The Slovak Tax Administration (Finančné riaditeľstvo Slovenskej republiky) has published information on the VAT rates applicable to energy supplies after 1 January 2025. This document highlights the changes in VAT legislation resulting from Law No. 278/2024, which aims to improve public finances.
Important points:
- Energy supply as repeated supply: The supply of energy (such as electricity, water, heat and gas) is generally considered to be a repeat supply of goods. This means that the same type of goods are delivered at regular intervals. In these cases, VAT becomes chargeable no later than the last day of the payment period for the repeat supply.
- Different VAT rates for invoices: Because VAT rates will change as of January 1, 2025, invoices for energy supplies may be charged with different rates. This is particularly relevant when the billing period extends over the turn of the year.
- Correction of the VAT base: When the final bill for energy supplies is made, the VAT base must be adjusted to take account of the different rates applicable during the billing period.
- This means that the supplier must specify the difference between the original and the corrected VAT base, as well as the difference in VAT amounts.
- For the correction, the VAT rate in force at the time the VAT liability arose must be used.
- Example: If the invoicing period runs from 1 May 2024 to 30 April 2025, and the final statement is drawn up on 31 December 2024, the old VAT rate will be used for the part of the supply up to and including 31 December 2024. For the part of the supply from 1 January 2025, the new VAT rate will be used.
- Combined energy supplies: When the supply of energy is combined with its distribution, this is considered to be a single composite supply. In that case, only one rate of VAT applies, namely the rate applicable to the main component of the supply, in this case the supply of energy itself.
- Note: The specific VAT rates applicable to energy supplies in Slovakia from 1 January 2025 are not mentioned in the sources. For this information, please refer to the Slovak tax legislation.
Source financnasprava.sk
