Adjusting the possibility of deductions for value added tax (VAT) can bring the state at least 900 million euros. This was stated on Tuesday at a briefing by non-classified members of the National Council (NR) of the Slovak Republic around the Minister of Tourism and Sports of the Slovak Republic Rudolf Huliak. According to the deputies, the possibility of VAT deduction should be abolished for services connected with advertising, with IT and consulting. Huliak wants to discuss the draft law, which is being submitted by the deputies to the next meeting of the National Assembly of the Slovak Republic, at the coalition council on Wednesday (April 8).
- The adjustment of VAT deductions should bring at least 900 million euros to the state.
- Deputies propose to abolish VAT deductions for advertising IT services and consultancy.
- According to Huliak, Slovak families lose 600 euros per year through VAT fraud.
- The goal is the gradual complete abolition of VAT refunds after obtaining the European exemption.
- The revenues obtained are to replace the consolidation measures and enable the preservation of thirteenth pensions.
“Every Slovak family currently loses more than 600 euros a year as a result of VAT fraud. We are therefore proposing the abolition of VAT refunds in three fundamental areas, where we have the most defined risk areas, namely advertising-related services, information technology and consultancy“, Huliak approached.
„Our aim is generally to abolish the total VAT deduction, but this is one of the measures that will be initial and will show us and identify whether the subsequent abolition of VAT refunds as a whole will be effective. The European Union also has limited legislation in this regard, and we will have to request an exception based on that,” he explained.
According to Huliak, the cancellation of VAT returns would brought revenues to the state budget higher by 900 million euros. “It can be said that these are the smallest estimated VAT evasions that we have tracked for a long time within the state as such,” he specified.
According to him, the mentioned legislative proposal would help cancel the other consolidation measures that were not taken. “Ohthe intervention will prevent VAT fraudsters from parasitizing Slovak families in any way, make it possible to maintain 13. pensions for senior citizens, support families with measures and ensure that this is not at the expense of excessive indebtedness. And we dare to subsequently cancel the transaction tax and half the VAT deduction on vehicles for entrepreneurs,” added Huliak.
