Slovak Tax Authority to Audit Social Enterprises Over Reduced VAT Claims

Slovakia's Financial Administration, the country's tax and customs authority, has announced it will conduct inspections of social enterprises to verify whether they are correctly applying reduced VAT rates. The checks are designed to ensure that only eligible businesses are benefiting from the lower tax rate, which is reserved for enterprises meeting specific social criteria under Slovak law. Social enterprises — businesses that prioritize social goals such as employing disadvantaged workers over profit — may qualify for preferential VAT treatment, but authorities want to confirm compliance with the rules governing such claims.