Doing business legally in a jurisdiction always requires registering with the appropriate authorities such as registering to set up the entity or value-added tax registration for engaging in VAT-taxable activities. Value Added Tax is charged for the purchase and sale of goods, import and export of certain commodities, provision of certain services, and organization of live events. Sometimes goods stored in warehouses located in a country are charged by the resident tax authorities.
In addition, selling goods or providing services online to customers in a foreign country is subject to value-added tax obligations. Companies must ensure they register for it before starting any VAT-taxable activity. This may be done during the incorporation of the entity. Once your value-added tax registration is approved, a unique number is allocated to the business by the authority. Certain activities are VAT-exempt in the country; it is, therefore, recommended to find out the exemptions beforehand.
If you are a business owner looking to register for a value-added tax number for your business or you are simply interested in learning about it, this full guide provides information for you
VAT registration thresholds
There is no minimum revenue requirement for foreign companies operating in Slovakia if they are already registered for value-added tax, goods, and services tax in their country of permanent residence, or the nation in which their corporate headquarters are situated. However, the threshold for VAT in the European Union (distance selling) is set at €35,000 per year for enterprises that sell goods online to customers in Slovakia. If an internet business has revenues that are lower than the threshold for “distance selling,” then such a business is required to comply with VAT regulations in the nation in which its owners reside.
Format of a VAT number
A Slovakian value-added tax number is a unique combination of a prefix (SK) and ten digits usually issued to businesses carrying out taxable commercial activities in its territory. As an EU member state, the country has its specific format for it. To register, a company has to apply for VAT registration, and then after it is approved, it is allocated the number. Assigning a unique Slovakian VAT number by the tax authority to a company can take up to three or four weeks.
Registration to obtain a VAT number
For companies domiciled in the country, they can submit their application form at the tax office nearest to them. However, non-resident entities have to obtain non-resident tax ID numbers before proceeding to register for VAT. Non-resident businesses have to ensure they submit the registration form and other requested documents to the Slovakian tax authorities in Bratislava, no less than fifteen days before they start any taxable activity. All businesses carrying out taxable VAT activities have to comply with the Slovakia compliance rules, as well as file annual returns. The Slovakian tax office requires the completion and submission of the following documents:
- VAT certificate (to show proof of registration in any EU member state
- An original notarized or stamped extract from the national trade register of the company
- A copy of the passport of the company’s representative (if any)
Take note that as soon as a company is given its VAT number, it can start engaging in commercial operations that result in taxable income and may also be charged VAT. In addition, any supporting papers that are presented in a language other than Slovak, such as the VAT certificate, an extract that has been notarized or stamped, etc., are required to be translated into Slovak by an official translator.
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