VAT changes you need to know about

Value added tax is one of the most closely watched areas of tax law, because it affects almost every entrepreneur. VAT changes can affect your pricing, your cash flow and your administration. As both the rules and the rates are adjusted on an ongoing basis, in this article we focus on what you should keep track of and what amendments usually concern.

Why VAT is so sensitive

VAT is a major source of revenue for the state budget and is also harmonised at the level of the European Union. This means that changes come both from domestic legislation and from EU directives. Rates, registration thresholds and the rules for e-invoicing therefore change relatively often – always check the current figures in the version of the VAT Act in force.

The areas that changes most often concern

When VAT changes come, they usually affect one of the following topics.

• The standard and reduced tax rates on selected goods and services
• The turnover threshold for mandatory VAT registration
• The rules for acquiring goods and services from other EU countries
• The VAT control statement and its required particulars
• E-invoicing and reporting

Registration and its consequences

One of the most important topics is the turnover threshold for mandatory registration. If you are approaching it, monitor your turnover continuously, because exceeding the threshold triggers the registration obligation within precisely set deadlines. After registration, the way you invoice and your administration change, and you take on the obligation to file tax returns and VAT control statements. And do not forget that registration will affect your prices for end customers, who cannot deduct the tax. Also consider voluntary registration if most of your customers are VAT payers, as it allows you to deduct input VAT on the supplies you receive and to be an equal partner for corporate clients.

Cross-border transactions

If you trade with other countries, VAT becomes more complex. The rules for supplies of goods and services to other EU countries, for the reverse charge and for electronic services are adjusted regularly. Supplies to end consumers in other member states and the related simplified schemes are a chapter of their own. A mistake in determining the place of supply can lead to additional tax and penalties, so pay particular attention to this assessment in cross-border transactions and, if in doubt, ask for an expert opinion.

Administration and digitalisation

The trend in recent years has been towards digitalisation and more detailed reporting. So keep track of the obligations connected with e-invoicing and with submitting data to the Financial Administration (Finančná správa). Good accounting software, ongoing matching of documents and well-kept records are the foundation for handling even stricter requirements without unnecessary stress.

How not to get it wrong

The most common mistake is applying the wrong rate or registering late. That is why, with every major amendment, you should check whether the rates on the goods and services you sell have changed and whether your invoicing tools are working with the current figures. If you are not sure how VAT changes will affect your business, turn to an expert. At Bilvao we will help you with registration, with assessing both domestic and cross-border transactions and with setting up correct, error-free invoicing.

Current figures (2026)

VAT rates (from 1 January 2025)

Turnover for VAT registration (from 2025)

Figures valid for 2026; check the current wording.

Related articles: Transaction tax: who it applies to and how to optimise it, Labour Code amendment: key changes, New rules for cash payments.

Frequently asked questions

When do I have to register as a VAT payer?

The registration obligation arises when you exceed the turnover threshold set by law for a specified period. As the amount of the threshold may change, check the current wording of the VAT Act. You can also register voluntarily, which pays off especially when you trade with other VAT payers.

How do I find out which VAT rate to use?

The rate depends on the type of goods or service, and the list of items that qualify for a reduced rate is subject to change. So check the current wording whenever there is a change and, if in doubt, discuss the classification with an accountant so that you avoid having to pay additional tax.