Since October 1, 2012 certain provisions of Act no. 246/2012 Coll. as amendment of Act no. 222/2004 Coll. on the value added tax (hereinafter only “VAT Act”) came into force.
In line with this amendment, Financial Directorate of the Slovak Republic has issued instruction to foreign persons which are registered in Slovakia as VAT payers according to §5 of the VAT Act (hereinafter only as “foreign person”).
In line with the instruction given, the foreign persons which are registered for VAT purposes according to §5 of the VAT Act and which are not supplying the goods or providing services with the place of delivery in Slovakia with duty to pay the tax can be considered to be as “unreasonably” registered VAT payers if the registration is only used by them for a claim of input VAT via tax returns.
In this context, the tax authorities will perform preliminary tax inspection to determine the cause of the VAT registration.
The tax office may cancel the registration of such foreign persons based on the findings of the preliminary tax inspection, if it is proved by tax office that there is no legal basis for the VAT registration of such foreign person.
Should you have any further questions, feel free to contact us.
Contact Peter Pašek, Head of Advisory Peter.Pasek@accace.com Tel.: +421 2 3255 3009
