Michaela Merz

Slovak Republic – New e-commerce tax representative rules effective 1 January 2018

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Under new rules that should be effective from 1 January 2018, a non-established supplier who acquires intra-community goods from another Member State with the intention of making a subsequent intra-community supply or export, or a distance sale with a place of delivery in another Member State, may avoid the need to become VAT registered in Slovakia by appointing a tax representative.

Tax representative of a foreign person

The Government of the Slovak Republic approved an amendment to Act no. 222/2004 Coll. on Value Added Tax, as amended, which should implement a new institution with effect from 1 January 2018 in Slovak legislation introducing the institute of the tax representative, which can be applied when acquiring goods from another Member State or a third country. The amendment still needs to be approved by the Slovak parliament and President in order to be effective.

A foreign person who acquires intra-community goods from another Member State pursuant to paragraph 11 with the intention of subsequent intra-community supply or export who applies an exemption under Paragraph 43 or 47 or a distance sale with a place of delivery in another Member State may be represented by a tax representative.

The institute of the tax representative can only be used by a foreign person who is not registered for VAT in the Slovak Republic and does not supply goods or services giving rise to a VAT liability in Slovakia. Simplification can only be applied to goods supplied by the use of an electronic communication interface, such as an electronic marketplace, electronic platform, electronic portal or similar electronic means.

What are the implications?

This change will have a beneficial effect on many foreign entities that can make use of a tax representative and will not need to register for VAT in Slovakia, provided they meet the stated conditions.

If you have any question, please do not hesitate to contact Valéria Kadášová, Senior Manager, Tel: +421 2 59350 626, valeria.kadasova@pwc.com

 

Bildquelle: M. Hermsdorf  / pixelio.de

 

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