The Slovak Republic has introduced VAT relief for sales invoices which have gone bad from 1 January 2021. Previously, this was unavailable to resident or non-residents with a VAT registration.
The recoverability for VAT paid to the tax authorities only applies on debts no more than three years old. A correction should be made via a credit note which should be sent to the customer to adjust their VAT deductible.
To qualify for recoverable sales VAT, any of the following conditions should apply:
- Any debts not exceeding €300 including VAT which are over twelve months old
- Customer is ceased trading (or passed away in the case of individuals)
- Customer is in debt relief proceedings
- No repayment following enforcement proceedings issued at least twelve months ago
The supplier and customer must have not material connection (ownership or control) for the above conditions to apply.