Slovak legal act on VAT specifies the registration of domestic persons (natural persons and legal entities).
Domestic taxable persons (physical persons and legal entities) are registered as VAT payers according to §4 of the legal act on VAT. By registration according to this provision they shall get into a position of VAT payer that means to pay tax from their goods supply and services provisions and they have the right to deduct the tax unless they supply goods and services exempt from tax.
According to §7 of the VAT legal act, the buyers are getting registered that buy goods from other member states in the country. By registration according to §7 they do not become VAT payers. They are obliged to pay tax from purchase of goods but they are not entitled to deduct the tax.
According to §7a of the VAT legal act, taxable entities are being registered that receive or supply services from/ into another member state where the place of supply is given by § 15 point 1 of the VAT legal act and the person obliged to pay tax is the service recipient. By registration according to this provision, the taxable entities do not become tax payers. They are obliged to pay the tax at receipt of the services from the foreign taxable person but they are not authorized to deduct the tax.
Obligatory registration of the domestic taxable person is specified in §4 point 1 of the VAT legal act conditioned with the turnover requested by law.
The obligation to register for VAT payer is up to each taxable person that has a registered office, place of business or operation unit in this country and if it does not have such place but has a residence in this country and it has a turnover of 49.790 euro in a period of 12 following calendar months.
This means that at obligatory registration 2 conditions must be fulfilled:
- Applicant for registration- natural person or legal entity in SR, is a taxable person, provides economic activity according to VAT legal act.
- The amount of turnover for the following 12 months is 49790 euro and more.
The taxable person is entitled according to §4 point 2 apply for voluntary registration even before the given turnover before the turnover of 49.790 euro for the period of 12 consecutive months.
When filing a request for voluntary registration as a VAT payer, it is essential that the person filing the application is a taxable person that mean whether he provides his economic activity within the meaning of provision of the VAT Law.
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