Slovakia has found the solution to increase the VAT collection


22 April 2014

Slovakia has found the solution to increase the VAT collection: a lottery tax receipts and prize of 10,000 euros per month. Other countries want to follow suit.

After a campaign of “shame” against those who do not pay taxes, wages increased tax inspectors and tax administrations stop political appointments, Slovakia has started a lottery taxes which relies on increased revenue from value added tax (VAT) and evasion of public support. Slovak authorities said the lottery tax is a real success and has already contributed to increased tax collection and the number of complaints on neemiterea tax bills. Such a lottery would be a solution for other states with acute problems of tax collection rate, Portugal recently adopting the model.
Last fall the Slovak government, whose tax revenues have declined in the past decade, decided to create a lottery taxes to encourage consumers to retain receipts when shopping and to record them in a set of government and designed to monitor transactions and to force restaurants and shop owners to pay the VAT rate that due to The New York Times.
Program created by the government indicates those who register receipts if the issuer used a false identification number, and consumers can report any fraud. In return for the aid given to the IRS, the Slovaks can win the lottery taxes 10,000 per month, a car or a chance to participate in the “right price”.
The Slovak authorities say that the system has already applied remarkable results, which led to several European countries facing problems in collecting VAT to consider its application. Portugal has implemented the program last week. Portuguese authorities say charges will be successful lottery because gambling is popular among the 10 million inhabitants of the country.
Countries with acute problems in collecting VAT include Greece, Ireland, Latvia and Spain, countries affected by the crisis. Around 450,000 Slovaks played the lottery before tax and registered about 60 million tax bills, according to officials in Bratislava.
Number of complaints on traders not issue tax receipts increased considerably. Six months before the start of the program, authorities received 300 such complaints, and the number increased to 7,000 in the first months of operation of the lottery.
“So far the program has been a success,” said Slovak Finance Minister Peter Kazimir.
Ten years ago, Slovakia collect about 80% of the fees payable and the collection rate dropped to 60%, said Peter Golias, director of research Ineko quoted by The New York Times.
Lottery is not the only attempt Slovak authorities to increase tax revenues collected. In recent years, the government in Bratislava initiated a campaign of “shame” against those who do not pay taxes, wages increased tax inspectors and tax offices closed political appointments.
Amounts collected from VAT began to rise at the beginning of last year and the trend was accentuated after the start of the lottery tax. The Slovak authorities say last year they collected 512 million dollars (370 million euros) more than in 2012.
Finance Minister said that the lottery tax that was placed on the feet with just $ 276,000 (200,000 euros), was an important factor in increasing tax collection. He pointed out that the number of complaints registered on neemiterea tax receipts showed that not only do fraud boutiques but chain stores.