Slovakia Proposes VAT Threshold Hike to €85,000 Effective July 2026

The Slovak Ministry of Finance has introduced a significant proposal to amend the Value Added Tax (VAT) Act, aiming to boost small businesses by raising the mandatory VAT registration threshold to €85,000. The proposed change, which is currently awaiting parliamentary approval, is scheduled to take effect on 1st July 2026.

This move is designed to reduce the administrative burden on small entrepreneurs and is part of a broader, multi-year VAT reform package for 2026–2030.

Key Details of the Proposal

– Threshold Increase: The current, complex threshold system, which involves thresholds of €50,000 based on previous turnover and €62,500 based on immediate turnover would be replaced by a single, higher threshold of €85,000.

– Effective Date: If approved by the National Council of the Slovak Republic, the new threshold is set to become active on 1st July 2026.

– Purpose: The primary goal is to alleviate administrative obligations for smaller taxpayers and align with European trends for small enterprise (SME) schemes.