Entrepreneurs’ Telegram February 2025

Newsletter – 13.02.2026

Dear clients and partners,

The year 2026 will bring several changes that will significantly tighten tax rules – from VAT registration, through sanctions and tax enforcement, to new obligations in the area of eKasa. In a separate edition, mailingLeitner Slovakia highlights the introduction of mandatory e-invoicing as of 1 January 2027, which requires companies to start preparing and adjusting their processes already in 2026.

We focus primarily on the following topics:

Changes in the VAT area
- Ex officio VAT group registration and proposed tightening of VAT registration rules
- Transfer pricing adjustment from a VAT perspective
- Company cars
- E-invoicing

Changes to the Tax Code
- Increase in penalties and incentives to pay earlier
- New enforcement tools of the tax authority for the recovery of outstanding tax arrears
- Tax amnesty

Updates in the area of electronic cash registers (eKasa)
Special levy in regulated sectors

Ex officio VAT group registration and proposed tightening of VAT registration rules

From January 1, 2026, the tax authority will be able to register two or more formally independent persons as a single “VAT group” even without their own initiative. In this way, the tax authority may respond to situations where business activities are split among several connected entities in order to (e.g., by splitting turnover or activities) retain the benefit of non-VAT payer status or other “advantages” under the VAT regime.

From April 1, 2026, in justified cases, the deadline for the tax authority to decide on an application for voluntary VAT registration is expected to be extended. The tax authority will be able to impose on a taxable person a so-called record-keeping obligation, i.e., the obligation to keep and retain specified records for VAT purposes. At the same time, the statutory grounds on which the tax authority may cancel a VAT registration are also expected to be expanded.

From January 1, 2027, it is proposed that, upon registration, the tax authority may require a high-risk taxable person to pay a VAT security deposit to cover future VAT arrears.

Should you be interested, we can assist in particular with:

assessing the risk that your structure may come under the tax authority’s scrutiny and setting up the related internal processes,
practical set-up of the VAT group regime and the related obligations.

Transfer pricing adjustment from a VAT perspective

The Court of Justice of the EU (CJEU), in its “Arcomet” judgment (C-726/23), confirmed that even intra-group payments that outwardly appear to be a “TP adjustment” (i.e., an arm’s length profit adjustment) may, under certain circumstances, constitute consideration for services and therefore fall within the scope of VAT. The decisive factor is whether there is a contractual relationship between the parties involving reciprocal performance and a direct link between the services provided and the payment (even if the consideration is variable and calculated based on a mechanism set out in the transfer pricing documentation).

At the same time, the CJEU also addressed the practical aspects of input VAT deduction: in the case of intercompany services, tax authorities may request additional supporting documentation beyond the invoice in order to demonstrate that the services were actually provided and used for taxable transactions – however, only to the extent that is necessary and proportionate.

We recommend focusing on the assessment of TP adjustments (annual “settlement” invoices, true-ups, management fees) and intercompany agreements – with a view to determining the correct VAT treatment.

Increase in penalties and incentives to pay earlier

The amendment to the Tax Code, effective from January 1, 2026, introduces changes primarily affecting penalties for the most common breaches of non-monetary obligations, such as failure to file a tax return, failure to comply with registration or notification obligations, failure to comply with a request of the tax authority, or failure to fulfil an obligation imposed by a decision.

What are the main changes in practice:

Tightening of sanctions: for several administrative offences, both the minimum (from EUR 30 to EUR 100) and the maximum limits (from EUR 32.000 to EUR 60.000) of fines are increased.
Greater focus on deadlines and responses to notices: higher risk in cases of delays (filings, registrations, notifications) as well as in the event of failure to fulfil obligations imposed by the tax authority.
Incentive element: if the taxpayer pays the assessed tax (or the tax difference) within 15 days of the delivery of the assessment decision, the penalty is reduced to 2/3.

With regard to the tax amnesty, we would also like to draw your attention to our previous mailing, in which we addressed its key principles, the scope of affected taxpayers and practical options for its use in practice.

New enforcement tools of the tax authority for the recovery of outstanding tax arrears

The forthcoming amendment to the Tax Code is expected to expand the tax authority’s options for the recovery of tax arrears. For example, it is being considered that, in the case of tax arrears, the tax authority could send an enforcement order directly to a bank and conduct auctions online. At the same time, the introduction of joint and several liability of shareholders and statutory bodies is to be reviewed – in addition to the suspension of a driving licence, also the possibility of enforcement against their assets if the tax arrears of a legal entity cannot be recovered.

We recommend reviewing whether you have sufficiently covered:

monitoring of deadlines (filings, registrations, notifications),
a process for the prompt handling of notices and decisions issued by the tax authority,
internal approval procedures and execution of payments.

The topic of effective management of tax obligations is also linked to our previous mailing on Tax Compliance Management Systems (TCMS) and international taxation, which remains relevant and provides a practical perspective on setting up internal tax processes.

Updates in the area of electronic cash registers (eKasa)

As of January 1, 2026, a completely new Act on Revenue Registration entered into force, replacing the current Act on the Use of Electronic Cash Registers.

Key changes introduced by the new law:

New obliged persons: The law introduces the term “seller” instead of “entrepreneur”. Going forward, any natural or legal person (regardless of their registered seat or place of business) receiving cash payments will be required to use eKasa – for example doctors, lawyers, architects, veterinarians, tax advisers or auditors.
Abolition of service exceptions: The obligation to register sales in eKasa is extended to almost all services.
Mandatory non-cash payment option (from March 1, 2026): Sellers using an eKasa will be required to allow customers to pay also cashless (e.g., by card, mobile payment or via a QR code).
Increase in penalties: Stricter sanctions apply for non-compliance, which may reach up to EUR 20,000.

All persons and entities receiving payments for goods or services will have to switch to fully online software solutions.

Company cars

We addressed the use of company cars for business purposes in more detail in a separate mailing, where you will find an overview of tax aspects, including the most common mistakes encountered in practice.

E-invoicing

You can find more information on the upcoming changes in the area of electronic invoicing, including the timeline and practical recommendations, in our previous mailing.

Special levy in regulated sectors

Are you a regulated entity and did your profit before tax exceed EUR 3.000.000? If so, you are subject not only to the obligation to calculate and pay the special levy, but also to various notification obligations.

The basis for calculating the special levy is the accounting profit/loss, which is multiplied by a coefficient. The coefficient is determined as the ratio of revenues from the regulated activity to total revenues. Before applying the coefficient, the levy base is reduced by income from a government bond and by income from a bond issued by an EU or EEA Member State. The adjusted base is then multiplied by the applicable levy rate. The levy rate is stipulated by law and differs depending on the regulated sector.

The levy period is a calendar month, and the levy is payable no later than the last day of the calendar month. If the amount of the levy does not exceed EUR 1.000, the levy is not payable.

Companies performing a regulated activity may also be subject to various notification obligations. All notifications must be submitted on the prescribed forms, the templates of which are issued by the Financial Directorate of the Slovak Republic and published on its website.

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