December 9, 2021

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Amendment to VAT Law: Entrepreneurs will have to report their government account numbers

Amendment to VAT Law: Entrepreneurs will have to report their government account numbers

An amendment to the VAT law, approved by the government on October 27, 2021, will affect both existing and new VAT payers in Slovakia. They will be obligated to notify the Financial Administration of the Slovak Republic of all their commercial bank accounts by November 30, 2021. Thus, entrepreneurs have only a minimum time to change.

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The goal is to prevent tax fraud

Government bill put, among other things The value-added tax law has also been amended, the government agreed on October 27. “Law It will take effect on November 15. It is still awaiting the signature of the President of the Slovak Republic and its publication in the Compilation of Laws of the Slovak Republic,” said Katharina Balugova, Tax Director of Accace Slovakia.

Since it was not clear a few days ago when and in what form the law would be approved, all VAT payers in Slovakia have little time to implement the changes. Obligation to report to the Finance Directorate of the Slovak Republic (FR SR) Must be completed by November 30, 2021. The objective of this amendment is to publish the list of bank accounts for VAT payers on the website of the Saudi RiyalTo prevent excessive tax deductions from being paid to foreign bank accounts.

The obligation must be fulfilled by all VAT payers

The notification obligation must arise in accordance with the law Every taxable person is registered in Slovakia as a VAT payer Regardless of whether they are natural or legal persons engaged in business. So it will apply Also for self-employed persons who are registered as VAT payers in Slovakia. The obligation applies to All payers registered as of November 15, 2021, as well as newly registered fee payers after this date”, identifies K. Balogová.

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The law amendment also sets deadlines for when it will be necessary to notify commercial bank accounts. Taxable persons who are taxpayers as of November 15, 2021You only have about 15 days from this law going into effect to notify all the accounts they use for business, which means The deadline for compliance is set at November 30, 2021.

Newly registered payers, i.e. those who become payers after November 15thThey must comply with this obligation immediately from the date on which they become taxable persons. Or alternatively, immediately from the date they created this account After they have been registered by the tax office as taxpayers.

The notification obligation should be affected Not only Slovak entrepreneurs, but foreigners as well, If they are registered in Slovakia as VAT payers according to the Slovak VAT law.

You will be notified electronically

Bank accounts must be notified to the financial department Electronically on a form form, which will be selected and posted on the FR SR website.

The form must be filled out in advance for payers, while the payer must specify the bank account numbers he uses for businesses that are taxable under the Slovak VAT law. If he also uses other bank accounts, he has to add them to the form. Domestic and foreign accounts are reported.

If the payer does not report all bank accounts, which he has created and will later want to use for business, he will have to notify them before using it for the first time in business. He will also have to notify the new bank account immediately, which he will later establish and will want to use in business,” describes K. Balogová.

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They face fines of up to 10,000 euros

Entrepreneurs should pay attention to the accuracy, validity and completeness of their bank account statements when reporting. Otherwise, the tax office will be able to impose a fine of up to €10,000 for non-compliance with the notification obligation..

Customers can become tax guarantors

After the law amendment is approved, customers must also be notified when bills are paid from their suppliers. In case, They will pay supplier invoices to bank accounts that will not be included in the FR SR . listThe Tax Responsibility Institute can be applied by law. This means that if the supplier does not pay VAT, The obligation to pay tax may be transferred to the customer.

“Based on the declared bank accounts, FR should be SAR as of January 1, 2022 Publish a list of VAT payers’ bank accounts used for business. The customer is obligated to guarantee the supplier unpaid tax even if he paid the corresponding supplier or part of it for performance to a bank account other than the supplier’s bank account which is posted on the website in Saudi riyals on the day of payment,” answers K. Balogová.

In order to eliminate the risk of tax liability for customers, After the amendment to the law is adopted, they must check during payments whether the supplier has notified the FR account number FR. In addition, the customer will be able to use a special method of paying taxes under the proposed actions – Payment split the essence of it They must pay the tax base on the invoice to the bank account indicated on the invoice a They pay VAT on the taxpayer’s personal account Led by the supplier’s tax officer.

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