The Slovak Ministry of Finance has announced the introduction of planned changes to the application of VAT deductions and the adoption of statutory restrictions for private motor vehicles and motorcycles that are also used for private purposes. At the same time, a change in the VAT return form has been adopted due to a legislative change in the importation of goods into the country.
A brief summary of the planned changes and modifications to the VAT return form from summer 2025 is presented in the following overview.
◻ Restriction of VAT deduction for motor vehicles
The planned changes in VAT relate primarily to the percentage application of VAT deduction for passenger motor vehicles used for private purposes in addition to business purposes. Compared to the original deduction rule, a flat-rate deduction of 50% will be applied regardless of the actual ratio of private and business use of the vehicle.
The above applies to passenger cars in the categories:
| Category | Type of motor vehicle |
| M1 | passenger vehicles, up to 8 seats (+ driver), typically cars, SUVs, passenger vans |
| L1e | light two-wheel vehicles (mopeds), engine up to 50 cm³ (if internal combustion) or power up to 4 kW (if electric), maximum speed 45 km/h |
| L3e | motorcycles, two-wheel vehicle with a power of more than 4 kW, no maximum speed limit |
However, the restriction on the deduction will now apply to:
- Purchase and import of vehicles
- Leasing of vehicles
- Costs associated with the operation of vehicles (repairs, fuel, and accessories)
- Exceptions to the new VAT deduction limitation
The change in the deduction will not apply to vehicles which are demonstrably and exclusively used by entrepreneurs for business or special purposes and the private consumption of the vehicles is of a negligible nature.
The exemption applies to passenger motor vehicles and motorcycles procured for the purpose of:
- resale, rental or leasing
- the carriage of passengers for consideration (including taxi services)
- driving lessons in driving schools
- driver training
- replacement of vehicles undergoing repairs or other work
The VAT deduction limitation will apply from 1 July 2025 to 30 June 2028, with the assumption that this period may be extended if necessary.
◻ New VAT return structure
The new VAT return form applicable from 1 July 2027 takes into account changes relating to the introduction of an obligation for a taxable person who submits a customs declaration for goods on which a tax liability has arisen by self-assessment for the importation of the goods and:
a) the release of goods for free circulation, including end use
b) the placing of goods under a temporary admission procedure with partial relief from import duties
The original VAT return form shall be used at the latest for the tax period ending 30 June 2025 or, for returns where the tax liability arose at the latest on the same date, by 30 June 2025.
At the same time, the new form is divided into separate pages for:
- tax liability
- tax deduction
The new VAT return form will also be published on the website of the Financial Administration at the end of June 2025 at the latest, so that entrepreneurs can set up their information systems in advance before reporting according to the new VAT division.
Compulsory VAT computerisation
The Government of the Slovak Republic issues preliminary information on the introduction of compulsory electronic invoicing and online data reporting in order to make the fight against tax evasion more effective. The reporting of invoice data to the tax administration is to take place in real time.
This change follows an EU action that obliges Member States to introduce mandatory VAT computerisation of cross-border transactions by 2030.
As a result, the timetable for the changes to be taken into account in regular VAT communications with suppliers/customers is as follows
| January 2027 | |
| Introduction of mandatory e-invoicing | |
| Obligation for VAT payers to prepare invoices in structured electronic format | Will apply to invoices: – issued – received – send within Slovakia (inside) |
| Slovakia to adopt EU model structured format for invoices | From now on, only a standardised invoice containing the statutory elements will be accepted, allowing automatic electronic processing |
| Introduction of mandatory reporting of domestic invoice data | |
| Obligation of VAT payers to report data from domestic invoices | It covers the entire invoicing process from issue to processing by the customer and the subsequent process of sending the data to the financial administration. It avoids interference with computerisation and the process of transmitting invoice data to the financial administration. |
The amendment to the VAT Act should enter into force on 1 January 2027
| July 2030 | |
| Introduction of mandatory reporting of cross-border invoice data | |
| Obligation to transpose EU rules on mandatory electronic cross-border invoicing | Obligation to transpose the EU Digital Age Directive by 2023 |
| Obligation for VAT payers to produce cross-border invoices in a structured format | Will apply to invoices – issued – received – sent domestically and by EU Member States |
| Obligation for payers to report cross-border invoice data electronically | Paper-based invoice processing associated with transcribing data into systems is eliminated. |
| Slovakia accepts EU structured format for invoices | From now on, only a standardised invoice containing the statutory elements will be accepted, allowing automatic electronic processing The template follows the Directive 204/55/EU of the European Parliament and of the Council for electronic invoicing in public procurement |
Consequences of the changes
The amendment to the law in the area of electronic invoicing will have an impact on:
- supplier and customer invoicing processes
- electronic linking of VAT payers with the financial administration
- the control mechanisms of the financial administration for the intervention, completeness and correctness of invoices
We will continue to follow and monitor legislative developments in this area intensively. All important and significant changes will be published in our Moore BDR newsletter.
