Parliament Considers Bills on VAT Registration Threshold Increases and Domestic Reverse Charge Extension

Summary

 

• Slovakia’s Parliament is considering draft amendments to the VAT Act that would raise the mandatory VAT registration thresholds, with the aim of reducing administrative burdens for smaller businesses; the final threshold amounts are not yet confirmed.
• The same legislative package includes a potential extension of the domestic reverse charge mechanism, but the scope (sectors, supplies, or transaction types) has not yet been specified and will depend on the final adopted text.
• The measures are indicatively expected to take effect from 1 July 2025, subject to completion of the legislative process, approval, and publication.

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Legislative status

The National Council of the Slovak Republic has been considering several draft bills amending the Slovak VAT Act (Act No. 222/2004 Coll.) as part of a broader package of indirect tax measures. These bills were discussed in January 2025 and remain subject to completion of the legislative process, including parliamentary approval, presidential signature, and publication.

1. Increase of VAT registration thresholds

The proposed amendments include higher thresholds for mandatory VAT registration, with the stated objective of reducing administrative burdens for smaller businesses.

Key elements:

• Parliament is considering raising the thresholds for mandatory VAT registration for businesses established in Slovakia.
• The measure forms part of a wider VAT reform package, alongside changes to VAT rates and reduced‑rate eligibility.

At this stage, no definitive threshold amounts are confirmed in the parliamentary materials. The final figures will only be known once the legislation is formally adopted.

2. Extension of the domestic reverse charge mechanism

In parallel, the parliamentary discussions also cover changes to VAT collection mechanisms, including a potential extension of the domestic reverse charge system.

What is clear at this stage:

• The draft amendments aim to further modernise the Slovak VAT system and include structural changes beyond rates and registration rules.
• The extension of reverse charge mechanisms is consistent with Slovakia’s broader policy objectives, including VAT fraud prevention and cash‑flow simplification.

However, the parliamentary documents do not yet specify:

• which sectors, goods, or services would fall within an extended domestic reverse charge scope, or
• whether the extension would apply broadly to domestic B2B supplies or only to targeted transactions.

These elements will depend on the final legislative text.

3. Expected timing

Based on the parliamentary discussions, the VAT amendments under consideration were expected to take effect from 1 July 2025, subject to the completion of the legislative process. This timing should be regarded as indicative rather than final.

Sources

• rnrsr.sk
• rnrsr.sk

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