On 1 January 2019 an amendment to the Slovakian VAT Act will come into force. The draft, which among other things removes the tax guarantee, is currently undergoing interdepartmental discussions in the Slovakian Parliament.
No tax guarantee any more
According to the governmental draft of the Slovakian VAT Act amendment, the provisions regarding tax guarantees will be deleted. This should also affect the tax guarantees levied in 2018.
Financial leasing is no longer a supply of services
With regard to ECJ Case 164/16, new rules regarding cross-border financial leasing will be implemented. The actual wording of the Slovakian VAT Act contains provisions regarding cross-border financial leasing, under which a delivery of goods / supply of services must be declared in accordance with VAT treatment in the country of the lessee. Nowadays, this rule is also applicable vice versa. This provision is to be deleted according to the current governmental draft.
Delivery of goods / supply of services in exchange for “vouchers”
This new provision covers the situations with both “single-purpose” and “multi- purpose” vouchers. With “single-purpose” vouchers, the taxable event arises at the time of issue, but with “multi-purpose” vouchers the taxable event arises at the time of exchange. The distinction between “single” and “multi” is whether or not we can determine the place of supply / place of delivery and the tax amount with certainty.
Simplification rule for occasional suppliers
If the amount of rendered services in the reporting year and in the previous year did not exceed EUR 10,000, the place of supply is determined as the state in which the supplier is based. This rule should help avoid the massive administration connected with the application of the MOSS scheme. Consequently, it is deemed a simplification rule for occasional suppliers of telecommunication services, radio and television broadcasting services and electronically supplied services for non-taxable persons.
If you would like to know more about the details of the amendment to the Slovakian VAT Act, please visit the homepage of Mandat Consulting, k.s., the exclusive partner of WTS Global in Slovakia!