When Does the Obligation to Register with the RPVS Arise? Legal Grounds, Financial Thresholds of €100,000 and €250,000, and Exceptions—An Overview from the Law Firm Hronček & Partners.
The Public Sector Partners Register (RPVS) is a transparency mechanism designed to identify individuals who receive public funds or acquire property and property rights from public sector entities. The obligation to register with the RPVS is governed by Act No. 315/2016 Coll. on the Public Sector Partners Register.
Not every person who enters into a business or legal relationship with a public sector entity automatically becomes a public sector partner. It is always necessary to assess the specific legal relationship, the nature of the consideration received, the value of the consideration, and the possible existence of a statutory exception.
Who is considered a public sector partner?
A public sector partner is a natural person or legal entity that meets any of the criteria established by law. In particular, a public sector partner is a person who:
1. Receives public funds or another form of public consideration
This primarily includes persons who receive funds from the state budget, from the budget of a state special-purpose fund, from the budget of a municipality or higher territorial unit, from the budget of a public-law institution, funds from European funds (with exceptions provided for by law), state aid, payments from a legal entity established by law, or payments from a public enterprise or health insurance company.
2. Acquires property or property rights from the public sector
The obligation to register may arise for a person who receives state property, municipal property, or property of a higher territorial unit, rights to property, or other property rights from public sector entities. This therefore applies not only to funds but also to other economically quantifiable benefits.
3. Enters into contracts in accordance with public procurement rules
A public sector partner may also be a person who enters into a contract in accordance with specific public procurement regulations, a framework agreement, or a concession contract.
4. Provides health care under a contract with a health insurance company
Healthcare providers who have entered into a contract with a health insurance company for the provision of healthcare may also fall under the RPVS regime.
5. Is subject to a registration requirement under a specific legal regulation
The status of a public sector partner may also apply to persons whose registration obligation arises from another law.
6. Has a claim against the public sector
A public sector partner may also be a person to whom a claim has been assigned or who, under another legal title, is entitled to the satisfaction of a claim against the state, a state fund, a public-law institution, a municipality, a higher territorial unit, or a legal entity established by law.
7. Supplies goods or services related to public procurement
The obligation to register may also arise for a person who, directly or through other persons, supplies goods or services to public sector entities, or acquires property or property rights from them – if, at the same time, they know or, given all the circumstances, must know that this transaction is related to a contract or other legal act on the basis of which the public sector partner receives public funds or acquires property.
Financial Thresholds for Registration in the RPVS
The obligation to register in the RPVS does not arise automatically in all cases. For certain categories of persons, the law sets value limits on the consideration received.
One-time consideration — a person is not considered a public-sector partner if the value of the consideration under the contract does not exceed 100,000 EUR.
Recurring or partial payments — a person is not considered a public-sector partner if the total value of payments under the contract does not exceed 250,000 EUR.
However, these thresholds do not apply in all cases governed by law. In certain situations, the obligation to register arises regardless of the value of the payment. An example is state aid, where the value of the performance cannot be determined—in such a case, the registration obligation arises regardless of the amount of aid provided.
How is the value of the performance determined?
When assessing the value of the performance, the following rules are taken into account in particular:
- the values of the performance are assessed excluding value-added tax,
- in the case of co-ownership, the value is apportioned according to the size of the co-ownership shares; if the shares cannot be determined, they are presumed to be equal,
- in the case of multiple contracts, the values of the consideration under the individual contracts are not added together,
- in the case of a transfer of assets, the financial consideration to be provided by the public-sector partner is taken into account,
- If the value was determined by an expert appraisal, the expert appraisal is used as the basis;
- For recurring performance, the entire duration of the contract is considered, including any possible extension;
- For fixed-term contracts with the option of unilateral extension, the contract is treated as if it were extended;
- for contracts with the option to increase the value, such an increase is also taken into account if its value is determinable at the time the contract is concluded,
- for framework contracts, the maximum scope of performance is assessed,
- the calculation is based on the highest possible value of performance under the contract,
- contractual penalties are not included in the value of performance.
In the case of a contract for an indefinite term or a contract where it is impossible, even with the exercise of professional diligence, to determine whether the statutory limit will be exceeded, the obligation to register arises even before the acceptance of performance that would result in the limit being exceeded.
Who Is Not Considered a Public-Sector Partner?
The law also provides for several exceptions. In particular, the following are not considered public-sector partners, provided the statutory conditions are met:
- public administration entities,
- public enterprises in the course of their primary economic activity, provided such activity is not carried out for the purpose of generating profit or acquiring assets in excess of the statutory limit,
- persons primarily operating in the nonprofit sector (with the exception of business activities that meet the statutory conditions),
- banks, insurance companies, securities dealers, and other regulated financial institutions,
- entities receiving payments from Slovak diplomatic missions abroad for the supply of goods or services or as part of development and humanitarian aid,
- other states and their authorities,
- international organizations,
- persons receiving payments from a public enterprise in the course of ordinary business transactions,
- holders of financial instruments in cases specified by law,
- persons trading in financial instruments on regulated markets in the EU or the EEA,
- selected persons entering into financial transactions with the National Bank of Slovakia, the Debt and Liquidity Management Agency, the State Treasury, the Slovak Guarantee and Development Bank, or the Export-Import Bank of the Slovak Republic,
- certain healthcare providers based outside the Slovak Republic,
- owners of apartments and non-residential premises in the context of building management and entities acting on their behalf,
- landowners’ associations,
- persons receiving payments under regulations on the redress of certain property injustices (excluding assigned claims).
Conclusion
The obligation to register in the RPVS arises when a specific natural or legal person meets one of the statutory grounds on the basis of which they are considered a public-sector partner, and at the same time is not subject to a statutory exemption.
When assessing this, it is therefore always necessary to evaluate on a case-by-case basis the nature of the consideration received, the entity providing the consideration, the legal basis for receiving the consideration, the value of the consideration, and the existence of a statutory exception. Given the complexity of the legal framework, it is not possible to assess the registration obligation solely based on the amount of funds received. The decisive factor is the overall legal and economic framework of the specific relationship.
Not sure if the obligation to register with the RPVS applies to you? Contact us—we’ll assess your specific case free of charge.
