Slovakian VAT Act amendment: bank account information of taxpayers
Slovakian VAT Act amendment includes taxpayers’ obligation of notifying bank account, extended liability of the customer, split payment, and new VAT refund requirements.
17 December, 2021
Taxpayers registered for VAT in Slovakia must notify their bank account to the Slovakian tax authorities using a specific form published in the website of the tax authorities.
A list with these bank accounts per taxpayer will be published by the tax authorities by the January 2022, and it will be regularly updated.
Customers must also ensure that they pay their invoices to bank accounts included on the list of registered bank accounts, otherwise, they will be liable for the VAT paid in a different bank account.
Also, this list will have an impact on the deduction and reimbursement of VAT in Slovakia, since only VAT paid to bank accounts included on the list will be subject to reimbursement.
You will find below more information on the modification of Slovakian VAT Act.
Bank account notification to tax authorities
The VAT payer is obliged to report his own bank accounts, established in the Slovak Republic or abroad, which will be used for business carried out in the Slovak Republic (according to § 3 paragraph 2 of the VAT Act). According to the information published by the authorities, this refers to the bank accounts that will be used to receive payments for goods or services supplied in the Slovak Republic or will be used to pay for purchasing goods and services, with a place of delivery in the Slovak Republic – ie, transactions subject to tax under § 2 of the Act on VAT. Bank accounts not used for business within VAT, e.g. used only for supplies of services with a place of delivery outside the country, do not need to be notified.
Taxpayers are subject to this new requirement concerning domestic and foreign bank accounts used for businesses in Slovakia.
This requirement concerns taxpayers VAT registered in Slovakia, regarding their domestic and foreign bank accounts used for business purposes in Slovakia, ie, for transactions with place of supply Slovakia - from a VAT perspective.
In case the taxpayer only performs transactions with a place of supply different than the Republic of Slovakia, it is not necessary to report the bank account used.
This obligation had to be fulfilled by 30 November 2021 by taxpayers already VAT registered, and it is required to be submitted immediately for all new taxpayers – at the latest before starting the activities on the country. Penalties might be applied in case of non-fulfilment of this obligation.
Any changes on the bank accounts used and subject to communication to tax authorities must be notified using the same online form. Also, bank accounts no longer used, must be cancelled from this register via the same online form.
As from January 2022, tax authorities will publish the list of bank accounts to be used by each taxpayer and economic operator in Slovakia. This has special importance considering that certain liability is shifted to the customer when paying invoices with Slovakian VAT.
Tax authorities will publish the list of registered bank accounts in January 2022, and it will be updated regularly so economic operators can review it.
Joint liability of the customer on VAT for invoices received
Customers paying invoices containing Slovakian VAT must ensure that they are making the payment to a bank account included on the public list of registered bank accounts on the day the payment instruction is issued. If the bank account provided by the supplier is not included there, customer must contact the supplier and request either to receive a bank account that is registered on the tax authorities’ list, or to make use of the possibility of split payment recently introduced.
If the customer pays an invoice to a bank account not valid, he becomes jointly liable for the VAT of that invoice together with the supplier before the tax authorities.
In connexion to the previous topic, the amendment to the VAT Act introduces the possibility of split payment, with the purpose to reduce the impact of customer VAT liability on invoices received.
As from first January 2022 it will be possible for customers to use split payment in Slovakia. This method consists on splitting the payment on the invoice into two:
- The net amount paid to the Supplier
- The VAT amount paid directly to the tax authorities – in this case, to the personal bank account assigned to the Supplier as a Slovakian taxpayer.
Split payment is introduced in order to reduce the impact of customer VAT liability on invoices received. This method allows customers to make VAT payments on invoices received directly to the tax authority.
Refund of VAT credit
Following the previous measures, as from first January 2022, Slovakian tax authorities will only reimburse VAT in bank accounts registered on the public list of the authorities. In case the bank account provided was not notified to the tax authorities, the reimbursement will be postponed until this obligation is met.
VAT registration certificates
Another measure introduced by the amendment to the VAT Act implies that it will no longer be required to present the original VAT certificate before the tax authorities in case if modification or cancel of the VAT registration. This will be effective as from 1 January, and it will release taxpayers and administration from the current administrative burden.
Marosa can assist you with your VAT compliance obligations in Slovakia. Contact our team of VAT experts who will be glad to help you.