Value Added Tax Administration
This material provides information on the course and results of parallel audit performed by the Supreme Audit Office, Czech Republic and the Supreme Audit Office of the Slovak Republic which was concerned with the area of administration of value added tax and use of the VIES (Value Added Tax Information Exchange System).
In May 2004, the Czech Republic and the Slovak Republic acceded to the European Union and, consequently, income from the value added tax affects not only the State budgets of the two countries, but also the budget of the European Union as a whole. The parallel audit was concerned particularly with the procedure of tax administrators in relation to a review of the value added tax paid within commercial transactions between the individual member countries of the European Union.
Introduction of the VIES system enabled electronic exchange of information on registration of VAT payers in the individual member countries of the European Union and on commercial transactions performed by the VAT payers. Variance between information in the VIES and information stated in a value added tax return submitted by a taxpayer should alert the tax administrator to any suspicious cases and facilitate detection of tax evasions or frauds.