It concerns the possibility for construction sector suppliers to exclude VAT from invoices for their customers, with the tax then being paid to the state by the company that ordered the work or goods, the TASR newswire reported.
The measure, one of 15 items on the list announced in May, was approved in late September in the parliament and Fico symbolically ticked it off the list of measures from the second package on the site of the partially built St Michael’s Hospital in Bratislava.
The government introduced the possibility for small and medium-sized companies with an annual turnover of €10,000 to pay VAT as late as when they see their invoices paid by their customers as part of the first social package, Fico said. Nevertheless, many construction companies then complained that the limit for the annual turnover was too low, and that is why the cabinet responded by introducing the latest measure.
“These measures should result in companies not experiencing such economic and financial problems as in the past; they should also reduce the administrative burden and they are important tools in the fight against tax evasion,” Fico said, as quoted by TASR.
The measure does not involve any turnover ceiling, said Finance Minister Peter Kažimír.
“When subcontractors of the construction works supply services or goods, they will not have to send invoices with VAT,” Kažimír explained, as quoted by TASR, adding that thanks to this, they will not face problems if their customers do not pay the invoice.
Both non-parliamentary liberal party SKOK and the parliamentary Christian Democratic Movement (KDH) welcomed the measure, both stating that the government was obviously inspired by their suggestions. SKOK’s Jozef Kollár said that he proposed a similar measure a year ago and at the same time suggested that the government engages in talks with the European Commission to be allowed to apply the measure to more sectors, mainly those that are prone to the aforementioned carousel tax frauds, as reported by TASR.
7. Oct 2015 at 5:48 | Compiled by Spectator staff