Changes to VAT Rates for Accommodation Services in Slovakia

New VAT Rates for Accommodation Services: From January 1, 2025, accommodation services in Slovakia, classified under code 55 of the Statistical Classification of Products by Activity (CPA), will be subject to a reduced VAT rate of 5%.
Application of VAT Rates: The VAT rate applicable to accommodation services is determined by the date the service is provided. For example, if a stay spans the end of 2024 and the beginning of 2025, the entire stay will be taxed at the new 5% rate if the service concludes in 2025.
Advance Payments and VAT: If an advance payment for accommodation is made in 2024, it will be taxed at the 2024 rate (10%). The remaining balance paid in 2025 will be taxed at the new rate (5%).
Combined Services: When accommodation includes additional services like breakfast, parking, or pool access, these are considered composite supplies and are taxed at the same rate as the accommodation (5%). However, separately charged services like wellness treatments will be taxed at their respective rates (23% for wellness).
Special Cases: Specific scenarios such as late check-out fees are treated as part of the accommodation service and thus taxed at the reduced rate of 5%. Similarly, food and beverage services provided during a stay are taxed based on the date of consumption, with different rates for alcoholic and non-alcoholic beverages.