rate depends on the customs classification of the product.

The excise duty administrator is the Customs Authority. Communication with the Customs Authority must be in electronic form if the company is a VAT payer registered in Slovakia or if it is represented by a tax adviser or attorney.

Immovable property tax

Immovable property tax, which is divided into land tax, building tax, and tax on apartments, is governed by the Act on Local Taxes. Immovable property tax is calculated based on the area of the real estate, its location, and its type, as well as the tax rate of each self-governing region.

The immovable property tax rate may vary significantly. Please find below the spread of the tax charges per square metre.

* For each additional floor, add an additional tax of EUR 0.33.

Further, municipalities may opt to impose a local development levy that applies to real estate developments. If a municipality decides to impose the levy, its rate may be between EUR 3 and EUR 35 per square metre.

Transfer taxes

There are no transfer taxes in the Slovak Republic.

Stamp taxes

There are no stamp duties or similar taxes on share or other property transfers in the Slovak Republic, although small administrative fees are payable to register such transactions.

Turnover taxes

There are no turnover taxes in the Slovak Republic.

Payroll taxes

Taxable remuneration from employment includes all remuneration, whether monetary or non-monetary, including in-kind benefits provided to an employee. Statutory health insurance and social security contributions paid by the employee reduce taxable income. Obligatory employer’s health insurance and social security contributions paid by the employer are not part of the employee’s taxable income.

Employers must keep Slovak payroll records for employees and members of their statutory bodies.

The tax base up to EUR 48 441,43 €is taxed at 19%. The exceeding part of the tax base is taxed at 25%.

A tax rate of 7% or 35% applies to taxable dividend income (e.g. dividends from profits generated from 1 January 2017) of individuals starting from 1 January 2017. The higher tax rate applies in case of dividends received from non-treaty jurisdictions.

A tax rate of 10% applies to taxable dividend income from profits generated from 1 January 2024 – 31 December 2024. From 1 January 2025 a tax rate of 7% applies to taxable dividend income from profits generated from 1 January 2025.

Income of constitutional authorities from dependent activity is, in addition to the tax calculated as listed above, subject to a special tax rate of 5%.

Social security contributions

Employer’s health insurance and social security contributions total 36.2% of employee remuneration. From 1 January 2025, the maximum assessment base for all types of social insurance was increased to EUR 15 730 (previously EUR 9,128) monthly. Health insurance assessment base is not capped. Employers also pay injury insurance contributions of 0.8% of employees' total salary costs per month, which are not capped.

The maximum assessment base for the purposes of health insurance is cancelled for all types of income, except dividend income. Dividend income paid out from the profit generated after 1 January 2017 is no longer subject to health insurance contributions. The rate of health insurance contributions for individuals who receive dividend income paid out from the profit generated before 31 December 2016 (except for dividends from listed shares) is 14% of the assessment base. In general, the payer of the dividend needs to withhold the health insurance contribution on the payment of the dividend.

Special tax on regulated industries

There is a special tax from activities of entities in regulated industries (e.g. energy, insurance and re-insurance, public healthcare insurance, electronic communications, pharmaceuticals, postal services, railway transport, public water distribution and sewerage, air transport). In 2025 pharmacies that have received permission from the State Institute for Drug Control and companies that produce petroleum products will be added to the list of regulated persons. The tax is calculated as a multiple of the tax base, coefficient, and the tax rate. The liability to pay this special tax arises in case the accounting profit exceeds EUR 3 million.

The coefficient (maximum of 1) depends on the amount of income from the regulated activity. As of 1 January 2025, the monthly levy rate for the telecommunication services increases from  0.00363 to 0.01576. From 1 January 2040, it will again be reduced to 0.00363. For the petroleum industry the rate is established at 0.025.

Special tax on banks

The special levy payable by certain financial institutions (bank levy) has been cancelled effective as of 1 January 2021.

From 1 January 2024 the special tax on banks is recovered. It applies to the banks and other institutions having license from the National bank of Slovakia or similar EU institution. The tax applicable to the banks is 0.025. This rate will gradually decrease and from the accounting period starting from 1 January 2028 it will constitute 0.00363.

Insurance premium tax (IPT)

IPT of 8% applies to non-life insurance premiums in Slovakia and is payable by insurance companies.

Motor vehicle tax

Vehicle tax applies to vehicles that are registered in the Slovak Republic and used for business purposes. The taxpayer is the entity that uses the vehicle for business purposes. The tax rate depends on engine capacity, vehicle size, etc. The motor vehicle tax is administrated by the Tax Office.

Financial transaction tax

From 1 January 2025, a new Financial transaction tax is introduced. The first tax period will be April 2025.

Taxpayers will be individual entrepreneurs, legal entities, and branches of foreign entities that are clients of a payment service provider performing financial transactions. Exceptions include the Social Insurance Agency and budgetary organisations.

The law distinguishes between the taxable person and the person responsible for the tax collection and transfer to the budget. Payment service providers (banks and similar institutions) that have a registered office or branch in Slovakia will collect the tax from taxpayers and remit it to the tax administrator. If a Slovak entrepreneur is a client of a payment service provider seated outside Slovakia and with no branch here, the obligation to declare and pay this tax will be the responsibility of the respective entrepreneur. This obligation will still apply if the entrepreneur authorises another entity to perform the financial transaction. The law provides a rather extensive list of exceptions: e.g. payment of taxes, levies, and similar; purchase of government bonds; certain operations of a securities dealer related to the purchase of securities on behalf of a client, etc.

Subject of the tax: 1) Financial transactions resulting in debiting the entrepreneur’s bank account with a specific amount. 2) Use of a payment card issued to a business account. 3) Charged expense related to the performance of a financial transaction that applies to the entrepreneur’s activities carried out in Slovakia.

The basic tax rate is 0.4%, but a maximum of 40 euros from the tax base. The annual rate for a payment card is two euros.

The taxable period is a calendar month. The deadline for filing a tax return and paying the tax is the end of the calendar month immediately following the taxable period.

In addition to filing tax returns, detailed records for individual taxable periods should be kept to the extent necessary to determine the tax correctly.

Tax on sweetened soft drinks (Sugar Tax) in Slovakia as of 2025

As of 1 January 2025, the final version of the Sugar Tax Act introduces a tax on selected packaged sweetened soft drinks and packaged concentrates containing added sugar or a sweetener. As regards taxation, the separate category of sweetened soft drinks (packaged drinks or packaged concentrates) with a precisely determined caffein content (more than 150 mg/l (caffeine sugar-sweetened soft drinks) has been modified.

The tax rate for caffeine sugar-sweetened soft drinks will be twice as high as for sweetened soft drinks with caffeine content below the above limit, i.e. €0.30/l for packaged soft drinks for direct consumption, and €2.10/l or €8.60/kg for packaged concentrates of these soft drinks.

The act also defines exemptions from taxation for packaged sweetened soft drinks that are initial baby food, follow-on baby food, food for special medical purposes, total food replacement for weight regulation, or packaged concentrates that are a medicine or a nutritional supplement.