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In order to increase the availability of literature and to promote books and music, the VAT rate was decreated to 10%.

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Slovakia/ 5.1 General legislation  

5.1.5 Tax laws

The tax reform in Slovakia, carried out between 2004 and 2006, resulted in the introduction of a unified individual income tax rate, a corporation income tax rate and VAT in the amount of 19% from the tax base.

With regard to the course of tax reform, the Ministry of Finance dissented from the proposals regarding the application of tax tools (a decrease in tax liability, deductible items from the tax base, tax stimulus) focused on the increase of private investments in culture. Non-profit non-governmental organisations (NGO), focusing their activities in the field of cultural heritage, have been included on the list of authorised recipients of direct allocation of 2% tax from the individual income tax rate and corporation income tax. This direct allocation is on a voluntary basis and every taxpayer can specify such organisations as a recipient. A recipient of these funds must have been in operation for at least one year in the area stipulated by law and must be registered in the central register by Notary Offices.

In order to increase the availability of literature and to promote reading of books, the goods item books and music has been reclassified from 1 January 2008 to receive a decreased VAT rate of 10%. This reclassification includes school books and is in accordance with the European Directive on a common system of VAT. Publishers of books and music consider this tool to be of great assistance to the book market, resulting in the slowing down of the increase in the prices of books and music.

Chapter published: 15-01-2008

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