- Enhanced Powers for Tax Authority: Effective from 1 April 2026, the Slovak Ministry of Finance will grant the tax authority increased powers to manage high-risk taxpayers, including extending voluntary VAT registration deadlines up to 60 days, imposing specific record-keeping obligations, and expanding grounds for VAT registration cancellation.
- VAT Guarantee Mechanism: Starting 1 January 2027, a VAT guarantee mechanism will be reintroduced, allowing the tax authority to require customers to pay VAT directly into a special tax account for suppliers deemed at risk of non-payment, with guarantees ranging from €5,000 to €500,000 based on specific risk criteria.
- Criteria for High-Risk Designation: Entities may be classified as high-risk based on “red flag” criteria such as non-cooperation with tax inquiries, involvement in fictitious transactions, chronic non-compliance with tax obligations, and suspicious business structures aimed at avoiding registration thresholds. These measures are part of broader VAT reforms set to take effect from January 2026, which will also include changes to VAT rates and deduction rules.
Source Meridian
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