Slovakia extends reverse charge to tackle VAT fraud

These rules shift VAT liability to the customer where both parties are VAT registered, removing the opportunity for missing trader fraud at supplier level.

See more in our Slovakian VAT guide. Or how VATCalc’s tax engine correctly treats VAT on domestic reverse charge.

IT, Advertising and consultancy subject to reverse charge

The proposed extension targets service sectors with growing fraud exposure:

• IT services (CPA 62, 63.11)
• Advertising and media services (CPA 73.11, 73.12, 73.20)
• Management consultancy (CPA 70.22)

This marks a clear policy shift from goods-based controls to intangible, high-volume service flows.

EU approval required

Implementation is conditional on Slovakia obtaining a derogation from Article 193 of the VAT Directive via an EU Council decision. The rules will only apply once this is granted, even if enacted domestically earlier.

Planning for shift of VAT reporting

Businesses should prepare for:

• customer-side VAT accounting on domestic B2B services
• stricter VAT ID validation and counterparty checks
• updates to ERP tax logic and invoice handling

Current Slovakian domestic reverse charge: goods-led anti-fraud controls

The existing Slovak framework already applies reverse charge to a defined list of fraud-sensitive supplies, including:

• metal waste and scrap
• greenhouse gas emission allowances
• construction works and related services
• certain immovable property transactions (e.g. insolvency or enforcement)
• goods supplied as security
• specified agricultural products and metals
• mobile phones and integrated circuits above EUR 5,000
• investment gold

It signals where EU VAT control is heading. As ViDA approaches, tax authorities are moving upstream into transaction-level controls across services, not just goods.

EU VAT General and Domestic Reverse Charge rule by country

EU VAT General and Domestic Reverse Charge rule by country