Changes in applying VAT

Changes in applying VAT valid from 1.7.2021

The new changes in applying VAT has effected operators of e-shops, subjects, whoever doesn’t have branches abroad or doesn’t pay VAT.

Because of the current situation it was necessary to put new measures in place, which will not only effect the way tax is paid at the final destination, but also the fair split of VAT between countries. Some of the complex changes are explained below.

Based on the tax law effective from 1.7.2021, the person or firm which are currently not paying VAT will be charged the difference based on the country of delivery. Slovakia has 20% rate for VAT, which is applicable to consumption goods. The difference in cost will either be refunded or we will ask for bank transfer if higher amount required. Because of the above we recommend that customers to pay via bank transfer after price is corrected rather than use card payment. Without following the correct steps the goods will not be despatched.

VAT, application and rates.

VAT, which is value added tax, which is tax applied to all consumers goods and services which are used within EU. It is applied differently in every country, which mean each country has different VAT rates. Most countries however have the VAT split into basic and lower rate, therefore there is some sort of unity in the system. The lower rate applies to food, pharmaceutical products, medicine, people transport and other aspects. Currently the country with highest VAT rate is Hungry with 27% and the lowest rate with 17% is Luxembourg. Along with Slovakian rate of 20% is also Austria, Bulgaria, Estonia and France.

The list of rates for all EU countries is valid from 1.7.2021:


Country


Code of country


VAT

Lower
VAT

Super
lower VAT

Austria

AT

20

10/13

-

Belgium

BE

21

6/12 -

Bulgaria

BG

20

9

-

Cyprus

CY

19

5/9

-

Czech Republic

CZ

21

10/15

-

Germany

DE

19

7

-

Denmark

DK

25

-

-

Estonia

EE

20

9

-

Greece

EL

24

6/13

-

Spain

ES

21

10

4

Finland

FI

24

10/14

-

France

FR

20

5,5/10

2,1

Croatia

HR

25

5/13

-

Hungary

HU

27

5/18

-

Ireland

IE

23

9/13,5

4,8

Italy

IT

22

5/10

4

Lithuana

LT

21

5/9

-

Luxemburg

LU

17

8

3

Latvia

LV

21

12/5

-

Malta

MT

18

5/7

-

Netherlands

NL

21

9

-

Poland

PL

23

5/8

-

Portugal

PT

23

6/13

-

Romania

RO

19

5/9

-

Sweden

SE

25

6/12

-

Slovenia

SI

22

9,5

-

Slovakia

SK

20

10

-