The Slovakian Ministry of Finance has announced that it is preparing legislation for the introduction of a CTC scheme in the country, following in the footsteps of countries such as Italy, Hungary and Spain.
The CTC scheme will require businesses to report invoice data to the tax authority prior to issuing the invoice to their trading parties, who will have the corresponding obligation to report the invoices received. The data will be sent either through a certified accounting software or through the government portal which is under development.
The objective of the Slovakian CTC scheme is for the tax authority to obtain information about the underlying transactions in real-time to efficiently combat tax fraud and evasion in the field of VAT, income tax and other taxes, and ultimately lowering Slovakia’s VAT gap (20%) to the EU average at 11%.
