Changes to VAT legislation in Slovakia effective from 1 July 2023

A second reduced VAT rate of 5% of the tax base was newly introduced in the VAT Act. It will therefore have to be reported in the VAT control statement via the new form KVDPHv23. The new form will be available as standard via the tax administration portal or the eDane application from 1 July 2023 for the tax period 07/2023 or Q3 2023. 

In this context, for the tax periods June 2023 and Q2 2023 in Slovakia, the control report will still be submitted on the form KVDPHv21, including any additional VAT returns submitted for the tax period ending on 30 June 2023 at the latest. For the submission of the control report for July 2023, it will be necessary to submit the control report in the structure of the new form KVDPHv23. 

The reduced VAT rate of 5% of the tax base applies to: 

• the supply of a building or part of a building - including the building land on which the building or part of the building stands - which meets the conditions of a building of state-assisted rental housing under the state's social policy. The recipient of the supply must be the landlord of the State-assisted rental housing who has concluded a contract for the operation of the State-assisted rental housing building in which the building is listed - except for the supply of non-residential premises.
• reconstruction and alteration of a building or part of a building, including construction and assembly work on a building that meets the conditions of a state-supported rental housing building. The recipient of the benefit must be the landlord of a flat in state-assisted rental housing who has concluded a contract for the operation of a flat in state-assisted rental housing in which the building is specified - except for the reconstruction and alteration of the building, including construction and installation work relating to non-residential premises.

We at Algotech are already prepared for the changes in VAT legislation in Slovakia

Following these changes, Algotech has prepared the necessary modifications to the Slovak localizations of Oracle JD Edwards EnterpriseOne and Oracle EBS and a new XML structure of the VAT control statement generated directly from the system, in the new structure of the KVDPHv23 form.

Do you need help with modifying Slovak localizations of Oracle JD Edwards ERP or Oracle EBS? Do not hesitate to contact us.