Foreign digital platforms, which mediate services in transport and accommodation in Slovakia, are obliged to launch so-called permanent establishments in Slovakia. The Finance Ministry wants to force them to pay corporate tax. So far only one digital platform, the TPF Group from the Czech Republic, has done so voluntarily. The Financial Administration has registered one digital platform ex officio, while the registration processes of permanent establishments of others have not been completed yet.
Based on data from the Financial Administration, Expedia Lodging Partner Services Sàrl from Switzerland was registered ex officio, the Slovak Chamber of Tax Advisors stated.Slovakia is pioneering the taxation of digital platforms Read more
The Financial Administration has confirmed that the ex officio registration process is in progress in the cases of the following digital platforms: Booking.com from the Netherlands, HRS – Hotel Reservation Service Robert Ragge from Germany, Previo from Prague and Szallas.hu.Challenges of taxing digital platforms Read more
The Slovak Chamber of Tax Advisors warns that the related legislation has brought uncertainty for tax subjects as it does not agree with Slovakia’s interpretation of international agreements preventing double taxation. In its opinion these have priority over laws.
“A consequence there may be lawsuits, as well as arbitrations with other states, the taxing of incomes in Slovakia reducing their tax revenues since the same income should be not taxed twice in different countries,” said Miroslav Marcinčin from The Slovak Chamber of Tax Advisors.