In 2023, significant changes in the field of VAT occurred in Slovakia, affecting not only businesses but also consumers. The reduced VAT rate extends to services related to sports and restaurant services, with a new 5% rate being introduced. These changes are reflected in the amendment to the VAT Act, specifically in § 27 of Act No. 222/2004 Coll. on value-added tax.

In 2023, a new 5% VAT rate was introduced for services related to rental housing, which becomes mandatory for sellers of selected types of goods and services. The application of this rate is not optional but mandatory for cases falling within the definition of state-supported rental housing.

In the sports sector, there has been an expansion of the 10% reduced VAT rate to selected goods and services, including sports equipment and fitness centers. This measure aimed to promote sports activities and make them more accessible to the public.

Restaurant and catering services are subject to new rules, which since March 2023 also apply to activities related to sports with high energy demands. This measure may affect establishments providing sports activities and related services, such as catering.

The most significant change also applies to accommodation services, which are subject to a 10% reduced VAT rate. In addition to traditional hotel and tourist services, this includes campsites, recreational parks, and other forms of accommodation. Since the end of March 2023, transitional provisions apply, including the reduced VAT rate for cable car transportation, admission to sports facilities and artificial pools, as well as restaurant and catering services.

For consumers and businesses, it is important to note that the applicable tax rate on any tax liability will be the valid rate on that particular day. The current overview of VAT rates in Slovakia for 2023 provides a comprehensive view of innovations and changes that may impact various economic sectors and the daily lives of the population.

In 2024, positive changes are coming to the tax system for businesses. The non-taxable part of the tax base will increase from €4,922.82 to €5,646.48 per year, allowing businesses to reduce their taxable base. This increase will enable individuals to use non-taxable portions for the taxpayer, spouse, and supplementary pension savings, with the non-taxable portion applicable only up to the amount of the tax base without transfer to subsequent periods.

Changes in the non-taxable portion of the tax base will affect not only businesses but also employees, who will see an increase in their monthly income from January 2024. The net monthly income of an employee will increase from €410.24 in 2023 to €470.54 in 2024.

These positive tax adjustments will bring significant improvement to the financial situation of businesses and employees in the upcoming year.


Tax Carousel in Slovakia

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