Amendment to VAT Act brings several changes

The Value Added Tax Act has undergone further changes as of January 1. The most important is the introduction of a 10% value added tax rate on accommodation services. The lower rate, however, only applies to accommodation and does not apply to related services such as meals, unless they are included directly in the accommodation price. As the Slovak Chamber of Tax Advisers further points out, another significant change in the law concerns rentals. As of January 1, renting an apartment, a family house, or a short-term rental apartment is exempt from the value-added tax. "The aim is to prevent fraud in such cases where a rented apartment was declared to be for business purposes, but in reality was for personal consumption," says Soňa Ugróczy of the Chamber.