The officially registered Expedia status for income tax

BRATISLAVA. Slovakia has registered the first digital platform for revenue tax purposes. The Financial Administration allows to amend the Income Tax Act, which targets service providers via digital platforms since the New Year

According to the Slovak Chamber of Tax Advisers (SKDP), Expedia Lodging Partner Services Sørl of Switzerland, which covers several portals providing services related to travel. Trivago, Expedia or Hotels.com

Since the amendment of the Act, it has become the second company registered for income tax purposes on the basis of accepted changes in Slovakia

Another is the TPF group, sro of the Czech Republic, which, according to SKDP information, was however to be registered voluntarily after being contacted by the financial administration.

There are also other companies

There are no other internationally known portals, however, registration or voluntary registration is open to the public, which also offers its services to Slovakia, although they are not registered and pay no taxes

Tax advisers claim that the official registration process is also reported in companies like Booking.com BV from Holland, German HRS – Hotel Reservation Service Robert Ragge GmbH, Czech Previo, sro or by Szallas.hu

The financial report of the specific digital platforms that it deals with does not mention. It refers to tax secrecy. "We can confirm, however, that we have two registered digital platforms, one of which has been registered voluntarily, the other has been registered," said Ivana Skokan, spokesman for financial intelligence of SITA.

Platforms against which the registration process began. The registration process begins with a call for compliance with the registration fee in accordance with the Tax Code. This is preceded by a local survey of web hosts using digital platforms for the mediation of their services, when the financial management checks compliance with the legal requirements of registration

. "The length of the registration process depends on several factors.

Tax Advisors

However, the tax authorities consider that this process is a risk that may lead to litigation or arbitration in the event of double-dealing violations. imposition

"The legislation has brought a particular uncertainty for taxpayers, for operators of digital platforms as well as for companies offering their transport and hosting services through these platforms.SKDP disapproves of Slovak Republic's interpretation of the double taxation conventions, "said Miroslav Mar

In his view, the fuzzy legislation also poses problems for Slovak entrepreneurs who use the services of Internet mediators. If a foreign digital platform does not register a permanent establishment in Slovakia for the purpose of income tax, the obligation to deduct and withhold the withholding tax on the payments of the 39, intermediation will be automatically transferred to the Slovakian entrepreneur. but in practice, the financial flows are often set up so that these entrepreneurs do not have the real possibility to refuse the tax, in which case they will have to pay the tax and ask the operator of the digital platform ", added Marcinčin.] New bonds

New bonds apply to foreign digital platforms offering hosting or transport services in Slovakia since the beginning of the year

The Amendment to the Income Tax Act introduces an obligation for service providers via digital platforms to register a permanent establishment in the territory of Slovakia as long as it is not in force. they provide their services here in the form: mediation of transportation and accommodation

If a service provider of a foreign company does not register such a permanent establishment, the scheme says from restraint to the source will apply

This means that the fees paid by the contractor to a foreign company the use of its platform will result in a withholding tax of 19% or 35% depending on the seat of the real beneficiary