Huliak: State Could Save €1 Bn by Cancelling VAT Refunds

Bratislava, 4 September (TASR) – The state could save one billion euros in the upcoming fiscal consolidation by cancelling so-called VAT refunds, Minister of Tourism and Sport Rudolf Huliak (independent) said at a press briefing on Wednesday. Huliak plans to present the proposal at the next session of the coalition council. „We are in close touch with the business sector in Slovakia. The state must realise that while it's nice to distribute social packages, it first needs to earn the money to fund them. A 100-percent tax collection rate — while I know it's an illusion — can be achieved in the case of VAT. We are eliminating any possibility for VAT refunds. This is an example of a consolidation measure worth a billion euros that will not affect Slovak citizens," Huliak emphasised. According to the proposal, the measure is systemic and long-term, aimed at addressing the VAT gap. The state would eliminate excessive deductions claimed by VAT fraudsters. The measure is estimated to bring one billion euros into the state budget and would only impact companies, not citizens. The core of the proposal is the introduction of a general reverse charge mechanism between VAT payers. The measure is intended to be part of the next fiscal consolidation package. mf/mcs