TAXES

Even though taxes are a part of our daily lives, they are often a bit scary, and not only for young people. Come find out more about them!

Taxes are funds that citizens pay to the state based on specific laws. The state then finances public expenses such as education, healthcare, road reconstruction and the like with the given means.

Main types of taxes

The tax system in Slovakia consists of several types of taxes. Below we offer you their division and list together with their brief characteristics.

INCOME TAXES

It is a type of direct tax – you pay them as part of what you earn. It is divided into personal income tax and corporate income tax. You can read more about this type of tax in the income tax section.

MOTOR VEHICLE TAX (FORMERLY ROAD TAX)

You have to pay this tax if you own a vehicle registered in Slovakia and use it for your business. You can read more about motor vehicle tax on the slovensko.sk.

VALUE-ADDED TAX (VAT)

This tax is included in the amount you pay for the goods and services you buy. It is a type of indirect tax. The amount of this tax is currently 20%. A reduced rate of 10% applies to some goods and services, such as the sale of books, selected medical aids or accommodation services.

As an ordinary citizen (natural person), you will not encounter this type of tax very often, except that you have to pay it. However, if you want to do business, you must register. The following link will tell you more about the value-added tax.

CONSUMPTION TAXES

It is a type of indirect tax that you pay only for specific products. Specifically, in Slovakia, we are paying:

  • tax on alcoholic beverages, such as alcohol, wine or beer,
  • tax on tobacco products such as cigarettes and tobacco,
  • tax on electricity, coal and natural gas,
  • tax on mineral oil, i.e. diesel or petrol.

Similar to VAT, this tax is included in the amount you pay for the above products. Click on the following link to learn more about excise duties.

LOCAL TAXES (PROPERTY TAXES)

The municipalities impose these taxes, which also determine their amount and the conditions for their reduction or possible complete remission. The main types that could concern you are:

  • property tax,
  • dog tax
  • tax for the use of public space,
  • accommodation tax,
  • tax for the entry and stay of a motor vehicle in the historical part of the city.

You can learn more about local taxes on the official website of your municipality. If you can’t find the page, this portal can help you.

The municipality also imposes a local fee for municipal and small construction waste in addition to these taxes. For more information on housing fees, go to the energy and services page.

You can read more about taxes, for example, on the official website slovensko.sk, which is managed by the state, and therefore the information on it should always be up to date. In addition, you can click on other links within this page and find exactly what interests you.

The page of the Financial Administration, which provides detailed information for citizens and entrepreneurs, can also help you. As with the previous portal, here you will find several other sub-pages – the Financial Administration also provides specific information, amounts, percentages and exceptions. It is also a suitable source for finding the information you need to fill out the tax return – you can read more about this further down in the Tax return section.

The Financial Administration page also contains electronic forms with some directly embedded mathematical functions. You can calculate many important operations to avoid possible mistakes. Such a form must be printed, completed, signed in all highlighted places and submitted.

Another possible source is podnikajte.sk containing articles from various fields. The state does not manage this page. Its content is more personal, more direct, and thus more understandable for many. However, it mainly contains information specifically about income taxes.

Did we forget something? At the bottom of the page, you will find a form in which you can let us know what you are missing in this part of the page and what other information we should add to the page regarding any of the topics.

Income tax and tax return

Although the tax system in Slovakia is composed of several types of taxes, income tax is often the most problematic. It works so that you pay it as a certain part of what you earn during the year. It is divided into personal income tax and corporate income tax.

Who files a tax return?

Anyone whose taxable income has exceeded a certain threshold in a given year must file a tax return. In 2021, it was 2,255.72€, but this amount changes yearly! You can view the latest information directly on the Financial Administration page.

You will also read in detail what taxable income means and, therefore, which incomes you must tax. Among those from which you have to pay a part to the state (if they exceed a precisely determined amount), income from employment or business is counted, and others, such as income from winnings or renting real estate. On the other hand, non-taxable income includes, among other things, gifts, credits and loans, scholarships or inheritance.

If in one year you receive income only from so-called dependent activity, i.e. you have a contract or agreement with an employer (whether it is part-time, full-time or part-time, or another type), you have the right to ask him to perform an annual accounting for you. Subsequently, you do not have to file a tax return even if your income exceeds the specified limit. But you have to ask him for it in January! Otherwise, you will have to fill out the tax return yourself.

If you decide to file a tax return or you have to file it, since, in a given year, your account also received income other than that from employment (for example, from a trade or from renting real estate), you will have to fill out an extensive form.

There are two types of tax returns – type A and type B. Type A is the right one for you if your income in a given year was only from employment. The type B tax return applies to you in all other cases, i.e. if you run a business, are self-employed, rent real estate, etc.

When is the tax return submitted?

Tax returns are usually submitted by March 31 of the given year. If you need to extend this deadline, it is possible. However, at the latest, you must request it in writing by the end of March.

There are two ways to file a tax return – physically or electronically. Some persons are obliged to communicate with the Financial Administration electronically. Others can choose the method of submission according to what suits them best. You can get more accurate information on the website slovensko.sk.

If you decide to submit the tax return physically, you will have to go to the local tax office. But suppose you use the option to do everything electronically. In that case, you need to have an ID card with a chip, remember your BOK code that was created for you when you got your ID card, an ID card reader and a sufficient amount of patience to install all the necessary verification applications. After clicking on the following link, you will find, among other things, the procedure for electronic submission.

In some cases, it is worthwhile to file a tax return even though your income did not exceed the specified minimum for the given year. If you did not or did not submit the so-called Declaration for applying the non-taxable part of the tax base, your employer withheld a certain amount of your income, which will be paid back to you based on the tax return.

If you decide to submit your tax return electronically and you are doing so for the first time, it is essential not to leave it to the last minute! The entire registration and authorisation process may take some time, and it will probably take you some time to “get used to” this system.

In case of any confusion (not only regarding taxes), you can also contact the Financial Administration by phone, email, post or online chat. If you have a problem submitting documents electronically, you can use Skype support.

If you want to learn more about the topic, we recommend listening to ordinary conversations about money, which you can find under the MONEY TALKS podcast.

Don’t forget to listen to our podcast with tax expert Zuzana Šutyová, who will explain how to file a tax return. He will advise you on dates and responsibilities and show you ways to make this, at first glance, the scary process easier

Listen on your favourite podcast platform: