Ing. Viktória Horáčiková
Tax Advisor
VAT registration is one of the most frequently discussed topics among entrepreneurs, accountants, and tax advisors. The Slovak VAT Act distinguishes three main registration regimes, each with different rights, obligations, and purposes. To correctly determine which regime applies, an entrepreneur must first understand the concept of a “taxable person.”
For taxable persons with a registered seat, place of business, establishment, residence, or habitual abode in the Slovak Republic, there are three types of VAT registration: registration under § 4, registration under § 7, and registration under § 7a of the Slovak VAT Act.
While registration under § 4 grants the full status of a VAT payer—including the right to deduct input VAT—registrations under § 7 and § 7a exist exclusively to fulfill cross-border obligations. Persons registered under § 7 or § 7a do not become VAT payers, they only acquire the status of a person registered for VAT.
Registration under § 7: Acquisition of Goods from Another EU Member State
Registration under § 7 is required when acquiring goods from other EU Member States. The obligation arises once the total value of such goods reaches €14,000 (excluding VAT) in a calendar year. The application must be filed before the transaction that exceeds this threshold takes place.
A person registered under § 7 must apply the reverse-charge mechanism when acquiring goods in Slovakia; however, this status does not grant the right to deduct VAT. If the entity is already a VAT payer under § 4 or is registered under § 7a, registration under § 7 does not apply.
Registration under § 7a: Cross-Border Supply and Receipt of Services
Registration under § 7a applies to cross-border services supplied or received between taxable persons within the EU. Registration is required before supplying services to another EU Member State or before receiving services from an EU supplier if reverse charge is applicable.
Obligations of a § 7a registrant include filing EC Sales Lists when supplying services to EU recipients and applying reverse charge to received services. Like § 7, this regime does not allow input VAT deduction on domestic purchases.
Comparison of Registrations under § 4, § 7, and § 7a
- The main differences lie in the scope of rights and obligations. The following table provides a practical overview:
| Parameter | § 4 (VAT Payer) | § 7 (Goods from EU) | § 7a (EU Services) |
| Status | VAT payer | VAT-registered person | VAT-registered person |
| Scope | Supply of goods/services in Slovakia | Acquisition of goods from EU | Receipt/supply of services within EU |
| Threshold | Turnover exceeding €50,000 / €62,500 | Value of acquired goods > €14,000 | No financial threshold |
| Tax obligation | Output VAT on domestic supplies | Reverse charge on acquired goods | Reverse charge on received services |
| Input VAT deduction | Yes | No | No |
| Returns | VAT return, Control Statement, EC Sales List | VAT return | VAT return + EC Sales List (for EU services) |
| Registration deadline | Within 5 business days | Before exceeding €14,000 threshold | Before supplying/receiving service |
Example 1: Purchasing Goods from the EU with § 7a Registration
A taxable person registered only under § 7a plans to purchase goods from Germany worth €3,500. Since they have not exceeded the €14,000 threshold under § 7, they may choose whether to provide their VAT ID.
- a) VAT ID is not provided:
The supplier charges German VAT, and the acquisition is not subject to VAT in Slovakia. No reverse charge applies. - b) VAT ID is provided:
The supplier issues the goods VAT-exempt, and the recipient must apply reverse charge in Slovakia. Since § 7a does not allow input VAT deduction, the VAT becomes a cost.
Example 2: Reverse Charge on Services from a Third Country (Without Registration)
If a taxable person who is not registered under § 4, § 7, or § 7a receives a service from a third country and the place of supply is Slovakia, the recipient must apply reverse charge.
No § 7a registration is required because § 7a applies only to services from the EU. The recipient must file a one-time VAT return and pay the VAT in Slovakia.
Summary for Professional Practice
Registrations under § 7 and § 7a are intended solely to meet specific cross-border obligations and do not allow the deduction of input VAT. When purchasing goods from the EU below the €14,000 threshold, it may sometimes be more advantageous not to provide the VAT ID. For services from third countries, a one-time VAT return is often sufficient without § 7a registration.
Correctly identifying the applicable registration regime is essential to avoiding tax risks and unnecessary costs. In case of uncertainty, it is advisable to consult a tax advisor who can assess the transaction based on the specific circumstances.
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