The digital transformation of the Tax Administration has proven to be very successful, but also demanding for taxpayers. It would be good to speed up the resolving of existing misgivings with regard to the use of the system for electronic invoicing
In the area of taxes, the previous year has been marked by the introduction of new electronic systems for the Tax Administration’s data collection and processing, which were implemented successfully and had a significant impact on businesses in the aspect of their need to adapt their own information systems and business processes.
The new fiscalisation model achieved the comprehensive collection of data on transactions in businesses’ trade in goods and services with retail consumers – private individuals, while the introduction of the electronic invoice system has enabled the very detailed collecting of data on business transactions between businesses that are included in the VAT system. These electronic systems enable the Tax Administration to have precise and fully updated insight into the business operations of registered companies, on the one hand, as well as, on the other, the basis to conduct complex risk assessment analyses, data processing and control procedures. They represent a segment of the advancement of information systems and the digitalisation of the work of the Tax Administration, under the scope of the ongoing multi-year programme to transform, modernise and digitalise the Tax Administration.
There is, unfortunately, a lack of dialogue on the implementation of White Book recommendations regarding tax regulations
From a taxpayers’ perspective, these new introductions demanded detailed and complex preparations and the adaptation of both accounting and business information systems, but also changes to business processes in the aspect of the recording of business transactions and document creation, flow and storage within the company. This required certain costs to implement new solutions, as well as to train staff to use these solutions. On the other hand, this change is expected to bring long-term benefits in the form of reduced paper documentation and the costs of storing and processing such documents, faster and more reliable exchanges of information and increased efficiency. During the preparation, implementation and initial usage period of the electronic invoice system, taxpayers encountered a number of dilemmas, practical problems and difficulties, some of which still await a response and solution on the part of the Tax Administration and the Ministry of Finance. The FIC Taxation Committee has addressed the relevant state authorities with regard to these topics and offered constructive proposals for resolving them.
Unfortunately, there have been no significant amendments or positive strides in tax regulations when it comes to the problems that the FIC has been highlighting for years. We still don’t see significant readiness for dialogue on the part of the state authorities. The working group for the implementation of FIC White Book recommendations hasn’t been active in the area of taxes this year either. Regardless of this fact, the Foreign Investors Council will continue advocating for the resumption of dialogue and the advancing of tax regulations and practices, in parallel with increased transparency and the timely public disclosure and discussion of planned tax regulation amendments. We will continue fighting for the quickest and fairest possible resolution to the most important problems from the previous period, such as amendments to the property tax and the taxation of capital gains.