Ministry of Finance proposes 2% VAT rise
The Slovakian Ministry of Finance has proposed a 2% rise in the standard Value Added Tax rate. This would increase the rate from 20% to 22%.
In its proposals, the Ministry highlights that Slovakia’s 20% VAT rate is below the EU average of 21.5%, and lower than surrounding EU member states:
- Hungary HU- 27%,
- Poland -23%,
- Czechia – 21%
At this point, the proposals does not yet have the consent of the newly elected parliament and should be considered later this year. Talks to form a coalition government are still underway. This means, if accepted, they would not be implemented until sometime in 2024.
The measure is part of a range of many tax changes to stabilise the country’s deficit. Other VAT measures include:
- Withdrawal of reduced VAT on:
- print publications;
- entrance to sport events; (Slovakia cut VAT on many of these services to 10% earlier this year)
- Removal on VAT exemption for:
- natural gas
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