Slovakia Temporarily Reduces VAT Rate on Restaurant and Catering Services
The National Council of Slovak Republic has, on second reading, approved the proposed amendment of the VAT law. The VAT rate for catering and restaurant services will be temporarily reduced.
Timeline
The reduced rate will be applied from January 1, 2023 through March 31, 2023.
Impact
The amendment, among other changes, decreased the VAT rate from 20% to 10% on certain restaurant and catering services.
Not all catering services will qualify for the reduced 10% rate. Special conditions must be met. For example, delivery of food is excluded from this temporary reduction. There are additional distinctions made for food prepared and sold at kiosks or shops on wheels, versus that prepared at a restaurant establishment. Food prepared and sold at kiosks or shops on wheels will remain subject to the 20% rate. In drafting the law, lawmakers were more focused on the place/type of service provided than on the goods sold. These distinctions may cause confusion for both merchants and final consumers.
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