Source: https://www.financnasprava.sk/en/businesses/taxes-businesses/value-added-tax/rights-and-obligations-of-fore
Timestamp: 2019-04-19 00:40:10+00:00

Document:
If any legal entity or an individual starts to perform within the Slovak republic(in the Slovak Republic) any activity that is subject to the value added tax and if that person has no registered seat, place of business or establishment within the Slovak republicand performs business activities in a foreign country, i.e. on the territory of another member state or on the territory of a third country (hereinafter referred to as the “foreign person”), such foreign person is obligated to file an application for registration of tax with the Bratislava Tax Office prior to the start of the given activity that is subject to the tax, other than the import of goods. The foreign person has no determined amount of turnover or any other limit for registration within the Slovak republic. The Bratislava Tax Office is obligated to register the foreign person as a taxpayer, to issue a certificate on tax registration to that person, and to allocate the tax identification number immediately, no later than within seven days of the date of delivery of the application for tax registration. The foreign person shall be a payer from the date shown in the certificate on tax registration; that date may not be later than the 31st day following delivery of the application for tax registration.
Participation in an exhibition where the foreign person sells some of its products: An entrepreneur with registered seat in Germany has no registered seat, place of business or establishment within the Slovak republic. During the period between 9 October2013 and 12 Octobec2013, he participated within the Slovak republic in an exhibition where he sold his products. Is the foreign person obligated to register within the Slovak republic? Up until what date the person must be registered?
Solution: In view of the fact that the foreign person performs within the Slovak republic an activity, which is subject to tax, he is obligated to file an application for registration with the Bratislava Tax Office prior to sale of the goods at the exhibition. The Bratislava Tax Office shall issue a certificate to the German entrepreneur and shall allocate the tax identification number. On the date shown in the certificate, the foreign person shall be considered a payer.
if the person has appointed a representative, a Power-of-Attorney does not need to be notarized if executed in Slovak language, but if executed in any other language (except for the Czech language), it must be accompanied by official translation thereof.
The documents may be delivered by the applicant for registration in the form of attachments to the application for registration or they may be submitted for review directly at the Tax Office.
At VAT registration, the foreign person may be represented by a representative that will be appointed according to § 9 of the Act on Administration of Taxes No. 563/2009 Coll. The Power-of-Attorney does not need to be notarized. If the scope of the Power-of-Attorney is not limited, the Power-of-Attorney will be considered general.
The Power-of-Attorney will be effective for the tax administrator from the date of delivery thereof or from the date of granting thereof in a protocol at the tax administrator.
In respect of any tax subject which has the registration obligation and which has residence or registered seat outside the territory of a member state, he is obligated to appoint a representative for service of documents who has residence or registered seat on the territory of the SR; otherwise the paper documents will be kept by the tax administrator and will be effective on the date of delivery thereof.
Caution: A foreign person who establishes on the territory of this country a registered seat, permanent establishment or a place of business shall be registered for tax according to provisions of § 4(1) of the VAT Act and a different form is used for registration – the application for VAT registration applicable for a national The form may be delivered in person or by mail.
e) any goods within trilateral trade according to § 45, where the person participates as the first customer.
Example No. 1 ad item a): An entrepreneur from the CR provided to a Slovak taxpayer transportation services for the goods that are determined for export from this country to Ukraine. Is the Czech carrier obligated to register for VAT within the Slovak republic?
Solution: The place of delivery of the transportation services according to § 15(1) of the VAT Act is in Slovakia, but the Czech carrier that will perform the transport of goods from the SR to Ukraine, is not obligated to be registered within the Slovak republic, because the transportation services are relieved from tax according to § 47(6) of the VAT Act.
Example No. 2 ad item b): An entrepreneur from the CR delivered transportation services for the goods that were transported from the CR to the SR for a Slovak tax payer. Is the Czech carrier obligated to register for VAT within the Slovak republic?
Solution: The place of delivery of the transportation services according to § 15(1) of the VAT Act is in Slovakia, but the Czech carrier that will transport the goods from the CR to the SR, is not obligated to be registered within the Slovak republic, because the tax from the given services must be paid, according to § 69(3) of the VAT Act, by the recipient of the services - the Slovak payer.
Example No. 3 ad item b): An entrepreneur from Poland delivered to a Slovak taxpayer a manufacturing line including installation thereof. Is the Polish foreign person obligated to register for VAT within the Slovak republic?
Solution: The place of delivery of the goods, including installation thereof, according to § 13(1)(b) of the VAT Act, is within the Slovak republic, but the Polish entrepreneur is not obligated to register within the Slovak republic, because the tax from the given delivery must be paid, according to § 69(2) of the VAT Act, by the recipient of the service - the Slovak payer.
Example No. 4 ad item b): A German entrepreneur delivered to the Slovak taxpayer certain building works for immovable property that is situated within the Slovak republic. Is the German foreign person obligated to register for VAT within the Slovak republic?
Solution: The place of delivery of the building works, according to § 16(1), is in Slovakia, but the German entrepreneur is not obligated to register within the Slovak republic, because the tax from the given works must be paid, according to § 69(2) of the VAT Act, by the recipient of the service - the Slovak payer.
Example No. 5 ad item c): A Hungarian entrepreneur delivered gas to a Slovak vendor trading with gas – a payer, via the natural gas system to the territory of the SR. Is the Hungarian foreign person obligated to register for VAT within the Slovak republic?
Solution: The place of delivery of the gas, according to § 13(1)(e) of the VAT Act, is in Slovakia, but the Hungarian entrepreneur is not obligated to register this country, because the tax from the given delivery must be paid, according to § 69(9) of the VAT Act, by the recipient of the gas – the Slovak payer.
Example No. 6 ad item d): An Austrian entrepreneur has imported goods from Ukraine to Čierna n/Tisou, that is determined for delivery to the CR to a person identified for tax in the CR. In releasing the goods to the free-circulation regime relieved from VAT, the Austrian company was represented within the Slovak republic by a tax representative according to § 69a of the VAT Act – a Slovak taxpayer. Is the Austrian company obligated to register for VAT within the Slovak republic?
Solution: The Austrian foreign person is not obligated to register for VAT within the Slovak republic, even if the place of import of the goods and the place of delivery at re-sale thereof is within the Slovak republic, because the person was represented at import and later delivery of the goods to another member state by a tax representative according to § 69a of the VAT Act.
Example No. 7 ad item e): A Hungarian entrepreneur registered for VAT in Hungary purchased goods in the CR from a Czech entrepreneur registered for VAT in the CR and the goods were transported at its own costs from the CR to the SR, where the goods were sold to a Slovak taxpayer. Is the Hungarian entrepreneur obligated to register for VAT within the Slovak republic due to the given sale of goods within the Slovak republic?
Solution: The Hungarian entrepreneur is not obligated to register within the Slovak republic in spite of the fact that the place of delivery of the goods is within the Slovak republic, because it represents sale of goods within trilateral trade according to § 45 of the VAT Act, where the Hungarian foreign person participated as the first customer.
If a foreign person from another member state supplies any goods to this country in the form of mail-order sale and the aggregate value excluding tax of the given supplied goods reaches EUR 35,000 in a calendar year, the foreign person is obligated to file an application for registration of tax with the Bratislava Tax Office, prior to supply of the goods, the value of which will reach EUR 35,000. Mail-order trade means any sale of goods transported by a foreign person from another member state or transport of which is arranged at that person´s account to this country to the purchaser who has no VAT number.
A foreign person from another member state, who would supply any goods subject to excise duty and the goods would be determined for private person´s personal consumption, is obligated to apply for registration regardless the limit which would be reached by sale within the Slovak republic, prior to supply thereof. In respect of delivery of any goods which is subject to excise duty, delivery of the goods represents mail-order sale solely under the condition that the goods are delivered to individuals for their personal consumption.
A foreign person may apply for registration also in the event the value of the goods shipped to this country has not reached the limit of EUR 35,000 in a calendar year.
The Bratislava Tax Office is obligated to register the foreign person for tax, to issue a certificate on tax registration, and to allocate a tax identification number immediately, no later than within seven days of the date of delivery of the application for tax registration. On the date shown in the certificate on tax registration, the foreign person shall be a payer; that day may not be later than the 31st day following delivery of the application for tax registration.
Mail-order sale: A French business company delivers to Slovak customers – individuals who are not tax identified, certain goods upon orders e.g. from catalogues or internet. Delivery of the goods is arranged by a French supplier from France to the SR by its own transport means. The goods are invoiced including the VAT applicable in France. The French supplier found out from its records that in September 2013, the value of the given goods supplied to customers within the Slovak republic reached 33,000 excluding the tax, and in addition, the supplier recorded also other orders from the SR. Is the French supplier obligated to file an application with the Bratislava Tax Office for registration of VAT within the Slovak republic?
Solution: As the French supplier has records of additional orders from the SR, from which it is evident that in 2013, the supplier will reach the limit excluding tax in the amount of EUR 35,000, the supplier shall file an application with the Bratislava Tax Office for registration as VAT payer before reaching the given limit.
On the date shown in the certificate, the foreign person shall be a payer. Any supplies to be delivered from France will be taxed, upon issuance of the certificate, by the VAT applicable within the Slovak republic, because upon exceeding the limit in the calendar year, the place of delivery will be considered within the Slovak republic according to § 14(1) of the VAT Act.
Example No. 1 in respect of sale of goods, if the goods are transported by the purchaser: A Czech business company registered for tax in the CR supplies to its customers who are not tax identified, certain goods upon orders.
That company never ships or transports the goods to the customers by itself. The customers transport the goods by their own transport means directly from the CR. Is the Czech supplier obligated to register within the Slovak republicwithin the Slovak republic upon reaching the limit of EUR 35,000 excluding tax in a calendar year for sale of goods to Slovak customers?
Solution: The above case does not represent the mail-order trade, because the goods are transported by the purchaser. The Czech business company is not obligated to register within the Slovak republic, not even if the supplies of goods to the customers within the Slovak republic would reach the 1imit excluding tax of EUR 35,000. The supply of goods is taxed by the VAT applicable in the CR.
Example No. 2 in respect of sale of a new transport means: A Czech supplier sold in the CR a new transport means that was transported to a Slovak customer at the customer´s own costs to the SR. The value of the supplied new transport means represented the amount of EUR 38,000 excluding tax. Is the Czech supplier obligated to register within the Slovak republicwithin the Slovak republic?
Solution: The new transport means is taxed within the Slovak republicwithin the Slovak republic, i.e. in the country of acquisition according to § 11(3) of the VAT Act, and the person obligated to pay tax is the customer within the Slovak republic according to § 69(6).
As the person obligated to pay tax is the Slovak customer, the Czech supplier is not obligated to register within the Slovak republic in spite of the fact that the goods were transported to the customer that is not tax identified within the Slovak republic at his own costs, and the value thereof excluding tax reached EUR 35,000.
A taxable person who is registered according to § 5 or § 6 and who no more meets the status of a foreign person is considered a payer registered according to § 4 from the date when that person no more met the status of a foreign person and still performs the activity that is taxed within the Slovak republic. The taxable person is obligated to report to the tax office the fact that it no more meets the status of a foreign person, within ten days of the date when the person lost the status of a foreign person. The notice shall contain the date when the person lost the status of a foreign person, and the address of the registered seat, place of business, establishment, residence or habitual abode within the Slovak republic.
From the above it follows that if a foreign person no more meets the status of a foreign person (e.g. due to the reason that an establishment was founded within the Slovak republic according to § 4(7) of the Act or the registered seat has been relocated to the SR, any change of residence), that person will be regarded as person who is registered according to § 4 of the Act (registration according to § 4 applies to any persons based within the Slovak republic). The change in registration according to § 5 and § 6 of the Act for registration according to § 4 is not subject to reaching any turnover.
If a taxable person satisfies the conditions for registration according to § 5 or § 6 and is registered according to § 4, such person is considered a registered payer according to § 5 or § 6 from the date of closing the registered seat, place of business, establishment, residence or habitual abode within the Slovak republic; such information must be reported to the tax office within ten days of the date of closing the registered seat, place of business, establishment, residence or habitual abode within the Slovak republic.
From the above it follows that change in registration from § 4 to registration according to § 5 or § 6 of the Act is resolved in similar way (e.g. a foreign legal entity´s establishment according to § 4(7) of the Act no more satisfies the criteria of an establishment). The change in registration from § 4 to § 5 or § 6 of the Act may be made in the event there exists a reason for registration according to § 5 or § 6, i.e. if the person, having acquired the status of a foreign person, will perform any activity within the Slovak republic, that is subject to VAT to be paid within the Slovak republic.
The Tax Office shall make a change in the certificate on tax registration as of the date of occurrence of the circumstance that has resulted in change of registration.
A foreign person registered according to § 5 shall have no tax obligation in the event the person obligated to pay tax is that foreign person´s customer – the taxable person within the Slovak republic.
The person obligated to pay tax is the local taxable person also in the event of receiving any services supplied by a foreign person registered for tax within the Slovak republic according to § 5, in respect of which the place of delivery is determined according to § 15(1) of the VAT Act.
A Czech entrepreneur – registered for VAT within the Slovak republic according to § 5 of the VAT Act, who has no establishment within the Slovak republic, has provided consulting services to the customer, being an entrepreneur within the Slovak republic, who is a tax payer. May the relevant services be invoiced with the Slovak VAT?
Solution: The person obligated to pay tax is the customer – the local payer according to § 69(3) of the VAT Act, which means that the foreign person who is registered within the Slovak republic according to § 5 of the VAT Act is not obligated to charge the consulting services with the Slovak VAT.
For the purposes of determining the person obligated to pay tax according to § 69 of the VAT Act, a foreign person means also any person who has an establishment within the Slovak republic, but that establishment is not engaged in delivery of goods or services within the Slovak republic by that person.
A Czech entrepreneur – registered for VAT within the Slovak republic according to § 4 of the VAT Act, who has an establishment within the Slovak republicfor sale of building materials – has provided consulting services in cosmetics to the customer – an entrepreneur within the Slovak republic, who is a tax payer. May the relevant services be invoiced with the Slovak VAT?
Solution: The person obligated to pay tax is the customer – the local payer according to § 69(3) of the VAT Act, which means that the foreign person who is registered within the Slovak republic according to § 4 of the VAT Act, but that person´s establishment is not engaged in delivery of the given services, is not obligated to charge the consulting services for cosmetics with the Slovak VAT.
The tax may be deducted within the Slovak republic by a foreign person in compliance with the statutory conditions.
The payer shall have the right to deduct tax from goods or services on the date of occurrence of the tax obligation in respect of those goods or services.
A Czech entrepreneur – registered for VAT within the Slovak republic according to § 5 of the VAT Act, who has no establishment within the Slovak republic – has supplied certain painting works in an immovable property which is situated within the Slovak republic to the customer – a private person. The person obligated to pay tax is the Czech entrepreneur – registered for VAT according to § 5. The entrepreneur purchased paints within the Slovak republic from a tax payer. Has the entrepreneur the right to deduct tax from the paints via the tax return filed within the Slovak republic?
Solution: The Czech entrepreneur registered for VAT according to § 5 of the VAT Act, has the right to deduct tax from purchase of paints, because he fulfills the conditions according to § 49(2) of the VAT Act.
at deduction of tax at import from a third country, the payer has an import document confirmed by the customs authority, where the payer is shown as the recipient or importer.
A foreign person – tax payer who satisfies the conditions for tax refund according to § 55a of the VAT Act (tax refund) cannot apply tax deduction from any goods and services in the tax return, which means that if the person buys any supplied goods and services within the Slovak republic and such goods and services are related to the supplies of goods and services where the tax is paid by the customer, that person shall have no right to deduct the tax according to § 49(9), but may apply for tax refund.
More information on tax refund is available in a separate part dealing with tax refunds, under the name VAT refund to a foreign person from another member state.
Example No. 1: A Czech entrepreneur – registered for VAT within the Slovak republic according to § 5 of the VAT Act, who has no establishment within the Slovak republic– delivered certain painting works in an immovable property that is situated within the Slovak republic to a customer – a taxpayer based within the Slovak republic. The person obligated to pay tax is the customer - the local payer according to § 69(2) of the VAT Act.
A Czech entrepreneur purchased within the Slovak republicsome paints from a tax payer. Has the entrepreneur the right for tax deduction through a tax return filed within the Slovak republic?
Solution: A Czech entrepreneur registered for VAT within the Slovak republic according to § 5 of the VAT Act has no right for tax deduction from purchase of paints, because he satisfies the conditions for tax refund according to § 55a/ of the VAT Act.
Example No. 2: A Czech entrepreneur – registered for VAT within the Slovak republic according to § 5 of the VAT Act, who has no establishment within the Slovak republic– provided certain consulting services to a customer – an entrepreneur from the SR, who is a tax payer. May the given services be invoiced with the Slovak VAT? If yes, has the entrepreneur the right to deduct tax?
Solution: The person obligated to pay tax is the customer – the local payer according to § 69(3) of the VAT Act, which means that the foreign person who is registered within the Slovak republic according to § 5 of the VAT Act shall not charge the consulting services with the Slovak VAT. As the person obligated to pay tax is the local taxable person according to § 49(9) of the VAT Act, the foreign person has no right for tax deduction, because that person may apply the tax refund according to § 55a/ of the VAT Act.
The payer is obligated to keep detail records in individual a tax period on the supplied goods and services and on received goods and services; separate records should be kept on delivery of goods and services to another member state, on acquisition of goods from another member state, and on import of goods. The records shall contain the information essential for correct computation of the tax. For the purpose of tax deduction, the payer shall keep the records separately for the goods and services with the option of tax deduction and for the goods and services with no option of tax deduction. The payer shall keep records also on any payments received prior to delivery of goods and services and any payments provided prior to delivery of goods and services.
A tax period applicable to a taxpayer is a calendar month, but a foreign person registered according to § 5 or § 6 of the VAT Act shall file a tax return for a tax period only in the event that person is obligated to pay tax for the tax period according to § 69; if, during the tax period, the person delivered any goods that were relieved from tax according to § 43 or § 47; if the person delivered goods according to § 45 or if tax deduction is applied.
The tax return will be filed by a foreign person registered according to § 5 and § 6 of the VAT Act within 25 days following the end of the tax period, if that person is obligated to pay tax according to § 69, or if, in the tax period, that person delivered any goods relieved from tax according to § 43, imported any goods to a third country, delivered any goods within trilateral trade or if tax deduction is applied. The foreign person is obligated to pay the person´s own tax within 25 days following the end of the tax period. If the result of the tax return is any excess refund, the process of refund is regulated in § 79(4) of the VAT Act.
Person´s own tax means the positive balance between the deducted tax and the total due and payable tax.
Excess refund means the excess of the total amount of deductible tax over the total amount of tax for the relevant the tax period, other than the import tax.
the payer participated in any trilateral trade as the first customer according to § 45.
The payer may file the summary statement for a calendar quarter, if the value of the goods delivered to another member state has not exceeded the value of EUR 50,000 in the relevant calendar quarter and at the same time in the preceding four calendar quarters. The option to file the summary statement for a calendar quarter shall no more apply from the end of the calendar month when the value of goods exceeded EUR 50,000 in the relevant calendar quarter, and the payer is obligated to file the summary statement separately for each calendar month of the relevant calendar quarter.
The summary statement is filed solely in electronic form within 25 days following the end of the period for which the payer is obligated to file the summary statement.
if he delivered within the Slovak republicany goods or services including repair, that are not registered through the cash registers and which are not included in table D1 (table D2 should be completed).
A foreign person registered according to § 5 is obligated to apply for cancellation of the tax registration upon termination within the Slovak republicof the activity that is subject to tax, regardless the duration of the period when that person was a tax payer and the amount of the reached turnover.
A foreign person is not obligated to apply to cancellation of registration in the event that person performs any temporary works on this territory, and plans to perform them in the future.
in the preceding calendar year, the value of the delivered goods, excluding tax, did not reach EUR 35,000.
A foreign person registered for tax according to § 6 of the VAT Act must charge with the Slovak tax any goods delivered from another member state to this country at mail-order trade of goods minimum for the period of two calendar years, and therefore, that person must be registered for tax according to § 6 of the VAT Act minimum for the period of two calendar years. However, the tax registration need not last for the whole two years in all cases. It means e.g. the situation when the person terminates within the Slovak republicthe activity that is the subject to taxation.
A foreign person registered for tax according to § 6 of the VAT Act may not apply for cancellation of tax registration in the event that person stops to deliver goods in the form of mail-order sale from another member state to this country, but performs within the Slovak republicany activities that are subject to taxation according to § 2 of the VAT Act, and is obligated to pay tax according to § 69 (1) of the VAT Act.
the tax registration certificate will be null and void.
The person who was the tax payer is obligated to deliver the tax registration certificate to the tax office within ten days of the date when that person was no more the tax payer.
The person whose tax registration is cancelled is obligated to file a tax return within 25 days of the end of the last the tax period, and the person is obligated to pay the person´s own tax within the same period (§ 78(2) of the VAT Act).
A foreign person who failed to fulfill the registration obligation within the Slovak republic or has registered for VAT on a late date, has the rights and obligations arising from the VAT Act.
A foreign person who failed to fulfill the obligation to file the application for tax registration or who filed the application for tax registration on a late date is obligated to pay tax for the period in which that person should have been in the position of a payer, from delivery of goods and services within the Slovak republic, other than the tax on delivery of goods and services in respect of which the tax should be paid by the recipient of delivery. The tax obligation is shown in the so-called additional tax return which is identical to the VAT return form. The tax base is the counter-value received or to be received by the foreign person from the recipient of delivery, less the tax.
A foreign person who failed to fulfill the obligation to file the application for tax registration or who filed the application for tax registration on a late date, has the right, for the period in which that person should have been in the position of a payer, for tax deduction relating to the goods and services that were used for delivery of goods and services, in the extent and under the terms and conditions according to § 49 and § 51 of the VAT Act. The tax deduction shall be applied in the same tax return which shows the tax according to § 78(9). The period during which the foreign person should have been a payer, shall start on the date of performance of the first taxable trade within the Slovak republic that would be subject to the obligation to pay tax, should the person be in the position of a payer.
A person who failed to fulfill the obligation to file the application for tax registration or who filed the application for tax registration on a late date is obligated to file one so-called additional tax return for the period when it should have been a payer, within 60 days of the date of discovery by the tax office that the person failed to fulfill the obligation to file the application for tax registration or within 60 days of the date of filing the late application for tax registration.
On page one of the tax return, the foreign person shall state only the year when the additional tax return is filed. For example, if the foreign person should have been registered for VAT already on 22.8.2012, and the foreign person was registered later on 1.10.2013, page one will show the year 2013. No tax period will be stated.

References: § 9
 § 4
 § 45
 § 15
 § 47
 § 15
 § 69
 § 13
 § 69
 § 16
 § 69
 § 13
 § 69
 § 69
 § 69
 § 45
 § 14
 § 11
 § 69
 § 5
 § 6
 § 4
 § 4
 § 4
 § 4
 § 5
 § 6
 § 4
 § 5
 § 6
 § 4
 § 5
 § 6
 § 4
 § 5
 § 6
 § 4
 § 4
 § 5
 § 6
 § 5
 § 6
 § 5
 § 5
 § 15
 § 5
 § 69
 § 5
 § 69
 § 4
 § 69
 § 4
 § 5
 § 5
 § 5
 § 49
 § 55
 § 49
 § 5
 § 69
 § 5
 § 55
 § 5
 § 69
 § 5
 § 49
 § 55
 § 5
 § 6
 § 69
 § 43
 § 47
 § 45
 § 5
 § 6
 § 69
 § 43
 § 79
 § 45
 § 5
 § 6
 § 6
 § 6
 § 2
 § 69
 § 49
 § 51
 § 78