platitelia dph na slovensku budu mat novu oznamovaciu povinnost

VAT payers in Slovakia will have a new reporting obligation

On 27 October 2021 the parliament approved amendment to the Tax Administration Act, which also amends the Value Added Tax Act. It should become effective as of 1 January 2022, although some obligations will already apply to VAT payers at the end of 2021. The major changes proposed concern registered bank accounts and split payment, details of which we briefly informed you in the most recent edition of Tax News. 

Registered bank accounts of VAT payers

• VAT payers registered as at 15 November 2021 will be obliged to register with the Financial Directorate each account, held in a domestic or foreign bank, which they use for business activities within the scope of Slovak VAT, no later than 30 November 2021.
• It will also be necessary to disclose to the tax authorities any changes to bank accounts. For example, details of a new bank account should be notified before it is used for business purposes.
• If VAT payers do not fulfill reporting obligations, a penalty of up to EUR 10,000 can be imposed.
• Bank account notifications should be submitted electronically via a special form, available on the web portal of the Financial Administration, which is pre-completed for registered VAT payers.
• VAT payers who use cash-pooling may register a bank account owned by another person. However, they will also need to identify the actual owner, who will then be jointly and severally liable for the VAT stated on the invoice.
• The list of registered VAT payers’ accounts will be published and updated on the website of the Financial Directorate.

How the new reporting obligation impacts VAT payers

• In connection with the registered bank accounts of taxpayers, joint and several liability for VAT unpaid at a previous stage is also being extended.
  
• If the VAT payer settles a payment to a supplier’s bank account not registered with the Financial Directorate, this will result in the legitimate assumption that they knew, or should have known, that the supplier would not settle the output VAT with the state treasury.
• Registered bank accounts will be used, inter alia, by the tax administrator to refund remittances such as tax overpayments and excess VAT deductions.

Split payment option

• With the aim of mitigating the risk of several and joint liability for unpaid VAT by the supplier, the draft amendment introduces a split payment option.
  
• This essentially means that a customer will be able to remit the amount of VAT shown on an invoice directly to the individual bank account of the supplier held by the tax authorities. The remainder of the invoice amount (tax base) will be paid directly to the supplier.
• By paying VAT directly to the individual bank account of the supplier, the risk of being held liable for unpaid VAT should be mitigated. The payment order should be made in the same way as if placed by suppliers themselves.

How can EY help you?

• We can assist you in registering your bank accounts with the Slovak Financial Directorate.
• We can check if previously registered bank accounts meet all the requirements.
• If you decide to use the split payment option, we can assist you in properly arranging business agreements from the tax and legal perspectives.

Should you have any questions on this topic, please do not hesitate to contact us.

Juraj Ontko