An accounting unit, whether it is a self-employed person or a company, has an obligation to follow the registration obligation for income tax.
The VAT Act regulates the registration of domestic persons in § 4, § 7 and § 7a - there are different types of registration, which it is good to know in advance and choose (if possible) the right one for your type of business
Domestic taxable persons (individuals and legal entities) are registered as VAT payers in accordance with Section 4 of the VAT Act . By registering in accordance with this provision, they acquire the status of a VAT payer, i.e. they have the obligation to pay tax on their supplies of goods and services and have the right to deduct the tax, with the exception if they supply goods and services exempt from tax according to Sections 28 to 42 of the VAT Act.
Pursuant to Section 7 of the VAT Act, purchasers who purchase goods from other member states in the country are registered. By registering according to this provision, the acquirers do not become tax payers. They are obliged to pay tax on the acquisition of goods, but are not entitled to a tax deduction.
According to § 7a of the VAT Act, taxable persons are registered who receive or supply services from/to another member state, where the place of delivery is determined according to § 15 par. 1 of the VAT Act and the person liable to pay tax is the recipient of the service. By registering according to this provision, taxable persons do not become tax payers. They are obliged to pay tax when receiving a service from a foreign taxable person, but are not entitled to a tax deduction.
The registration of a foreign person is governed by Section 5 of the VAT Act and the change in the registration of the payer is regulated by Section 6a of the VAT Act. Information on the registration of foreign persons, as well as on the change of registration, can be found in the section Rights and obligations of a foreign person.
The obligation to register as a VAT payer is for every taxable person who has a registered office, place of business or establishment in the country, and if he does not have such a place, but has a residence in the country or usually stays in the country and achieves a turnover of 49,790 euros for no more than 12 previous consecutive calendar months. This does not apply if the taxable person achieved turnover exclusively from the supply of goods and services that are exempt from tax according to Sections 37 to 39 of the VAT Act.
Attention - not every turn is a turn for the purposes of mandatory registration. Contact your accountant to find out if you qualify for a turnover.
Turnover is understood as the tax-free value of delivered goods and services in the country (Section 4, paragraph 7 of the VAT Act). The place of delivery of goods is regulated in § 13, § 14 and § 16a of the VAT Act and the place of delivery of services in § 15, § 16, § 16a of the VAT Act. Therefore, turnover includes the fair value of supplies representing the consideration at the time of their delivery. Payments received before the delivery of goods and services are not included in the turnover, and this applies in the case of a natural person as well as a legal entity.
If you supply services or goods outside of Slovakia, be sure to consult your registration obligations.
A taxable person may, in accordance with § 4 par. 2 of the VAT Act to apply for registration as a VAT payer even before reaching the statutory turnover, i.e. before reaching a turnover of EUR 49,790 for a maximum of 12 previous consecutive calendar months.
When submitting an application for voluntary registration as a VAT payer, the essential fact is whether the person submitting the application is a taxable person, i.e. whether he performs an economic activity in accordance with § 3 of the VAT Act. According to the binding interpretation of the Court of Justice of the EU, even the preparation for future taxable transactions is considered to be the performance of an economic activity (Court of Justice decision C-268/83). Therefore, a person who does not carry out any taxable transactions at the time of the application, but intends to carry out a business activity, and can demonstrate preparation for future taxable transactions with credible evidence, can also apply for voluntary registration.
Can't decide which registration is right for you? Contact our experienced team, which has extensive experience in cross-border trade and the movement of goods or services. Our accountants will be happy to advise you on which type of registration is suitable and necessary for your type of business.
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They put their trust in our hands at the start of the business and many of them are still with us.
Ubique is a branch of an English staffing agency that provides Tata Technologies (an Indian multinational company engaged in technology and IT services in the automotive and aerospace industries) with the transfer of highly qualified IT workers from India to the Jaguar Land Rover plant in Nitra. We helped the Ubique agency to secure the immigration agenda for the transfer of workers. This collaboration has been going on for years and we are happy to help Ubique.
Since 1994, Slovak company Slovakodata has been dedicated not only to SAP implementation of processes in banking, insurance, public administration and industry. Our company provides legal services in the area of the Commercial Register. We are proud to be a long-term supplier of this company.
Schneider Electric SE is a French multinational company that specializes in digital automation and energy management. It covers homes, buildings, data centers, infrastructure and industries through a combination of energy technology, real-time automation, software and services. We are glad that we can help her with the mobility of employees between companies in individual European countries.
We are very happy that we could help with the relocation of the Boroumand family to Slovakia from Iran, and thanks to us they started doing business in a new environment. We are very proud of them, son Yasha started studying in Slovakia at a prestigious American academy and later got to the technical university in Vienna.
ISPER was founded in 2005 as a local internet service provider. Since its inception, it has been actively building and improving its optical and radio network, through which it provides services to end users.
Currently, ISPER operates more than 50 km of its own optical routes, more than 100 connecting transmitters, 5 server rooms and data centers - all this for its several thousand satisfied residential, home and corporate clients.
SMARTUP helped ISPER in establishing business companies as well as in employing foreigners.
It is a leading manufacturer and provider of perimeter fencing and industrial mesh. The company has been a world leader in perimeter protection for over 135 years and their products are available in over 100 countries. Betafence also has its branch in Slovakia, and our company provided them with legal advice.