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Slovakia has no plans to adopt reverse charge for VAT

The EU has recently allowed its member states to adopt a so-called reverse charge for VAT on all transactions above €17,500. This means that companies would not charge VAT at all, only the last supplier in a chain—most often a retailer—would charge VAT in the same way as now. Tax experts say this is a very efficient tool to combat tax evasion. The Czech Republic is already working on wholesale adoption of the reverse charge, but Slovakia is not considering it. Slovakia has already adopted it for select commodities, such as metal waste, wheat, and old real estate. Its wholesale adoption, reckons the Finance Ministry, would be a “significant challenge for the tax authority FS”. If neighboring countries opt for reverse charge and Slovakia does not, there is a real likelihood that tax fraudsters will move to Slovakia.

Táto správa je z Ekonomiky DNES, denného prehľadu najdôležitejších ekonomických správ zo Slovenska.

This news is from the Slovak Business News TODAY, one-page summary of all the important Slovak business news.

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