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Taxation of income using digital platforms
Booking, Airbnb, Uber, Wolt, Bolt etc.
The recent discussion about the taxation of the digital services has resulted into the introduction of an EU directive. From January 1, 2023, an amendment to the law will be adopted also in Slovakia, which will put the EU directive into practice. The Financial administration will begin to check in more detail the incomes from the rental and sale of goods/services via digital platforms. For the first time, the Financial administration will check the income achieved for the year 2023.
The amendment relates to digital platforms, such as Booking, Airbnb, Uber, Wolt or Bolt. Platforms for renting bicycles and other means of transport will also have an information obligation, together with platforms for the shared economy and virtual marketplaces with goods. The law does not apply to large hotel accommodation providers, government entities, entities with shares traded on a regulated stock exchange. Also the information on small sellers with less than 30 activities and sales up to EUR 2,000 for the monitored period does not have to be reported.
The digital platforms will be obliged by law to provide information about their clients. Until now, the information on this type of income could only be requested, with this amendment it will be provided automatically by the digital platforms. Lists of companies and individuals will be provided with their identification data and the income achieved through the digital platform. The obtained data will then be compared with the tax return of a specific company/individual. In case of a discrepancy, a tax audit will be initiated with the aim of recovering the tax. The directive creates the so-called cross-border tax audit which means that, if necessary, Financial administrations from other countries will cooperate on tax audits.
The aim of the directive is to reduce and prevent tax evasion. In case of non-fulfillment of tax obligations, such as the registration obligation or non-disclosure of income in the tax return, there is a risk of high fines.
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