- New VAT Payer Definition: As of January 1, 2025, Slovakia’s VAT law introduces a new term for VAT payers with an assigned tax identification number under specific sections (§ 4, § 4b, § 5). This definition impacts how tax obligations are handled, particularly in construction services.
- Automatic Tax Obligation Transfer: The law specifies that tax obligations for construction services are transferred only if both parties involved have the new VAT payer status. This change requires careful attention to the registration status of both suppliers and recipients to ensure compliance.
- Practical Examples and Compliance: The document provides practical examples illustrating the application of these definitions in real-world scenarios, emphasizing the importance of understanding the differences between general VAT payers and those with assigned identification numbers for accurate tax reporting and compliance.
Source Financnasprava.sk
Unofficial translation
Financial Directorate of the Slovak Republic 4/DPH/2025/IM
Information on the Term “Taxpayer with Assigned Tax Identification Number under § 4, § 4b, or § 5”
This information is specifically intended for all VAT payers (hereinafter referred to as “taxpayer”) established domestically, who registered as taxpayers after December 31, 2024, as well as for other taxpayers who supply goods or services to such taxpayers domestically.
As of January 1, 2025, the law No. 222/2004 Coll. on Value Added Tax, as amended (hereinafter referred to as “VAT Act”), will use, in addition to the term “taxpayer,” a new term defined in § 5a: “taxpayer with an assigned tax identification number under § 4, § 4b, or § 5.” This new term is only used in the provisions of § 6, § 69 paragraphs 9, 10, 11, 12, 15, 16, § 77 paragraph 2, and § 79 paragraph 2 of the VAT Act (in other provisions, only the term “taxpayer” is used).
For example, as of January 1, 2025, the provision § 69 paragraph 12 letter j of the VAT Act regulating the transfer of tax liability for construction works states: “A taxpayer with an assigned tax identification number under § 4, § 4b, or § 5 who is the recipient of the performance from another taxpayer with an assigned tax identification number under § 4, § 4b, or § 5 is required to pay the tax related to the supply of construction works, including the delivery of a building or part thereof according to § 8 paragraph 1 letter b, which falls under section F of the special regulation, and the delivery of goods with installation or assembly if the installation or assembly falls under section F of the special regulation.”
From the cited provision, it follows that in the case of the delivery of construction works domestically after December 31, 2024, the transfer of tax liability will apply only if both contractual parties—both the supplier and the recipient of the construction works—meet the definition of the term “taxpayer with an assigned tax identification number under § 4, § 4b, or § 5,” as stated in § 5a of the VAT Act.
According to § 5a of the VAT Act for the purposes of this act, a taxpayer with an assigned tax identification number under § 4, § 4b, or § 5 is considered a taxpayer who: a) became a taxpayer upon the delivery of the decision on registration for tax under § 4, starting from the day they became a taxpayer; if the taxpayer did not fulfill the notification obligation under § 4 paragraph 5, then starting from January 1 of the calendar year following the calendar year in which they exceeded the turnover according to § 4 paragraph 1 letter a, b) became a taxpayer before the delivery of the decision on registration for tax under § 4 or § 5, starting from the day the decision was delivered, or c) is a group, starting from the day the tax office registers the group.
In provisions § 4 paragraphs 1 a) to i) and paragraphs 7 and 8 of the VAT Act, it is defined when a taxable person established domestically becomes a taxpayer.
Differences Between the Two Terms and Their Practical Application: The differences between these two terms and their application in practice will be explained through several practical examples that frequently occur in the delivery of construction works:
Example 1
A sole trader (painter) delivered painting work on November 28, 2025, amounting to €1,000, achieving a turnover of €50,500. By the end of 2025, he achieved a total turnover of €52,500. On December 1, 2025, he submitted an application for registration as a taxpayer due to exceeding the turnover of €50,000. On December 9, 2025, he received a decision from the tax office on registration for tax, effective from January 1, 2026. On January 5, 2026, he delivered painting work worth €400 to a customer, a taxpayer with an assigned tax identification number under § 4.
Solution: The sole trader became a taxpayer on January 1, 2026 (according to § 4 paragraph 1 letter a of the VAT Act). He became a taxpayer with an assigned tax identification number under § 4 on January 1, 2026 (after receiving the decision on registration for tax) according to § 5a letter a of the VAT Act. The painting work delivered on January 5, 2026, priced at €400, will be invoiced to the customer with the transfer of tax liability according to § 69 paragraph 12 letter j of the VAT Act, because at the time of delivery, both parties are in the position of a taxpayer with an assigned tax identification number under § 4.
Example 2
The construction company on May 13, 2025, delivered construction works (insulating a store building in Slovakia) worth €25,000, achieving a turnover of €65,000 (i.e., by delivering these construction works, it also exceeded the turnover of €50,000 and the turnover of €62,500). The construction works were delivered to a customer who is a taxpayer with an assigned tax identification number under § 4. On May 16, 2025, the construction company submitted an application for registration as a taxpayer due to exceeding the turnover of €62,500. On May 22, 2025, it received a decision from the tax office on registration for tax effective from May 13, 2025.
Solution: The construction company, by delivering construction works through which it exceeded the turnover of €62,500, became a taxpayer on May 13, 2025 (according to § 4 paragraph 1 letter b of the VAT Act). The construction company became a taxpayer with an assigned tax identification number under § 4 on May 22, 2025 (the day the decision on registration for tax was delivered) according to § 5a letter b of the VAT Act. The construction works delivered on May 13, 2025, will be taxed in the usual manner according to § 69 paragraph 1 of the VAT Act, because at the time of delivery on May 13, 2025, it did not yet have the status of a taxpayer with an assigned tax identification number under § 4.
Example 3
On April 8, 2025, the construction company delivered concrete works in Slovakia worth €10,000, achieving a turnover of €51,000. On April 11, 2025, the construction company submitted an application for registration as a taxpayer due to exceeding the turnover of €50,000. On April 17, 2025, it received a decision from the tax office on registration for tax effective from January 1, 2026. On May 15, 2025, by delivering construction works worth €6,000, it achieved a turnover of €63,000. The construction works were delivered to a customer who is a taxpayer with an assigned tax identification number under § 4. On May 16, 2025, the construction company notified the tax office (according to § 4 paragraph 5 of the VAT Act) that it became a taxpayer on May 15, 2025, due to exceeding the turnover of €62,500.
Solution: The construction company, by delivering construction works on May 15, 2025, through which it exceeded the turnover of €62,500, became a taxpayer (according to § 4 paragraph 1 letter b of the VAT Act). The construction company also became a taxpayer with an assigned tax identification number under § 4 on May 15, 2025, because it had previously received the decision on registration for tax on April 17, 2025, which included the assigned tax identification number (according to § 5a letter a of the VAT Act). The construction works delivered on May 15, 2025, priced at €6,000, will be invoiced according to § 69 paragraph 12 letter j, with the transfer of tax liability because at the time of delivery both contractual parties are in the position of a taxpayer with an assigned tax identification number under § 4.
Example 4
On June 10, 2025, the construction company submitted an application for voluntary registration as a VAT taxpayer before exceeding the turnover of €50,000. On June 18, 2025, it received a decision from the tax office on registration for tax effective from June 25, 2025 (at that time, it had achieved a turnover of €30,000). On June 30, 2025, it delivered construction works worth €5,000 to a customer who is a taxpayer with an assigned tax identification number under § 4.
Solution: The construction company became a taxpayer on June 25, 2025 (the day stated in the decision from the tax office) according to § 4 paragraph 7 of the VAT Act. The construction company became a taxpayer with an assigned tax identification number under § 4 on June 25, 2025 (the day it received the decision on registration for tax) according to § 5a letter a of the VAT Act. The construction works delivered on June 30, 2025, priced at €5,000, will be invoiced to the customer with the transfer of tax liability according to § 69 paragraph 12 letter j of the VAT Act, because at the time of delivery both contractual parties are in the position of a taxpayer with an assigned tax identification number under § 4.
Example 5
The construction company realized that due to a mistaken assessment of the place of delivery of construction works for a foreign company, it had already reached a turnover of €49,790 by June 30, 2024. It submitted an application for registration as a taxpayer late on February 21, 2025. On February 26, 2025, it received a decision from the tax office on registration for tax effective from March 3, 2025. The construction company delivered construction works worth €12,000 to a customer (a taxpayer) on October 10, 2024. It also delivered construction works worth €2,000 to a customer who is a taxpayer with an assigned tax identification number under § 4 on March 12, 2025.
Solution: The construction company became a taxpayer on March 3, 2025 (the day stated in the decision on registration for tax issued by the tax office) according to § 85kn paragraph 1 of the VAT Act and § 4 paragraph 3 of the VAT Act valid until December 31, 2024. The construction company became a taxpayer with an assigned tax identification number under § 4 on March 3, 2025 (according to § 5a letter a of the VAT Act). For the construction works worth €12,000 delivered on October 10, 2024, i.e., during the period when the construction company should have been a taxpayer, the VAT at a rate of 20% of €2,000 will be declared in the tax return submitted for October 2024; the tax base = €10,000. The construction works delivered on March 12, 2025, worth €2,000, will be invoiced to the customer with the transfer of tax liability according to § 69 paragraph 12 letter j of the VAT Act, because at the time of delivery both contractual parties are in the position of a taxpayer with an assigned tax identification number under § 4.
Example 6
A newly established construction company entered into a contract for work with a customer (a taxpayer with an assigned tax identification number under § 4) for the construction of a garage at a total price of €80,000. On April 4, 2025, according to the terms of the contract, it received an advance payment for the purchase of part of the materials amounting to €10,000. Following the receipt of the advance payment, the company submitted an application for registration as a taxpayer on April 7, 2025. On April 14, 2025, it received a decision from the tax office on registration for tax effective from April 4, 2025. The garage was delivered based on the acceptance protocol on June 23, 2025.
Solution: Upon receiving the advance payment for the construction, (through which it will exceed the turnover of €62,500), the construction company became a taxpayer on April 4, 2025 (according to § 4 paragraph 1 letter g of the VAT Act). The construction company became a taxpayer with an assigned tax identification number under § 4 on April 14, 2025, when it received the decision on registration for tax (according to § 5a letter b of the VAT Act). For the advance payment of €10,000 received on April 4, 2025, it will issue an invoice to the customer, calculating the tax base from the received advance payment at €8,130.08 and the VAT at 23% amounting to €1,869.92. (The advance cannot be invoiced to the customer with the transfer of tax liability according to § 69 paragraph 12 letter j of the VAT Act, because at the time of receiving it, the company did not have the status of a taxpayer with an assigned tax identification number under § 4). For the delivered garage, the construction company will issue an invoice for the amount of €80,000, deducting the paid advance of €10,000, and only the remaining amount of €70,000 will be invoiced with the transfer of tax liability according to § 69 paragraph 12 letter j of the VAT Act, because at the time of delivery both contractual parties are in the position of a taxpayer with an assigned tax identification number under § 4.
In Relation to the Difference Between the Terms “Taxpayer” and “Taxpayer with Assigned Tax Identification Number under § 4, § 4b, or § 5”: The Financial Directorate of the Slovak Republic will publish on its website (www.financnasprava.sk) an updated list of tax subjects registered for value-added tax, which includes a column “Date of Registration,” indicating the date when the taxable person became a taxpayer (§ 4 paragraph 1 letters a) to i) and paragraphs 7 and 8 of the VAT Act) and also indicates in the column titled “VAT Taxpayer Since,” the date when the taxable person became a taxpayer with an assigned tax identification number under § 4, § 4b, or § 5.
Note: Every taxpayer who has the status of a taxpayer with an assigned tax identification number under § 4, § 4b, or § 5, and who, in the position of supplier, delivers goods or services to another taxpayer with a delivery location in the domestic territory, where the transfer of tax liability is applied according to § 69 paragraphs 11, 12, 15, 16 of the VAT Act, must pay great attention to this list. If, according to this list, at the time of the delivery of goods or services, the recipient has the status of “only” a taxpayer, the supplier will tax the respective goods or services in the usual manner. However, if at the time of delivery the recipient also has the status of a taxpayer with an assigned tax identification number under § 4, § 4b, or § 5 of the VAT Act, then the supplier will apply the transfer of tax liability for those goods and services.
Prepared by: Financial Directorate of the Slovak Republic
Tax Support Center
May 2025
