10 Things to know about the transaction tax

As April 1 approaches, the date when the new transaction tax will take effect, uncertainties surrounding this measure are piling up. The law on the transaction tax, which parliament adopted last November, has already undergone two amendments, but not all issues have been fully resolved. 

The biggest uncertainties surround the issue of reallocated costs and what qualifies as a taxpayer’s activity conducted in Slovakia. 

The Finance Ministry is preparing a guidance note to provide more detailed information on the new obligations, but it is not known when it will publish it. 

The Slovak Spectator has compiled a list of the 10 most important things to know about the new tax. 

1. What is the rate of the transaction tax, and when will it take effect? 

The tax rate is 0.4 percent per online transaction, with a maximum cap of €40. This maximum amount is reached with a transaction of €10,000. If the invoice amount is, for example, €11,000, the tax would still be €40. 

Cash withdrawals are also subject to taxation, whether from an ATM or a bank branch. In this case, the tax rate is 0.8 percent with no upper limit. This means that when withdrawing €10,000 from a bank account, the business entity would pay a tax of €80. 

Additionally, payment cards are also subject to a fixed annual fee of €2, regardless of the number or volume of transactions made. 

2. How much does the state plan to collect through the transaction tax? 

Based on the draft legislation from autumn last year, the Finance Ministry aims to generate €517 million for the state budget this year. Since the tax will only take effect in April, this amount covers a period of just nine months. In 2026, the projected revenue is expected to reach €726 million. 

3. How many entities will be subject to this tax? 

Approximately 700,000 entities, conducting millions of transactions each month, will be affected by the tax. 

“Banks must identify all exemptions within this volume, whether related to specific entities or transfers,” said Štefan Barna, head of the Small Business Department at VÚB Bank, as cited by Hospodárske Noviny. 

4. Is there any estimate of the financial impact of the transaction tax on the self-employed and other business entities? 

Miriam Bellušová, General Secretary of the Slovak Trade Association (SŽZ), considers the state’s revenue estimates from the transaction tax for the self-employed to be exaggerated. The state anticipates the collection of €68 million from the self-employed in Slovakia this year. However, Bellušová estimates this sum at only about €20 million, or roughly 30 percent of the state’s projection. 

Murgašová added that self-employed individuals who conduct a high number of transactions and cannot consolidate them into a single payment are at a disadvantage. 

“Likewise, those who need to withdraw cash from their bank account are also negatively affected, as they are subject to double the tax rate with no maximum limit on withdrawals,” said Murgašová. 

Murgašová added that medium and large businesses report estimated the impacts of this tax reaching hundreds of thousands of euros annually. 

5. Who is exempt from paying the transaction tax? 

Entities that should be exempt from the transaction tax include NGOs if their activities fall into one of the defined categories, such as education, human rights protection, healthcare, sports development, social assistance, or cultural preservation. Additionally, more than 10 types of payment transactions will be exempt, including payments by health insurance companies for healthcare, central bank operations related to monetary policy, and payments made by bailiffs. 

6. Who will be responsible for collecting the transaction tax? 

The state has placed this responsibility on banks. If a business owner holds an account with any bank, the financial institution must calculate and remit the tax on their behalf. 

Banks can collect the tax in one of three ways: immediately after a transaction is processed, at the end of the day for all transactions, or at the end of the month for all accumulated transactions. 

Banks had to prepare for these obligations by implementing new IT systems and allocating additional personnel resources. 

7. Will there be any fines for failing to open a transaction account? 

Yes, but the law is not clear in this part. If a business entity fails to open a transaction account by the deadline of March 31, it may face a fine of up to €3,000, as stipulated by tax regulations. However, the law allows self-employed individuals to use their existing accounts and calculate the tax themselves. 

8. What obligations arise regarding the transaction tax for the self-employed? 

Self-employed individuals must have a payment account for business-related transactions by March 31, but the law does not specify the type of account required. It is also unclear what documents are necessary to open a transaction account. 

“Currently, some banks require an original extract from the Trade Register when opening a business account,” said Murgašová, adding that many sole proprietors struggle to obtain this document due to high demand at government offices. 

The Interior Ministry advises self-employed individuals to obtain the original extract in digital form via the website www.slovensko.sk. Also, banks themselves can require the extract from the Trade Register. 

9. Do any obligations regarding the transaction tax arise for employees? 

The transaction tax does not apply directly to employees, meaning they will not be individually taxed. However, they may feel indirect effects, such as lower wages, reduced benefits, and higher living costs. 

Moreover, the tax applies to salaries transferred to employees’ bank accounts, increasing the financial burden on employers. 

10. Are there still any open questions regarding the transaction tax? 

Several uncertainties remain, particularly regarding reallocated costs and what qualifies as a taxpayer’s activity conducted in Slovakia, according to Murgašová. 

“To resolve these uncertainties, it would be beneficial to add legal definitions directly into the law,” she said.