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4.3 Indirect Taxes
The indirect taxes assess the consumption of goods and services. The main classification of the indirect taxes is – universal and selective. The universal taxes touch the consumption of all consumers. The assignment of the selective taxes affects the consumption of particular goods.
4.3.1 Value Added Tax
The Value Added Tax is an economic neutral tax for business entities who are its payers. Its construction is based on a continuous taxation of added value – a continuous taxation on individual levels of realized outputs of operating and distributive chain.The object of VAT is :
The subject of VAT – the taxable party :
Since the entry of Slovakia into the European Union, the term of a taxable party is wider (compared with the previous taxable party according to the Act on VAT effective till 2004). Within this category we differentiate 4 categories of people :
A foreigner who supplies goods in the form of distance selling is obliged to file the tax registration application at the tax office prior to the supply of goods when the person reaches a turnover of SKK 1,500,000 per calendar year.
A taxable person who has the seat, place of business or fixed establishment in the country, and who achieved a turnover of SKK 1,500,000 per no more than 12 preceding consecutive calendar months, is obliged to fill in the tax registration application at the tax office. Except of this compulsory registration, the business entity may be registered as a willing payer of VAT. The tax period is one calendar month. If the taxpayer reaches a turnover of less than SKK 10,000,000 during the previous calendar year, the tax period shall be a calendar quarter.
Tax base
In respect of the supplies of goods and services, the taxable amount is everything that constitutes the consideration which has been or is to be obtained by the supplier from the recipient of the performance or another person in return for the supply of goods or service lessened by the tax. The taxable amount also includes the subsidy or contribution that is in direct connection with the price of goods or service.
Tax rate
The European Union supports a unit rate of VAT. Slovakia is on the same path. (Only two countries in the EU assert a unit rate of VAT). The tax rate is 19 % in case of the supply of goods or provision of services in the domestic country as well as in case of the acquisition of goods or services from another Member State as well as in case of the importation of goods and services.
Tax exemptions
VAT exemptions :
4.3.2 Excise taxes
Five individual laws regulate the excise taxes on selective goods in the Slovak republic.Excise tax on beer
The subject of the tax is beer produced in SR, delivered from another Member State or imported from a third country. For the purposes of this act, beer means an alcoholic beverage with alcohol contents exceeding 0.5 % of the volume which originated by the spirituous fermentation of brewing beer or which is a mixture of beer and non-alcoholic beverages. The concentration of beer is expressed in degrees Plato3*. The tax base is the amount of beer stated in hectolitres. The tax is calculated as the product of the tax base, beer concentration in degrees Plato and the appropriate tax rate.
| Tax rate in SR | |
| Basic tax rate | SKK 50/degree Plato/hl |
| Reduced tax rate | SKK 37/degree Plato/hl |
The reduced tax rate is applied to beer produced by an independent small brewery whereof the annual beer production does not exceed 200 000 hectolitres.
Excise tax on wine
For purposes of the excise tax, wine is differentiated by the producing technology. Wine means still wine, sparkling wine and intermediate product. The subjects of the tax are wines (still, sparkling, intermediate products) which were produced, delivered from another Member State or imported from a third country. The tax base is the amount of wine stated in hectolitres. The tax is calculated as the product of the tax base and the appropriate tax rate.
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| Still wine | |
| Sparkling wine | |
| Sparkling wine with alcohol contents not exceeding 8.5 % of the volume | |
| Intermediate products |
Excise tax on spirit
The subject of the tax is spirit produced in the Slovak Republic or transported from another Member State or Non-Member State of the EU. The tax base is the amount of spirit stated in hectolitres of the 100 % alcohol. The tax is calculated as the product of the tax base and the appropriate tax rate.
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*degree Plato is the content of the extract of the original brewing beer calculated according to the big Balling formula stated in the Slovak Technological Norm expressed in weight percentage
| Tax rate in SR | |
| Basic tax rate | SKK25,000/hl |
| Reduced tax rate | SKK 12,500/hl* |
The reduced tax rate is applied to spirit produced in a fruit grower’s distillery in the amount of no more than thirty litres of alcohol per grower and his household per production period.
Excise tax on mineral oil and intermediate products
The subjects of the tax are mineral oils produced in SR, delivered to SR from another Member State or imported from a third country. Mineral oil means petrol, gas oil, heating oil and liquefied petroleum gas. The tax base is the amount of mineral oil stated in litres at the temperature of 15 °C or in kilograms. The tax shall be calculated as the product of the tax base and the appropriate tax rate. The tax rates are stated in the following table. Specific types of mineral oils are exempted from the duty.
| Subject of the tax | MJ | Tax rate in SKK/MJ |
| Petrol |
1,000 l | 15,000 |
| Petrol |
1,000 l | 18,000 |
| Medium oil and gas oil | 1,000 l | 14,500 |
| Heating oil | 1,000 kg | 800 |
| Liquefied petroleum gas as fuel |
1,000 kg | 7,800 |
| Liquefied petroleum gas as gas |
1,000 kg | 0 |
| Natural gas as fuel | 1 GJ | 100 |
| Natural gas as gas | 1 GJ | 0 |
Excise tax on tobacco products
The subjects of the tax are tobacco products produced in the tax territory of SR, imported from a third country or delivered from another Member State. The tax base for tobacco products is the amount of tobacco products expressed in pieces or kilograms with the exception of cigarettes. The tax base for cigarettes is the amount of cigarette pieces in a consumer package and the cigarette price stated on the tax stamp. The tax on tobacco products with the exception of cigarettes is calculated as the product of the tax base and the tax rate. The tax on cigarettes is calculated as the sum of a specific part of the tax and of the percentage part of the combined tax rate. The specific part of the tax is calculated as the product of the number of cigarette pieces in a consumer package and of the specific part of the combined tax rate.
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*The amount of no more than thirty litres per grower and his household per production period.
| cigarettes | |||
| cigars, cigarillos | |||
| tobacco | |||
The tax period is one calendar month for all types of excise taxes and the tax administration
is performed by the customs office. The tax obligation arises on the day of releasing tobacco
products into the free circulation.
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