Changes in VAT from January 1st 2015

Upon delivery telecommunication services, radio broadcasting and television broadcasting and electronic services will always apply "the principle of the establishment of the customer", ie the EU Member State where consumption occurs.

Member State of consumption shall be the Member State in which the supply of telecommunication services, broadcasting or electronic services is deemed to have taken place, it means the Member State in which the recipient of that service (customer - non-taxable person) is established or resident therein usually resides.

This change affects businesses established in the Slovak Republic, supplying electronic services according to § 16 paragraph. 18 of the VAT Act (eg. Web site, remote service software, images, music, movies, games -ich delivery, financial services at a distance, etc.). This will fundamentally change the tax payers in the EU place of supply of services. Registration in each Member State where the services are delivered, which is not only administrative but also time-consuming and costly.

Mini one stop shop model - a special VAT arrangements based on voluntary taxpayers, where the service provider identified for VAT in one Member State where the services will be taxed at all - it is a great deal in terms of administration and choice of the Member State where will fulfill their obligations.
Providers of those services, opting for the special scheme for the application of value added tax, should electronically submit only one VAT return and pay only one tax authority in the Member State of identification. Tax returns and paid VAT amounts should then be distributed to Member States which according to the actual place of delivery of specific service features.

Other changes:

  • Shortening the deadline for registration for value added tax from the current 30 days to 21 days.
  • A new mechanism for imposing penalties for unauthorized VAT refund within a shorter period, you may apply the so-called tax return. reliable VAT payers, ie. Taxable value meeting the conditions imposed by the Law on value added tax (§ 79 par. 2 in parallel with § 79 par. 7). The introduction of fixed penalty rate is the maximum limit for the amount of the fine.
  • The deadline for filing the statement of control - control statement to value added tax should be taxable under the proposed changes required to submit within 25 days after the end of the tax year, regardless of the fact that when the tax period the tax declaration.
  • Tax Refund tax authorities for excessive deduction before the end of the tax inspection within 10 days of dispatch partial Protocol. The amendment to Act no. 536/2009 Z.z. Tax Administration (Tax Code), as amended, which should introduce a partial Protocol Institute. It allows the tax authorities to return the controlled taxpayer portion of the excess before the completion of a tax audit. The proposal addresses the specification of § 79 of the VAT Act, which governs the VAT refund.
  • Change proposes to reduce the time limit from 12 to 6 months, during which assesses the infringement of obligations for the purpose of removal from the list of tax-risk subjects. Financial Directorate of the Slovak Republic erased from the list of tax-payer risk entities should fall away grounds on which this list was published simultaneously in a period of 12 consecutive calendar months, the taxpayer did not breach the obligation of fiscal supervision, breach of the obligation to file a tax return or a control statement no obligation to pay the due tax and is reachable at the address, place of business or at the establishment, or if he was deregistered for value added tax.