An incorrect VAT rate means the supplier applied a different rate than the law requires. Slovakia and the Czech Republic both fix such errors through a corrective document, but their rate systems and correction windows differ: Slovakia uses 23 %, 19 % and 5 %, while the Czech Republic uses 21 % and 12 %. Until the correction is made and reported, the financial risk usually falls on both parties.
What does an incorrect VAT rate mean?
Since 1 January 2025 Slovakia has applied three VAT rates under Act No. 222/2004: a standard 23 % and two reduced rates, 19 % and 5 %. From 1 January 2026 selected sweet and salty foods moved from 19 % back to 23 %. The Czech Republic, by contrast, works with a standard 21 % and a single reduced 12 % rate under Act No. 235/2004, unchanged for 2026.
In both countries the error runs in two directions: the supplier either charges a higher rate than required, or a lower one. The consequences and the fix differ by direction, so the first step is always to identify which way the mistake went.
What happens when the supplier charges too high a rate?
Both jurisdictions share the same principle: whoever states VAT on an invoice must pay it to the state. In Slovakia this follows from Section 69(5) of the VAT Act, in the Czech Republic from Section 108. The supplier therefore remits the inflated amount even though it was charged in error.
The customer is worse off. The right to deduct input VAT applies only to tax in the correct amount. If the invoice shows 23 % (SK) or 21 % (CZ) where a reduced rate applies, the customer may deduct only the amount matching the correct rate; the surplus is lost until the supplier issues a corrective document.
What are the risks of charging too low a rate?
The opposite error is riskier for the supplier. Remitting a reduced rate where the standard rate applies means underpaying the state. The difference becomes a tax arrears that must be paid together with late-payment interest accruing for each day of delay, in both Slovakia and the Czech Republic.
The tax liability follows the law, not the invoice. Even with a lower rate written on the document, the supplier owes the correct, higher amount — which is why periodic rate reviews matter more than trusting last year’s software settings.
How is the correction made?
Both countries correct the error with a corrective tax document referencing the original invoice, but the mechanics differ. Slovakia (Section 25 of the VAT Act) requires the supplier to issue the corrective document within 15 days of the end of the month in which the deciding fact arose. In the Czech Republic a wrong rate is treated as a correction of the tax amount under Section 43 and is made through a supplementary VAT return; the separate seven-year window introduced in 2025 applies to base corrections for commercial reasons under Section 42, not to rate errors.
If the error was a too-high rate, the supplier reduces the tax paid and the customer adjusts the deduction. If it was a too-low rate, the supplier must pay the shortfall.
How does the fix appear in returns and control reports?
In both systems the correction must reach the VAT return and the control statement (the Slovak kontrolný výkaz or the Czech kontrolní hlášení) for the relevant period. If the error reduced the tax paid, a supplementary return is usually required; the sooner it is filed, the lower the interest.
Mismatches between the supplier’s and the customer’s documents are a frequent trigger for a tax authority query in both countries, so consistency across all reports is essential.
How can you avoid the wrong rate?
The best defence in both jurisdictions is an up-to-date rate table and a review after every amendment — especially around 1 January, when rates typically change. Configure the invoicing system to tie the rate to the specific item rather than to habit.
For borderline cases such as food, accommodation or printed matter, verify the classification in the annex to the relevant Act or in the tax authority’s guidance. If you would rather delegate the check, our Slovak tax advisory can confirm the correct rate before you invoice. A consultation before issuing the invoice is cheaper than a later correction, a supplementary return and interest.
Uncertainty about the correct VAT rate can cost you time and money in penalties. We are happy to review how your goods and services are classified and set up invoicing so errors do not arise.
FAQ
Who is responsible for an incorrect VAT rate on an invoice?
The supplier who issued the invoice is responsible for its accuracy, including the rate. If VAT is stated incorrectly, the supplier must still remit the stated amount — under Section 69(5) in Slovakia and Section 108 in the Czech Republic. The customer, however, may deduct only the legally correct amount, so both sides are affected.
Can I deduct VAT if the supplier used too high a rate?
Not in full. The right to deduct applies only to the tax that should correctly have been charged. If you receive an invoice with the standard rate where a reduced rate applies, you may deduct only the amount matching the correct rate. The rest cannot be claimed until the supplier issues a corrective document.
How long is there to correct the rate?
The rules differ. Slovakia requires the corrective document within 15 days of the end of the month in which the deciding fact arose. In the Czech Republic a wrong rate is corrected as a correction of the tax amount under Section 43, through a supplementary VAT return; the seven-year window introduced in 2025 applies to base corrections for commercial reasons, not to rate errors. If the error reduced the tax paid, a supplementary return is needed.