VAT, or DPH, is separate from income tax. A loss-making business can still need registration. An IČ DPH issued under §7a does not make you a full VAT payer entitled to deduct input VAT.

Two §4 registration thresholds

Domestic turnover is measured by calendar year under the VAT Act. Exceeding €50,000 requires an application within five working days; payer status normally starts on 1 January of the next year. Exceeding €62,500 in the same year triggers payer status on the supply that crosses this threshold.

Example: turnover reaches €51,000 in October, requiring an application. A November supply raises it to €64,000, so January is too late. If already registered through an application, check the further notification duty. VAT turnover and bank receipts can differ.

§7a: EU business services

Qualifying B2B services received from or supplied to another EU state require registration before the first transaction, regardless of value. Advertising, subscriptions and freelance work may qualify; establish supplier, customer status and place of supply. Not every foreign service follows the same treatment.

A §7a recipient may owe Slovak VAT without input deduction. When tax is due, the return and payment are generally required within 25 days after month-end. EU service supplies may require a recapitulative statement. Registration alone is not the full compliance process.

§7: acquiring goods

Qualifying EU goods acquisitions use a €14,000 calendar-year threshold, with registration before the acquisition reaching it. This is not full §4 payer registration. Separate goods, services, non-EU imports and consumer sales.

Rates and practical monitoring

Rates are 23%, 19% and 5%, selected according to the supply and statutory schedules. Some food moved to 23% in 2026. Maintain cumulative calendar turnover, foreign supplier records and customer VAT identifiers. Check status before a large deal and assess voluntary registration using customer and expense patterns.

Registration thresholds: calendar-turnover example

Suppose a business makes only supplies counted towards Slovak turnover under §4. It accumulates €48,000 from January to August, then makes a €4,000 supply in September. Turnover reaches €52,000, exceeding the €50,000 threshold. The application is due within five working days; without another trigger, VAT-payer status starts on 1 January of the following year. If a further October supply brings turnover to €63,000, the €62,500 threshold is also exceeded: status starts with the supply that crosses that threshold. Notify the tax authority through the required procedure.

This is a simplified domestic-business example, not a rule for every bank credit. A loan, owner contribution or transfer between your accounts does not become turnover merely because the bank credits it. For foreign services, exempt transactions, advances and asset sales, first determine what counts. Keep a separate cumulative register from January; the former rolling-12-month approach must not be mechanically applied to the current thresholds.

VAT-inclusive prices: three different calculations

At the standard 23% rate, €1,000 excluding VAT becomes €1,230 including VAT. If €1,230 is already the final price, the base is €1,230 / 1.23 = €1,000 and VAT is €230. Multiplying the final price by 23% incorrectly produces €282.90. For a €100 final price, the rounded base is €81.30 and VAT is €18.70.

If a non-payer registers and keeps a €100 retail price, revenue excluding VAT falls to €81.30. If the €100 base is preserved, the customer price becomes €123. Before registration, compare both scenarios alongside possible input-tax deductions. The 19% and 5% rates apply only to specified categories: they cannot be selected to achieve a preferred margin. These examples assume an ordinary transaction subject to 23%.

A €100 foreign service: why §7a matters

Suppose a Slovak business that is not a VAT payer buys an ordinary €100 B2B service from an EU supplier, with the place of supply in Slovakia under §15(1). Registration under §7a is required before receiving that service, even at low turnover. For an invoice without foreign VAT, the recipient accounts for Slovak tax: €100 × 23% = €23. Registration only under §7a gives no deduction entitlement: the economic cost under these assumptions is €123. A full VAT payer may also deduct the tax if the deduction conditions are met; the outcome depends on use of the service.

Before buying, identify the legal supplier, its country, whether the purchase is business-related and the place-of-supply rule. Retain the invoice and IČ DPH verification. Ordinary services, electronic consumer services and property-related services can follow different rules. When selling an ordinary B2B service to an EU customer under §15(1), separately check §7a and the súhrnný výkaz. Receiving an IČ DPH does not make every domestic sale subject to VAT.

Related guides

Official sources