Approved changes in value added tax (VAT) and income tax (CIT) from 1.1.2025
Based on the public finance consolidation approved by the National Council of the Slovak Republic on 3 October 2024, the value-added tax (VAT) will increase to 23% starting next year. A new VAT rate of 19% will be introduced for food items. Additionally, VAT on basic food products will decrease from 10% to 5%.
So, what will the VAT rates look like?
The approved law introduces a new classification of goods and services into VAT rates:
|
A good or a service |
VAT rates in 2024 |
VAT rates in 2025 |
|
Goods and services provided by social enterprises |
10 % |
5 % |
|
State-supported rental housing |
5 % |
5 % |
|
Accommodation services |
10 % |
5 % |
|
Books |
10 % |
5 % |
|
Entrance fees to sports events |
10 % |
5 % |
|
Restaurant services - eating in a restaurant |
10 % |
5 % |
|
Food - to go |
19 % |
23 % |
|
Consumption in bars – excluded alcohol |
20 % |
19 % |
|
Other sources of energy |
20 % |
23 % |
|
Electric energy |
20 % |
19 % |
|
Basic food items |
10 % |
5 % |
|
Selected food items |
20 % |
19 % |
|
Medicines and health aids |
10 % |
5 % |
|
Basic VAT rate |
20 % |
23 % |
Please note that due to the reclassification of goods and services into different tax rates, it is necessary to verify the classification of all goods sold and services provided under the new rates and adjust the settings in accounting and invoicing software accordingly.
If you need assistance with this, feel free to contact us. Our experts will be happy to help you.
Changes in the Income Tax Act
During the approval process in Parliament, minor amendments were made to the law, resulting in an increase in the income tax rate for legal entities earning taxable income (revenues) exceeding EUR 5 million in 2025. These companies will be subject to a new tax rate of 24%.
In addition to the change in the tax rate, adjustments are being made to the child tax bonus, the option to donate 2% of one's tax to parents, and other minor changes that we have discussed in a previous article.
