The application for refund of the Slovak VAT to a foreign person from another Member State is regulated by the provisions of § 55a to § 55e of the Act No. 222/2004 Coll. on Value Added Tax, as amended. According to these provisions, a foreign person from another Member State may apply for refund of the Slovak tax paid by that person at purchase of goods and services in this country (SR) or at import of goods to this country, upon satisfaction of certain conditions.
The application for tax refund is filed by a foreign person from another Member State by electronic form via the electronic portal of the relevant Member State (i.e. the Member State where the foreign person has a seat, place of business, fixed establishment or domicile, or has a habitual residence). Then the competent body of the foreign person´s Member State shall send the application by electronic mail to the Bratislava Tax Office that will decide on the application for tax refund.
1. Who may apply for refund of the Slovak VAT
The tax refund may be applied by a foreign person having a registered seat, place of business, establishment, residence or habitual abode in another Member State (applicant). A foreign person from another Member State is entitled to tax refund from any goods and services supplied to that person by a payer in the SR, and entitled to refund of the tax assessed at import of any goods in the SR, upon satisfaction of the conditions set forth in § 55a(2) to (5) and § 55b to § 55e of the VAT Act.
Conditions for tax refund
A foreign person from another Member State is entitled to tax refund, if:
- That person is identified for tax in the Member State where that person has a registered seat, place of business, establishment, residence or habitual abode.
- In the period for which the application for tax refund is filed, that person had no registered seat, place of business, establishment residence, nor habitual abode in the SR.
- In the period for which the application for tax refund is filed, that person had not supplied any goods or service in this country, other than the supply of:
- any transportation services and supplementary services relating thereto, which are relieved from tax according to § 47(6), (8), (10) and (12) and § 48(8),
- any services and supplies of goods with installation or assembly, if the person obligated to pay the tax is the recipient according to § 69(2) and (3),
- any goods according to § 13(1)(e) and (f) – at supply of gas, electricity, heating and cooling, if the person obligated to pay the tax is the recipient of the goods according to § 69(9),
- any goods from this country to another Member State, that were imported from a third country by the foreign person that was represented by the tax representative according to § 69a,
- any goods within trilateral trade according to § 45, where the foreign person participated as the first customer and the person obligated to pay tax is the second customer.
- In the foreign person´s Member State (i.e. in the Member State where that person has a registered seat, place of business, establishment, residence or habitual abode), the person performs any taxable transactions connected with the right for tax deduction. If the foreign person performs any taxable transactions in his Member State, where tax may be deducted, and at the same time any taxable transactions where the tax may not be deducted, the person is entitled to refund a pro rata amount of the tax, that will be computed according to the rules applicable in that person´s Member State.
- The tax may be deducted in the SR according to § 49 of the VAT Act.
When a foreign person from another Member State is not entitled to tax refund
- If the tax is not deductible in the SR according to § 49 of VAT Act. According to § 49(7) of the VAT Act, the tax may not be deducted at purchase of any goods and services for the purposes of amusements and entertainment and at transitional items according to § 22(3) of the VAT Act.
- If the supplier has not applied the tax in accordance with the VAT Act.
- If the tax was applied in respect of any goods which are or may be relieved from tax according to § 43 or § 47(2) of the VAT Act.
- If the foreign person applies special regulations for applying the tax for travel agencies, that person is not entitled to tax refund in respect of any tourism services.
2. Filing of the application for tax refund
Period for filing the application and minimum amount of the applied tax
The application for tax refund is filed for the period of maximum one calendar year and the applied amount of tax must be minimum EUR 50. The application for tax refund may be filed for any period shorter than one calendar year, but not shorter than three calendar months, and the applied amount of tax must be minimum EUR 400. The tax refund may apply to a period shorter than three calendar months, if that period represents the rest of a calendar year and the applied amount must be minimum EUR 50 (§ 55c(1) of the VAT Act).
The applicant may file only one application for tax refund for precisely the same tax refund period. The application may be filed for a period of maximum one calendar year, but also for a period shorter than one calendar year – however, minimum for three calendar months (or less than three calendar months if they represent the rest of a calendar year), and the periods may overlap. For example, the applicant may file an application for tax refund for the period 1-4/2013, for the period 3-9/2013, and for the period 1-12/2013 (provided that the invoices and import documents are not repeated in the individual applications).
Exception:
If the reason for filing several applications for tax refund for the same tax refund period is the fact that the volume of copies of documents sent by electronic mail as attachments to the application for tax refund (that are required according to § 55b(5) of the VAT Act) exceeds 5 MB, in that case the financial administration of SR accepts several applications filed for the same tax refund period.
Deadline for filing the application
The application for tax refund should be filed no later than by 30th September of the calendar year following the period for which the tax refund is applied.
Method of filing the application
The application for tax refund is filed in electronic form via the electronic portal of the person´s Member State. The competent body of the applicant´s Member State shall send the application for tax refund by electronic mail to the Bratislava Tax Office.
3. Content of the application for tax refund
Requirements of the application
The application for tax refund must contain the information set forth in § 55b(2) of the VAT Act:
- a) the applicant´s (foreign person´s) surname and name or business name, and address of his registered seat, place of business, establishment, residence or habitual abode,
- b) the applicant´s electronic address,
- c) description of the applicant´s business activities for which the goods and services have been acquired, stating the corresponding numerical code according to a special regulation, namely the Council Regulation (EEC) No. 3037/90 of 9 October 1990 on the statistical classification of economic activities in the European Community (OJ L, chap. 2/vol. 4) in valid version,
- d) the period according to § 55c(1) of the VAT Act, to which the application applies,
- e) the applicant´s declaration that the applicant satisfies the condition according to § 55a(2)(c) of the VAT Act, i.e. that in the period for which the application for tax refund is filed that applicant had not supplied any goods or service in this country, with the exceptions set forth in that provision,
- f) the identification number of the applicant´s tax or the applicant´s tax registration number allocated in another Member State,
- g) the information on the applicant´s bank account, including the international bank account number (IBAN) and the bank identifier code (BIC).
In addition to the above requirements, the application for tax refund according to § 55b(3) of the VAT Act must contain the information from each invoice for supply of goods or services and from each import document in respect of which tax refund is applied by the applicant, namely the following:
- a) the supplier´s surname and name or business name and the address of the supplier´s registered seat, place of business, establishment, residence or habitual abode,
- b) the identification number of the supplier´s tax, allocated in this country, except for import of goods,
- c) the date of issue of the invoice, the number of invoice, and the date and number of the import document,
- d) the tax base and the amount of the value added tax in euros,
- e) the amount of the deductible tax according to § 55a(3) and (4) of the VAT Act,
- f) if required, the pro rata amount of the deductible tax according to § 55a(3) of the VAT Act, expressed in percentage,
- g) the numerical code according to § 55b(4), which applies to the acquired goods and service, and in case of using the numerical code 10, the type of acquired goods and service,
- h) the subcode according to a special regulation (Commission Regulation No. 1174/2009) in case of using the numerical code 9 according to § 55b(4)(i) of the VAT Act.
In order to unify and simplify the procedures in respect of the tax refund within the Member States, the following numerical codes have been adopted, that express the type of acquired goods and services (§ 55b(4) of the VAT Act):
- a) fuel – numerical code 1
- b) hiring of means of transport – numerical code 2
- c) expenditure relating to means of transport other than those that are related to the goods and services set forth in paragraphs (a) and (b)above – numerical code 3
- d) road tolls and road user charge – numerical code 4
- e) travel expense relating to transport of passengers – numerical code 5
- f) accommodation – numerical code 6
- g) food, drink and restaurant services – numerical code 7
- h) admissions to fairs and exhibitions – numerical code 8
- i) expenditure on luxuries, amusements and entertainment – numerical code 9
- j) any goods and services, other than those set forth in paragraphs (a) to (i) above – numerical code 10 (in case of the numerical code 10, it is required to state the type of goods and service).
At the numerical code 9, the application should contain also the subcode, because in the SR there is a limited right for tax deduction in respect of the numerical code 9, arising from § 49(7) of the VAT Act at purchase of goods and services for the purposes of amusements and entertainment. The subcodes of code 9 are:
9.1. Purchase of alcohol
9.2. Purchase of manufactured tobacco
9.3. Expenditure on receptions and entertainment
9.3.1. For publicity purposes
9.3.2. Not for publicity purposes
9.4. Expenditure on maintenance of pleasure craft
9.5. Expenditure on works of art, collectors´ items and antiques
9.6. Expenditure on luxuries, amusements and entertainment for advertising
9.7. Expenditure on luxuries, amusements and entertainment other than 9.1., 9.2., and 9.3.
The information in the application for tax refund must be given by the applicant for tax refund in the Slovak language or English language.
Invoices included in the application
The application for tax refund according to § 55c(2) of the VAT Act applies for:
- a) any purchase of goods and services that were invoiced during the period to which the application for tax refund applies, if the tax obligation existed before issuing the invoice or at the time of issuing the invoice or in respect of which the tax obligation existed during the period to which the application for tax refund applies, if the purchase had been invoiced before existence of the tax obligation,
- b) any import of goods, that was performed during the period to which the application for tax refund applies.
Tax refund from „forgotten invoices“
According to § 55c(3) of the VAT Act, the application for tax refund may apply also to any invoices or import documents that were not included in the previous applications for tax refund and which relate to any transactions that were performed during the period of the relevant calendar year. This provision applies to that applicant for tax refund, who files the application for tax refund for a period shorter than a calendar year, and allows the applicant for tax refund to include in the application for the relevant period also the so-called “forgotten” invoices. For example, the application for tax refund filed for the 4th quarter 2013 may contain also the invoices or import documents from the 1st, 2nd or 3rd quarter 2013.
Copies of documents attached to the application
According to § 55b(5) of the VAT Act, if the tax base in the invoice or import document is EUR 1,000 and more or in an invoice on purchase of fuel it is EUR 250 and more, the applicant is obligated to send, together with the application for tax refund in electronic form, a copy of the invoice or import document.
If the aggregate volume of data attached to the application for tax refund exceeds 5 MB upon compression, the Member States agreed that the marginal limit of the volume of sent data is 5 MB per one Member State per one period. Therefore, it is possible for the applicant to attach to the application only the invoice with the highest amount of tax up to the marginal limit of 5 MB. If the applicant attaches only the invoice with the highest amount of tax up to the marginal limit of 5 MB, the Bratislava Tax Office will request the applicant to submit additional information and any missing documents.
If the aggregate volume of data that are required exceeds 5 MB upon compression, the applicant may file several applications for tax refund for the same period.
Entitlement to refund a pro rata amount of the tax and correction of deductible tax
If the applicant performs any taxable transactions in his Member State, in respect of which tax may be deducted, and at the same time any taxable transactions in respect of which tax may not be deducted, the applicant is entitled to refund a pro rata amount of the tax that will be computed according to the rules applicable in his Member State.
If, upon filing the application for tax refund (where the applicant applied for refund a pro rata amount of the tax), the applicant adjusts the deductible part of tax according to the Act applicable in his Member State, the applicant is obligated to correct the amount of the tax that is applied for or the amount of the tax that has been already refunded to the applicant (§ 55c(4) of the VAT Act). The deductible tax will be corrected by the applicant in the application for tax refund filed for the next following period and if no application for tax refund is filed for the next following calendar year, then the tax is corrected in a separate declaration sent via the electronic portal of the applicant´s Member State (§ 55c(5) of the VAT Act).
4. Correction of information in the application
The electronic system of tax refund allows, in addition to receipt of the applications for tax refund, also receipt of the so-called new versions of applications for tax refund. A new version of the application is created always from the last existing version of the application for tax refund. In the new version of the application for tax refund, only certain corrections can be made (e.g. correction of an incorrect NACE code, supplier´s address, addition of a subcode), it is not permitted to cancel or add any additional purchases of goods and services.
5. Representing the foreign person in tax refund
A foreign person from another Member State may apply for tax refund by himself or may be represented by a representative. If the foreign person authorizes a representative to act in the tax refund procedure, the application for tax refund will be completed by the representative, and the part named „representative“ will contain the representatives´ identification data. The authorization must be furnished to the Bratislava Tax Office according to § 9 of the Act No. 563/2009 Coll. on administration of taxes (Tax Code). If Bratislava Tax Office requests any other information in connection with the filed application for tax refund, it shall act in the tax refund process with the foreign person´s representative.
6. Periods for dealing with the application
Confirmation of receipt of the application
When the applicant files the application for tax refund in electronic form via the electronic portal of his Member State, that Member State has a 15-day period for sending the application by electronic mail to the relevant Member State of tax refund. The competent authority of the applicant´s Member State shall send the application for tax refund by electronic mail to the SR – the Bratislava Tax Office with confirmation that the foreign person applying for tax refund is a taxable person for the purposes of the value added tax and that the identification or registration number stated by that person is valid for the tax refund period. The Bratislava Tax Office will immediately notify the applicant, by electronic mail, about the date of receipt of the application for tax refund.
Period for deciding on the application
The Bratislava Tax Office will notify the applicant about its decision on the application for tax refund within four months of the date of receipt of the application, except for the case when the Bratislava Tax Office requests any additional information or any other supplementary information. If the Bratislava Tax Office requests any additional information or any other supplementary information, the period for notification of the decision on the application for tax refund will be extended (to maximum eight months of the date of receipt of the application). The given periods are stipulated in § 55d of the VAT Act.
The decision is regarded notified on the date of sending the data message to the electronic address (e-mail address) set forth in the application for tax refund, and the other periods shall start on that date – e.g. the period for tax refund and for appeal.
If the Bratislava Tax Office decides on refund of the tax, the tax will be refunded no later than within ten business days following the expiry of the period for notification of the decision on the application for tax refund. The Bratislava Tax Office shall refund the tax to the account maintained with a bank in the SR or based on the applicant´s application, to an account maintained with a foreign bank in another Member State (in case of tax refund to an account maintained with a foreign bank in another Member State, the amount of tax will be less the bank charges for transfer of funds).
Appeal against denial of the application
If the Bratislava Tax Office decides on the application for tax refund by denying the application for refund of the whole tax or any part thereof, the decision must contain also the grounds for the decision. The decision on denial of the application for refund of the whole tax or any part thereof may be appealed by the applicant according to § 72 Act No. 563/2009 Coll. on tax administration (Tax Code), i.e. in writing or orally in the protocol made at the tax administrator, within 15 days of the date of delivery of the appealed decision.
7. Legislation
