Amendment to VAT Act Aims to Reduce Tax Fraud in IT, Advertising, and Consulting Services

• The amendment to the VAT Act aims to reduce tax fraud in selected high-risk service sectors by expanding the reverse charge mechanism.
• The targeted sectors are IT services, advertising (including market research and public opinion polling), and consulting services.
• These sectors are vulnerable to fraud due to their intangible nature, low transaction barriers, high value, and complex subcontracting chains.
• The measure is designed as a narrowly focused, proportionate sectoral solution compatible with EU law.
• The proposal has passed to the second reading in the Slovak National Council and will take effect upon approval.

Source: danovecentrum.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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