- Registered social enterprises in Slovakia can apply a reduced VAT rate of 5% on goods and services if they use 100% of their post-tax profit to achieve their main goal.
- The legal basis for this reduced rate is specified in the VAT Act and references the Act on Social Economy and Social Enterprises.
- From July 1, 2024, the conditions for applying the reduced VAT rate have been simplified: the requirement to supply goods/services to an “eligible customer” and the condition of not distorting competition have been removed.
- These changes align Slovak law with relevant EU directives on VAT rates.
Source: financnasprava.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.
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