Foodstuffs sold directly by producers subject to lower VAT in Slovakia

2010-03-09

On 3 March 2010 Slovak parliament approved new legal provisions introducing a lower rate of VAT for products sold by sole traders and cooperatives. The rate has been reduced from 19% to 6% and the lower rate applies to foodstuffs such as natural honey, eggs, various types of meat, raw milk and fish. As a result, the prices of these products are expected to drop this year.
The provisions have been criticised by opposition parties, who argue that they breach EU regulations on trade conditions and pricing. The law was found by some Slovak members of parliament to be unfair and in contravention of equal trade conditions. The legal provisions are to take effect from May 2010.