BRATISLAVA, May 30, (WEBNOVINY) – Slovakia could increase revenues from value-added tax (VAT) by some EUR 1 billion through a more efficient collection. In order to streamline the VAT collection the Ministries of Finance and Justice have been cooperating on a draft revision on VAT, containing primal measures to eliminate VAT fraud.
The amendment, ready for submission to the Cabinet session, is proposed to come into force as of October 1, 2012. However, the exact financial impact of these measures cannot be quantified over individual years, according to the Finance Ministry, because “their positive impact on the state budget fully depends on the approach and capability of the tax administration to apply them.”
The revision shall introduce tougher terms for VAT payer registration for risky entities, extend the mandate of the tax office to cancel VAT registration in justified cases and modify guarantees for payments of output VAT to eliminate taxable transactions whose only objective is law abuse and illegible payout of tax refund. The amendment would also introduce a duty to register purchase of used motor vehicles from other EU member countries and electronically submit the files to a tax office. „The reason is that during subsequent sale of these vehicles in Slovakia tax frauds and evasions occur,“ explained the ministry.
SITA
