Act On Small And Medium-Sized Enterprises, VAT Act

According to the former Act, small and medium-sized enterprises are provided with financial support from the state budget which is determined for this purpose on the basis of approved support programs. Small enterprises are physical persons with residency doing business in the Slovak Republic, which employ up to 24 employees. Medium enterprises are persons or legal entities employing up to 24 employees. Medium enterprises are persons or legal entities employing up to 500 employees under the same conditions. The support is rendered in the form of credits/loans, guarantees, payment of interest, contributions under special regulations, donations and other financial support must be sent to the appropriate Ministry or other institution established for this purpose.

The definition of input tax has been changed so that the taxpayer is entitled to a tax deduction in the tax period only when the input tax is paid (not when it is recorded), if all the necessary tax documentation is available. Effective date of payment of VAT is:

Effective date for payments from a bank account is the day when the transfer from the tax payers account was made.

In case of the cash payments by postal order it is the date when the bank or post office received the cash.

For other payments it is the date when the taxpayer who provided the taxable supply received the cash. Valid documents of tax payment are original of the cash disbursement document and copy of the receipt document of the taxpayer who receives the payment.

If a payment is made in parts, the date of payment is the date when the last part was paid.

Payment of the tax is considered to be the payment in cash.

The content of this article is intended to provide general information on the subject matter. It is therefore not a substitute for specialist advice.

For further information contact Ruth Clamp or Antonn Masaryk, Arthur Andersen Czech Republic, tel. +42 7 5340 545, or enter text search 'Arthur Andersen' and 'Business Monitor'.