VAT news [May 2026]
The Court of Justice of the European Union issued several noteworthy decisions in the area of VAT. In one case concerning transfer pricing, it addressed the tax treatment of adjustments resulting from subsequen…
News on the financial transaction tax in Slovakia
The new financial transaction tax in Slovakia will impact selected financial transactions from April 2025. Which activities will be affected? What should companies watch out for? And what recommendations and detailed explanations have been issued by the Ministry of Finance of the Slovak Republic regarding the new law? Find all the essential details in our article.
The following activities will be subject to the financial transaction tax:
– Debit transactions on a payment account:
- Tax rate: 0.4% of the debited amount,
- Maximum tax: 40 euros per each financial transaction.
– Use of a payment card issued to the transaction account:
- Tax rate: 2 euros for the calendar year in which it was used.
– Cash withdrawal:
- Tax rate: 0.8% of the withdrawn amount.
– Recharged costs associated with executing a financial transaction:
- Tax rate: 0.4% of the amount of recharged costs;
- Maximum tax: 40 euros if the taxpayer can prove financial transactions conducted by another person;
- Possibility to deduct previously paid tax from the tax due.
On April 10, 2025, the Ministry of Finance of the Slovak Republic published Guidance No. MF/008722/2025-77, providing important practical explanations for the application of the financial transaction tax law in three key areas:
- Evaluation of the taxpayer’s activities in the territory of the Slovak Republic:
The methodology is based on the definition of a permanent establishment according to the Income Tax Act, extending to specifics such as e-commerce. It also demonstrates through practical examples when activities in Slovakia become subject to the financial transaction tax and when they do not.
- Taxation of recharged costs:
It clarifies that if the original financial transaction is not subject to tax, tax will not be applied upon its recharge. The term recharged costs also applies to cost distribution. Examples illustrate the use of the 40-euro limit and tax deduction if tax has already been paid from the transaction.
- Cash pooling and exemption from automatic balance offset:
The tax exemption may also apply to foreign payment service providers. Other transactions, however, are subject to the transaction tax.
The methodology describes the view of the Ministry of Finance of the Slovak Republic on the practical application of the financial transaction tax. The question remains as to how this interpretation will function during audits and disputes—and whether it might be more appropriate to amend some topics directly in the law.
For more information about the financial transaction tax in Slovakia, please visit the Deloitte website.
