Slovakia had previously set out an intention to introduce a mechanism by which taxpayers could have recovered import VAT via a reverse charge mechanism in the VAT return as opposed to paying the customs authority before the goods could be released.
This ‘postponed import VAT’ procedure has been adopted by several other EU Member States such as Netherlands, Belgium and Luxembourg and results in a reduced cash flow impact for the payment of import VAT for those businesses which can apply the system.
However, proposed amendments to the Slovakian VAT legislation point to its application being delayed indefinitely. It was meant to start 1 January 2017 but now looks like it will only start when the public administration debt in Slovakia reduces to a legally defined level. This is not yet known hence it cannot be predicted when this VAT simplification will be available.