- Important changes in VAT rules for long-term assets start from January 1, 2025
- Affects VAT deducted on purchase or creation of long-term assets like buildings, machines, furniture, or cars
- Requires monitoring and adjusting VAT if asset usage changes, such as from business to private use
- Previous rules until end of 2024 defined investment assets as movable items over 3,319.39 EUR and real estate regardless of price
- Monitoring period was 5 years for movable items and 20 years for real estate, starting from purchase date
- VAT adjustment was based on prediction, affecting cash flow significantly
- Adjustments were made in the last tax return of the year when the change occurred
- New terms introduced from 2025 include long-term assets and initial use
- Investment assets now include movable items over 1,700 EUR, real estate, and intangible assets over 2,400 EUR
- Monitoring period remains 5 or 20 years but starts from initial use, not purchase
- VAT adjustment now only for the specific year of change, not the entire remaining period
- Adjustments still made in the last tax return of the year when the change occurred
- Transitional rule applies old calculation rules to assets purchased or used before December 31, 2024
- New rules apply to assets purchased or first used from 2025 onward
Source: emineopartners.sk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
