Mandatory VAT registration

What it means

VAT registration under section 4 is the registration by which a business established or trading in Slovakia becomes a VAT payer. It may be compulsory, when turnover exceeds the statutory threshold, or voluntary, when the business applies for it.

Since 2025 the law has two thresholds. If a business exceeds the annual turnover threshold for a calendar year, it becomes a VAT payer from the following year. If it exceeds the higher threshold during the year, it becomes a VAT payer from the very supply that crossed it and must charge VAT immediately. In both cases it must apply within the statutory deadline.

Turnover includes income from supplies of goods and services that would be taxable, including certain exempt supplies. Sales of fixed assets, for example, are not counted. After registration the business receives a VAT number.

How it works in practice

For clients under the small business exemption we monitor turnover monthly and prepare registration in advance as the threshold approaches. The riskiest is the higher in-year threshold, because once it is crossed VAT must be charged on the very next invoice.

The application includes details of the business, bank accounts and directors. For a new company or people with past debts, the tax office may ask for a VAT security deposit. We therefore prepare clients for the evidence of genuine business activity the office may request.

After registration we set up invoicing, records and return deadlines. If the business holds stock or assets bought before registration, we look at reclaiming the VAT on them retroactively to the extent the law allows.

What to watch out for

Late registration means the business must pay VAT for the period in which it should already have been registered, even though it did not charge it to customers. It is also fined. For small companies this can hit cash flow hard.

Exceeding the threshold is assessed for the business as a whole. Splitting a business between several people, such as spouses, just to keep each under the threshold may be treated by the tax office as abuse, with the turnover taxed jointly.