What to watch out for with receipts over €400 from January 1, 2025?
Until now, entrepreneurs could issue simplified invoices up to €1,000 for cash payments and up to €1,600 for card payments.
From January 1, 2025, entrepreneurs will face another change in the tax area – changes regarding receipts over €400. This change concerns how these receipts are recorded in accounting, especially in relation to VAT deductions and including expenses.
New rules for receipts over €400 and VAT deduction – what is changing?
The new legislation stipulates that receipts over €400 are no longer sufficient as simplified invoices. In other words, if the value of the purchase exceeds this amount, it will no longer be possible to use the receipt for VAT deduction. A regular invoice will be required for this purpose.
How will the new rules for VAT deduction affect entrepreneurs?
- If you are the buyer
- A receipt over €400 no longer allows for VAT deduction. This means that even though you can include the goods or service in your expenses, without a regular invoice, you won’t be able to deduct VAT.
- Solution: Ask the supplier for a regular invoice! Only with an invoice can you deduct VAT.
- If you are issuing a receipt
- If you are an entrepreneur issuing receipts, for payments over €400, you are required to issue a receipt from an e-cash register that meets the requirements of §74 (1) of the VAT Act or issue an invoice to the customer.
Summary of important changes for VAT deduction
- Receipts over €400 are no longer sufficient as simplified invoices.
- VAT payers cannot deduct VAT in such cases.
- Entrepreneurs must issue documents that meet the requirements of §74 (1) of the VAT Act for higher amounts.
This amendment aims to increase control over tax deductions and prevent tax evasion. Therefore, it is important to ensure that all documents are properly recorded and to request a regular invoice if the receipt exceeds €400.
If you are a business owner and want to ensure that your receipts over €400 comply with all legal requirements, or if you need assistance with proper accounting and VAT deductions, do not hesitate to contact us.
Effix s.r.o. will provide you with professional assistance in processing invoices and receipts in accordance with the new rules that came into effect on January 1, 2025.
Contact us:
Phone: +421 949 299 992
Email: office@effix.sk
Effix s.r.o. is here to offer you professional help and support in navigating these changes in the VAT area.
Act No. 222/2004 Coll. on Value Added Tax
§ 74 Invoice Content (approximate translation of Slovak legal citations)
(1) An invoice issued by a person according to § 72 must contain:
a) the name and surname of the taxable person or the name of the taxable entity, the address of its registered office, place of business, branch, residence, or the address of the place where they usually stay, and its tax identification number under which the goods or services were supplied,
b) the name and surname of the recipient of the goods or services, or the name of the recipient of the goods or services, the address of their registered office, place of business, branch, residence, or the address of the place where they usually stay, and their tax identification number under which the goods were delivered or the service provided,
c) the invoice number,
d) the date when the goods or services were delivered or the date when payment was received, if this date can be determined and differs from the date the invoice was issued,
e) the date the invoice was issued,
f) the quantity and type of goods supplied or the scope and type of services provided,
g) the tax base for each tax rate, unit price excluding tax, and any discounts and rebates, if not included in the unit price,
h) the applicable tax rate or exemption from tax; in case of tax exemption, reference to the relevant provision of this law or Council Directive 2006/112/EC of 28 November 2006 on the common system of value-added tax in its valid version, or the verbal information “the supply is exempt from tax”,
i) the amount of tax due in euros, excluding the tax applied under special regulations according to § 66,
j) the verbal information “invoice issued by the recipient”, if the recipient of the goods or services issues the invoice according to § 72 (6),
k) the verbal information “reverse charge”, if the recipient of the goods or services is the person liable to pay tax,
l) information about the supplied new means of transport according to § 11 (12),
m) the verbal information “adjustment of tax on margin – travel agencies”, if special regulation according to § 65 is applied,
n) the verbal information “adjustment of tax on margin – used goods”, “adjustment of tax on margin – works of art” or “adjustment of tax on margin – collectibles and antiques”, depending on the goods for which special regulation according to § 66 is applied,
o) the name and surname or the name of the tax representative according to § 69a or § 69aa, the address of their registered office or residence, and their special tax identification number, if a foreign person is represented by a tax representative according to § 69a or § 69aa.