Slovak Tax Authorities Uncover €42 Million in Tax Violations During March Inspections

Slovakia's Financial Administration discovered tax violations worth over €42 million during inspections conducted in March, the agency announced. The controls revealed various forms of tax evasion and fraudulent activities across multiple businesses and sectors. The most serious case involved a carousel fraud scheme, where companies falsely claimed to export goods to other European Union countries without declaring value-added tax (VAT). This type of fraud exploits EU trade rules by creating fictitious export transactions to avoid paying domestic VAT while claiming refunds on input taxes. The Financial Administration, Slovakia's tax collection agency, conducts regular inspections to ensure compliance with tax laws and combat tax evasion. Carousel fraud schemes have become a significant concern for tax authorities across the EU, as they can result in substantial losses to state revenues while creating unfair competitive advantages for participating businesses.