News in the field of taxation and accounting 11/225

Čo v článku nájdete:

• Amendment to the VAT Act and subsequent amendments
• E-invoice
• Official registration of the group
• Other selected changes in VAT Act and Income Tax Act
• Government Bill on Sales Registration
• Amendment to the Tax Code and the Law on the Limitation of Cash Payments
• Judgment of the European Court of Justice, C-726/23, Arcomet, Romania
• In conclusion

Amendment to the VAT Act and subsequent amendments

E-invoice

For the discussion of the National Council of the Slovak Republic in November was submitted for second reading amendment of the VAT Act, which is primarily introduced mandatory electronic invoicing (so-called e-invoice) and digital communication of delivery data for financial management goods and services. The amendment was approved on 9 December 2025 in its second and third readings. It is currently expected to be signed by the President of the Slovak Republic and subsequently published in the Code of Laws. The transitional provision of the VAT Act with effect From 1 January 2027 introduces an obligation for domestic payers taxes to be issued and received in invoices in a specified electronic format, as well as an obligation to communicate data electronically domestic supplies of goods and services. All domestic VAT payers who deliver goods or provide a service with a place of delivery in Slovakia (except for exempted supplies pursuant to § 28 to § 43 and § 47 of the VAT Act or the issuing of simplified invoices) will be obliged to make such e-invoices. All persons to whom VAT payers are obliged to produce e-invoices must be aware of the invoices. Then, With effect from 1 July 2030, the above obligations are extended to cross-border supplies of goods and services. Following the introduction of mandatory digital communication of data for domestic and cross-border supplies of goods or services, the obligation to submit a control statement and a summary statement shall be completely abolished with effect from 1 July 2030. E-invoices will be sent using so-called digital postmen Certified Delivery Service Providers (via Peppol). The digital mailman will ensure that the e-invoice reaches the correct recipient safely and reliably. Taxpayers will have access to this service either through an accounting programme or through a web or mobile application of a digital postman. The digital postman is chosen by the taxable person from the market offer, while the list of certified digital postmen will be published on an ongoing basis on the financial administration portal. It is currently assumed that subscription to such a simple application of the digital mailman will not cost more than the EU average of EUR 5 ♦ 12 per month. The digital notification of the delivery of goods and services to the financial administration will take place automatically by means of digital post offices at the time the invoice is issued. The obligation to notify data as a supplier is fulfilled by the supplier submitting the electronic invoice to his digital mailman. The financial report of the Slovak Republic in order to raise awareness of the forthcoming changes in e-invoices, which are relatively extensive, runs a series of webinars, which are available on the following link together with further information on e-invoices: Informative website of e-invoicing in Slovakia. We are continuously monitoring the development and up-to-date information on e-invoice and we will also be reporting on further developments in the upcoming news.

Official registration of the group

With effect from 1 January 2026 the amendment of the VAT Act also introduces changes in the area of registration of the VAT group in order to eliminate procedures leading to avoidance of registration obligations. A new institute for the registration of the group on ex officio tax is introduced, which provides for the power of the tax administration to decide on the registration of two or more formally independent taxable persons for whom there are grounds for registering the group ex officio, as a single payer for the purposes of value added tax (passing tax and maintaining the benefit of non-accounting for VAT in the course of the business carried out by those taxable persons). The competent tax administrator will be the tax office of Banská Bystrica, which will have a burden of proof in the proceedings – i.e. it will be obliged to prove, on the basis of data from control and operational activities, that the taxable persons concerned have organised their economic activity in such a way as to deliberately avoid registration for taxable persons, thus not subject to exit tax, thereby giving them an unjustified competitive advantage on the market.

Other selected changes in VAT Act and Income Tax Act

Increased application Special payment method VAT in such a way that, for certain transactions of selected taxpayers, where it is reasonable to suspect that the tax will not be paid by the supplier, the tax office will be able to impose on the supplier an obligation on the customer to pay the invoice tax directly on the account of the tax administrator. This extension of the institute’s special way of paying the tax has considerable potential from the point of view of the financial administration to address a large group of fraud with a missing trader. On the basis of the proposals of the committees of the National Council of the Slovak Republic, the following amendments to the VAT Act have emerged from the approved text of the amendment and additions to the provisions of the VAT and Income Tax Act:

• the extension of the flat-rate deduction of value added tax of 50%, approved by the amendment to the VAT Act in September this year, to passenger cars with a purchase price without tax of less than EUR 1 700. In particular, the new arrangements will affect L1e cars (i.e. small motorcycles) used by the VAT payer for a purpose other than business. On the other hand, it is clarified that the adjustment of the deductible tax and the exemption from the application of the adjustment of the deductible tax (Art. 54d) concern only passenger cars which are capital goods pursuant to Paragraph 54 (2) (a). (a) ♦ i.e. with a purchase price of more than EUR 1 700;
• clarification that the obligation to notify the tax administration in the case of the use of passenger cars exclusively for business purposes or for the purposes of the exemptions provided for by the VAT Act shall be specified; no cover passenger cars acquired by the payer by 31 December 2025;
• a modification of the wording of the Income Tax Act in the sense that value added tax on passenger cars of 50%, where the VAT payer is not entitled to deduct, is not treated as a tax expense. It is added that the non-deductible tax recorded as part of the acquisition price of the property, not for tax purposes the entry price of the property, i.e. not to be taken into account in the calculation of tax depreciation. This will mean a difference in the accounting and tax entry price. Consequently, where the scope of use of a passenger car for business purposes as well as for purposes other than business purposes changes, an additional change in the deduction of value added tax shall not be included in the tax base, since the value added tax initially withheld is not a form of its exclusion from the entry price of the property by tax expense;
• In accordance with Article 2 (2) of Regulation (EC) No 659/1999, the Commission is empowered to adopt delegated acts in accordance with Article 108 (3) of the Treaty on the Functioning of the European Union laying down detailed rules for the application of Article 108 of the Treaty on the Functioning of the European Union. The introduction of this adjustment will allow the non-VAT payer to apply tax depreciation from the full purchase price of the assets, including value added tax. The proposal covers lease contracts concluded at the earliest on 1 2025, first used when filing a tax return after 31.12. 2025;
• modification of the contents of the form with data on withholding tax deducted and deducted under the Income Tax Act.

Government Bill on Sales Registration

The government draft law on the registration of sales in cash, which we informed about in previous news, was discussed in November by committees of the National Council of the Slovak Republic and 3 December 2025 has been approved in Parliament.

In particular, the following amendments were made to the original proposal:

• The original design of the software treasury was extended to include the possibility to place a set of treasury programme and a protected data storage in a remote environment under the management of a certified manufacturer, importer or distributor of the cash programme and a protected data storage (cloud services). This modification foresees fewer service interventions and lower risk of tax evasion;
• the exemption from the use of eKasy has been extended to include the sale of the motorway sign for use of defined sections of motorways, toll collection for use of defined sections of roads, provision of financial services to financial market operators and services provided in the framework of electricity, gas, steam, air conditioning, collection, treatment, water supply, purification and waste water treatment;
• the seller is obliged to place at each point of sale a notice of the obligations laid down by this law in such a way that it is easily accessible and legible for the purchaser. The template for the notification and the details of the location of the notice at the point of sale shall be determined by the Financial Directorate and published on its website. The seller is obliged to publish this notice from 1. 2026 and keep it at each point of sale until 31.12. 2026;
• the deadline for the notification of an eKasa treasury malfunction was extended to 96 hours from the end of the day on which the malfunction occurred.

Amendment to the Tax Code and the Law on the Limitation of Cash Payments

On 3 December 2025, amendments to Act No. 563/2009 Coll. on Tax Administration ( Tax Code) and Act No. 394/2012 Coll. on the Limitation of Cash Payments were approved together with the Government’s Bill on Sales Registration.

From 1.1.2026, the tax rules increase the lower and upper limit of fines for non-compliance with basic tax obligations. In order to encourage the payment of the tax bill or the refund of the excess deduction, a reduction of the fine to 2/3 of the amount provided for shall also be introduced if the tax entity pays the consideration imposed by a decision issued in the clearance procedure within 15 days of receipt of the decision. The new amounts of fines for administrative offences under § 155 of the Tax Code are shown in the following table:

  The amendment to the Law on the limitation of cash payments re-introduces the original limits for cash payments from 1.1.2026 onwards. There shall be a prohibition on cash payment of more than EUR 15 000 among natural persons, and in other cases cash payment of more than EUR 5 000 shall be prohibited. Furthermore, the amendment to the law excludes an emergency situation from the exceptions to which the restriction does not apply. The aim of the submitter is to prevent the announcement of an emergency situation in the country from making it impossible to apply the law and thus the blanket ban on cash payments (an extraordinary situation affecting the limit on cash payments was announced in Slovakia first in connection with the pandemic coronavirus and subsequently with the war in Ukraine).

Judgment of the European Court of Justice, C-726/23, Arcomet, Romania

In the present case, Arcomet Romania, which is part of an independent global group dealing with crane leasing, buys or rents cranes to sell or rent them to its customers in Romania. The parent company Arcomet Service NV Belgium (hereinafter referred to as “the parent company’) is looking for suppliers for all its subsidiaries, including Arcomet Romania, and is negotiating contractual terms with those suppliers for its subsidiaries. The purchase and rental contracts relating to the activity carried out in Romania are already concluded by Arcomet Romania.

The remuneration for the activities carried out by the parent company and Acromet Romania was quantified according to the method of the net operating margin recommended in the OED Transfer Pricing Directive for multinationals and tax management, with a profit (loss) margin of between 0,71% and 2,74%. The parent company was obliged to issue an annual corrected invoice if the operating margin of Arcomet Romania exceeded 2,74% and Arcomet Romania, if such a margin was lower than 0,71%, in order to cover any excess loss. In 2011, 2012 and 2013 Arcomet Romania recorded a higher operating margin than 2,74%. For each of these years, the parent company issued an invoice for its services above the established profit threshold. Arcomet Romania reported the first two invoices as intra-EU purchases of services for which it applied the reverse charge mechanism for VAT purposes, but considered the third invoice as not subject to VAT. The Romanian tax administrator refused to deduct the tax on invoices received from the parent company on the ground that Arcomet Romania had not demonstrated the existence of invoiced services and their necessity for the purposes of its taxable transactions. In the questions referred for a preliminary ruling, the ECJ decided that Article 2 (1) (a) (ii) of the EC Treaty should apply. (c) the VAT Directive must be interpreted as meaning that remuneration for intra-group services provided by the parent of its subsidiary which is contractually specified and calculated according to the method recommended by the transfer pricing directive adopted by the OECD, corresponding to a part of the operating margin of more than 2,74% achieved by that subsidiary, is the consideration for the provision of services subject to VAT. At the same time, Articles 168 and 178 of the VAT Directive are to be interpreted as meaning that they do not prevent the tax administration from requiring the taxable person applying for the deduction of input VAT to produce documents other than that invoice to prove the existence of the services on the invoice and their use for the purposes of taxable transactions of that taxable person, in so far as the production of such evidence is necessary and proportionate for those purposes.

In conclusion

• The Ministry of Labour, Social Affairs and Family of the Slovak Republic by Communication No 340/2025 Coll. on 28.11. 2025 increased the amount of basic compensation for the use of road motor vehicles on roads (for every 1 km of driving) as follows:

1. EUR 0,090 for two-wheelers, three-wheelers and quadricycles (originally EUR 0,085);
2. EUR 0.313 for passenger cars (originally EUR 0.296).

Those basic refund amounts will apply with effect from 1 January 2026.

• On 10 November 2025 an amendment to Act No 71/1992 was published in the Code of Laws. Coll. on court fees and fees for the extract from the criminal record together with the amendment of Act No 145/1995 Coll. on Administrative Fees. With effect from 1 December 2025, both amendments introduce the possibility of payment of court fees and administrative fees through the technical equipment of the State Treasury. Until now, these fees could only be paid through the Slovak Post.
• The Ministry of Finance of the Slovak Republic published 11.11. 2025 a proposal to amend the measure laying down details of accounting procedures and the framework accounting chart for entrepreneurs accounting in the double accounting system. The proposal responds to the changes adopted by the amendments to the Value Added Tax Act, namely the re-classification of leases from the re-delivery of the supply service from 1.1. 2025 and the introduction of a flat-rate deduction of value added tax of 50% for passenger cars from 1.1.2026.
• The Ministry of Finance of the Slovak Republic issued a model form of the tax return as well as a guide to its completion. About the obligation to submit a return to the callable tax in 2026 we informed you in previous news. For a specimen of the form and the lesson, see this Line under contributions No 28 and No 29.
• In September news we informed you about the adoption of the amendment to Act No. 461/2003 Coll. on Social Insurance (hereinafter referred to as “the Social Insurance Act’) which brought about a fundamental change in the way compulsory sickness insurance and compulsory pension insurance (hereinafter referred to as “social insurance’) arose and ended. From 1.7.2026, social insurance contributions will also be paid by SZČO, which has not yet been covered by this obligation due to lower income (the minimum social security contribution will be EUR 131,34 in 2026 for these SZČO). The Ministry of Labour, Social Affairs and Family of the Slovak Republic published 20.11. 2025 the intention to amend the Act on Social Insurance. The aim of the forthcoming legislation is to review the adequacy of the levy burden for specific SZČO groups, in particular the liberal professions. The expected date for initiating the comments procedure is January 2026. We will monitor and keep you informed of legislative developments.
• The financial directorate of the Slovak Republic published on 27.11. 2025, in connection with the change in the amount of the food we have informed about in previous news, the update of the methodical instruction on the rateability of the employee’s food allowance, the inclusion of the employee’s meal allowance in the employer’s tax expenditure and the inclusion of the dietary taxpayer with income pursuant to Article 6 (1) and (2) of the Income Tax Act in the tax expenditure of this taxpayer. The methodological instruction can be found on this Line.
• The financial directorate of the Slovak Republic published information to complete the tax return on motor vehicle tax for hybrid vehicles. You can find information on this Line.