Supreme Court on VAT Returns: Costs and Revenues in Tax Assessments

• The Slovak Supreme Administrative Court ruled that even when tax is assessed using available information, the tax authority must determine liability as accurately as possible.
• In the case, the tax authority used VAT return data for revenues but ignored cost-related data without explanation.
• The Court held that authorities must consider both unfavorable and favorable circumstances for the taxpayer, even if not expressly declared.
• Because the decisions did not explain why the same VAT data was used for revenues but not costs, they were insufficiently reasoned and not reviewable by the court.
• The judgment reinforces that the truth-finding principle and fair consideration of all relevant available information still apply in such tax assessments.

Source: bmb.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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