The limit turnover for compulsory registration of value-added tax payers is going to be lower as of next year. After the introduction of the single European currency in Slovakia, the limit will be reduced from the current SKK 1.5 million (EUR 49,790) to EUR 35,000 (SKK 1.054 million). Entrepreneurs will have the duty to register with the tax office for VAT payment in the event that their turnover over the last twelve months will exceed the aforementioned limit of EUR 35,000.
In introduction of the change, Slovakia has to abide by the applicable European Union directive. This is the reason why it is not possible to calculate the SKK 1.5 million turnover with use of the euro conversion rate but Slovakia is obliged in association with the euro introduction to put down in the VAT law the directive-determined turnover in euros, which equals the aforementioned EUR 35,000, said Finance Ministry's spokesman Jan Onda.
The ministry said that entrepreneurs who become VAT payers next year after the adjustment of the turnover should take into consideration the fact that after registration they have the right to deduct VAT (19 percent) from the price of the assets in the event these are used for entrepreneurial activities.