Slovakia Successfully Reduces VAT Tax Gap in 2021

• Slovakia has reduced the tax gap on value added tax (VAT) in 2021
• The VAT tax gap decreased by 3.4 percentage points year-on-year
• Streamlining of analytical and control activities of the financial administration contributed to the decrease
• The Covid 19 pandemic also played a role in reducing tax evasion risk
• The state budget received 270 million euros more due to the decrease in the tax gap
• The positive development was attributed to improved internal financial management processes and focus on tax obligation evasion
• The pandemic led to restrictions in certain sectors, reducing the tax gap in those areas
• Increase in cashless payments and online shopping also reduced the risk of tax evasion.

Source: financnasprava.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.

---

---