Slovak reverse charge VAT changes
At the end of last year, the Slovak VAT authorities issued new guidance on the application of the reverse charge.
Companies which are VAT registered as non-residents and who are selling goods domestically under the reverse charge, will no longer be able to recover any input VAT suffered through their VAT return. This measure has been introduced to help prevent VAT frauds. Instead, companies may apply to recover the VAT through an 8th Directive VAT reclaim. If they are non-EU, then they should use a 13th VAT Directive claim instead.
This means that any foreign companies not providing any other type of supply would have to deregister for VAT.
The Slovak Financial Directorate has indicated that these changes are back dated to 1 October 2012.
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