Spectator on facebook

Spectator on facebook

VAT collection efficiency is improving

Financial Administration sees measures taken to combat tax frauds and evasion as behind the improvement.

(Source: ČTK)

The efficiency of value-added tax collection in Slovakia is rising. The head of the Financial Administration, František Imrecze, presented the improved results on March 23, the SITA newswire reported. The effective tax rate of VAT grew to 15.2 percent at the end of last year. Efficiency of the collection of this tax was the highest since 2007 and since 2012 when the effective tax rate hit its low of below 12 percent.

Read also:Combating tax evasion

It meant additional revenues for state coffers amounting to €2.66 billion. Slovakia’s VAT rate is 20 percent.

This progress in collection efficiency reflects the improved work of the tax administration as data adjusted for macroeconomic development is at stake.

In Particular the new measures taken in the fight against tax evasion are behind the improvement. The Tax Cobra has disclosed cases in the amount of €710 million since 2012 while in the cases not closed yet an additional €85 million are at stake.

Read also:Slovakia is fourth worst in collection of VAT in EU

Also the introduction of a control tax statement meant a breakthrough when it squeezed the number of recorded risky transactions from 20 percent down to 12 percent. Behind the improved tax collection is also restrictions on cash payments and the ability to cancel VAT registration for risky businesses.

Starting this year, further measures have been implemented including the super-seizure order that allows blocking the cash flow of an entity suspected of tax fraud.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Topic: Finances and Advisory


Top stories

Rules for hiring foreigners are simpler. For exceptions

Despite positive changes, employers still point to some barriers preventing more effective and simpler recruitment of foreign workers.

Some problems with Foreigners’ Police continue.

For a Decent Slovakia protests to resume on Friday

After a summer break, organisers of the protests that have drawn masses to Slovakia’s streets stated that their – and the citizens’ – demands are far from being met.

For A Decent Slovakia march on June 22, 2018, in Bratislava.

News isn’t negative because journalists are cynical

The problem is caused by the demand side.

What is it like to study at a foreign college? Students explain to high-schoolers

Some Slovak students who study abroad already have work offers.

Students during the workshop