Foreign companies trading with Slovakia often ask whether they need a Slovak VAT number, a tax representative, or both. The answer depends on the transactions they carry out in Slovakia. Act No. 222/2004 Coll. on Value Added Tax (zákon o DPH) distinguishes between the registration of a foreign person and several forms of tax representation. In this article we explain when each option applies.
Who is a foreign person for VAT purposes
Under § 5(1) of the VAT Act, a foreign person is a taxable person that has no registered office, place of business, fixed establishment or residence in Slovakia and does not usually reside there. Such a company becomes a VAT payer in particular if it:
- supplies goods or services in Slovakia that are subject to VAT (with the exceptions listed in § 5(2)),
- receives a payment before such a supply,
- acquires goods in Slovakia from another Member State.
Foreign persons are registered by the Tax Office Bratislava (Daňový úrad Bratislava). The law sets a short deadline for filing the registration application, so it is advisable to deal with it before the first transaction. No turnover registration threshold applies to foreign persons.
When registration is not required
A foreign person does not become a VAT payer if it carries out in Slovakia only certain transactions listed in § 5(2) – for example those where the recipient pays the tax (reverse charge), certain exempt transport services, or triangular transactions. Each case needs to be assessed individually.
Three situations in which tax representation makes sense
1. Import of goods followed by a supply to another Member State (§ 69a)
If a foreign company imports goods from a third country through Slovakia and ships them to a customer in another EU Member State (customs procedure 42), it may, under § 69a of the VAT Act, be represented by a tax representative. For this purpose the representative receives a special VAT identification number from the Tax Office Bratislava, files the VAT return and EC Sales List on behalf of the represented importers, and in that case the foreign importer does not need to register in Slovakia.
2. Acquisition of goods intended for onward supply (§ 69aa)
§ 69aa governs the tax representative for the acquisition of goods in Slovakia from another Member State where the goods are intended for supply to another Member State or to a third country. This form suits traders who only store or tranship goods in Slovakia for a short time and resell them outside Slovakia.
3. Standard registration with an authorised representative
If a company sells goods or services in Slovakia and cannot avoid registration, it may appoint a representative under a power of attorney pursuant to the Tax Procedure Code (daňový poriadok). The representative files its VAT returns, VAT control statements and EC Sales Lists and communicates with the tax authority in Slovak.
Tax representative vs. registration: a comparison
- Own registration – the company has its own Slovak VAT number, keeps records and files all returns itself or through an authorised representative.
- Tax representative under § 69a / § 69aa – within the scope of representation the foreign company does not need its own registration; the representative reports the transactions under its special VAT identification number and, within the scope of the power of attorney, has the rights and obligations of the represented person.
The Slovak Financial Administration (Finančná správa SR) has confirmed that a single foreign importer may also use different tax representatives for individual imports, provided each of them holds a valid power of attorney.
What to watch out for
- The power of attorney for § 69a must contain the particulars required by law, including a declaration that the represented person is a foreign person that is not a VAT payer.
- The tax representative files returns by the 25th day after the end of the month; late filings may lead to penalties and, for repeated breaches, to the cancellation of the special VAT identification number.
- For sales of goods to final consumers within the EU (e-shops), the distance-selling rules and the OSS scheme must also be taken into account.
- Representation does not replace commercial documentation – transport documents and proof of delivery must always be available.
Frequently asked questions
Is tax representation mandatory in Slovakia?
Not in all cases. The VAT Act allows a foreign person to register directly. However, a tax representative under § 69a or § 69aa is advantageous if the company wants to reduce administration and avoid its own registration.
Who can act as a tax representative?
A tax representative under § 69a is a VAT payer registered in Slovakia to whom the Tax Office Bratislava, upon application, assigns a special VAT identification number.
Does a foreign company need a branch in Slovakia?
No. A foreign person is precisely a company without a registered office or fixed establishment in Slovakia; both registration and representation are possible without one.
Need tax representation in Slovakia? Entity & Company, s.r.o. provides fiscal and tax representation to foreign companies, VAT registration and ongoing reporting, backed by more than 20 years of experience. Find out more on our fiscal representation page, or contact us at info@entity-company.com or +421 55 381 6786.