Stricter VAT Registration: Security Deposit Requirement Returns for High-Risk Entities in Slovakia

• The government plans to reintroduce the obligation to provide a financial security deposit for VAT registration for high-risk entities.
• The Ministry of Finance aims to combat tax evasion and improve VAT collection by targeting entities with a negative tax history, such as tax arrears or serious violations.
• Identified high-risk entities must deposit a refundable financial security (from €5,000 to €500,000) for 12 months when registering for VAT.
• The security must be paid within 20 days of notification, either by bank transfer or bank guarantee.
• The tax authority will consider the applicant’s and related companies’ tax history when determining risk status.

Source: podnikajte.sk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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