Slovak Republic

General Information

Direct selling in Slovak Republic means purchase of contractual goods with subsequent sale of the same goods on the basis of remotely concluded contracts or contract concluded outside working premises of the seller.

This type of sale includes also telephone sales, direct mailing, catalogues, electronic mail sales, distance sale, doorstep sale, sale actions, etc.

Generally, the entrepreneur is defined in the Commercial Code (see “General Legal Framework”. The status of entrepreneur is also defined in Act No. 455/1991 Coll. on Trade License Enterprising, as amended. Obligations of direct sellers are regulated by consumer protection laws, e.g. e.g. Act No. 250/2007 Coll. on consumer protection, as amended, Act No. 102/2014 Coll. on consumer protection at sale of goods or provision of services on basis of remotely concluded contract or contract concluded outside working premises of seller, as amended

Cooling-off Period
14 days as cooling-off period for any retail transactions concluded outside permanent POS.

Pyramid Schemes
Pyramid schemes prohibited as under EU law (UCPD).

Multi-Level Marketing
No legislation.

Prohibition on Products
No legislation.

Credit Restrictions Country
There is no specific regulation of credit.

Money Collections
No specific regulation.

Licenses
Every entrepreneur has to have a ‘business’ license. For direct sellers, a license permitting ‘purchase of products for further sale’ or ‘mediation in the field of product sale’ are applicable.

The mostly used form of independent economic activity of an individual person is an activity carried out on the basis of a trade license.

Key criteria for a holder of trade license (entrepreneur as  individual / natural person) are the following:
– systematic activities,
– carried out independently,
– under the entrepreneur’s own name and his responsibility,
– for the purpose of gaining profits.

Status of Direct Sellers

There is no separate Statute for Direct Sellers in Slovakia.

Earnings Claims
No legislation.

Taxes and Fees

In Slovakia, equal tax is applied, as follows:

(a) for natural (individual) persons in the percentage of: (i) 19% from the part of income tax basis not exceeding 176.8-multiple of substinence (living) minimum, (ii) 25 % from the part of income tax basis exceeding 176.8-multiple of substinence (living) minimum.

(b) for legal entities in the percentage of: (i) 15 % for entities whose income for period of taxation exceeded EUR 100,000, (ii) 21% for entities not covered by (i).

Registration fee is EUR 5.00 per each free trade activity.

 

Social Security
Each entrepreneur must be registered in social security system carried out by the Social Security Insurance Company (state authority), and must pay contributions to the named system. The amount of contribution is based on entrepreneur’s income and is calculated as a percentage from income tax basis (income (commissions) minus provable expenses). Contributions are paid monthly an in advance, by the entrepreneur (direct seller) himself, in the following percentages:

Mandatory pension (retirement) insurance: 18%
Disability insurance: 6 %
Sickness insurance: 4.4 %
Voluntary unemployment insurance: 2 %

Each entrepreneur must be registered in public health insurance system carried out by the (state) General Health Insurance Company or one of private health insurance companies. Contributions are paid under the same regime as stated above (with respect to social security system) in the amount (percentage) of 14 %.

Others
Main laws:

• Act No. 513/1991 Coll. the “Commercial Code, as amended
• Consumer protection laws: e.g. Act No. 250/2007 Coll. on consumer protection, as amended, Act No. 102/2014 Coll. on consumer protection at sale of goods or provision of services on basis of remotely concluded contract or contract concluded outside working premises of seller, as amended

The WFDSA International Guide to Direct Selling Legislation is a guide and is not exhaustive either in terms of subjects presented or for all areas of concern to direct selling companies. It is intended to cover general areas of concern. The Guide is not a substitute for legal counsel but only intended to alert you to the general nature of laws and regulations affecting the direct selling industry in a particular country. Consequently, before beginning an operation in any foreign country, it is strongly recommended that competent legal counsel be consulted. While every effort has been made to insure that the information contained in this Guide is accurate, the variety of sources used makes absolute verification difficult. Further, laws and regulations also can change from time to time without notice. Therefore, the WFDSA cannot be held liable for the information included in this publication.