Financial Inclusion and Compliance in Slovakia: A Successful Model for Tax Administration

Slovakia’s Financial Administration has undergone significant transformations since its inception in 2012. The institution has successfully implemented various projects aimed at improving tax collection efficiency, countering fraud, and enhancing services to clients.

Mission and Structure

The Financial Administration is headed by a President appointed by the Minister of Finance, with its main mission being to effectively collect duties and taxes to provide revenue for the state budget of Slovakia and the European Union. The institution’s main objectives include:

Protecting the country’s economic interests
Guarding state budget expenditure

Key Initiatives

Integrated Information System (IS)

The Financial Administration has introduced an integrated information system for tax administration, launched in 2015. This system provides:

Increased security
Retrospective changes to data
Full user support for tax administration
Updates reflecting legislative changes

Electronic Communication

The institution has extended its efforts towards electronic communication, launching the Central Electronic Mailbox (CEM) to facilitate services in foreign trade transactions involving both businesses and government bodies. Additionally, an electronic customs clearance system was introduced, resulting in a 99.7% rate of customs declarations filed electronically by the end of 2017.

Financial Administration Portal

Citizens can now manage their tax and customs-related matters through the Financial Administration Portal, which provides a one-stop service offering information to various client types. Over half a million taxpayers have communicated with the Financial Administration via electronic means since the portal’s launch in 2014.

The institution has gained recognition for its effective communication with the public, becoming the first state institution in Slovakia to use social networks and being appreciated by the public as the best communicating state institution of the country. With over 60,000 entities communicating through its Facebook page, the Financial Administration continues to engage with citizens online.

Fighting Tax Fraud

The institution has made significant strides in fighting tax fraud, implementing various measures such as:

VAT ledger statement
Tax Cobra (cross-institutional teams to fight fraud)
Excise Stamp Information System

The Financial Administration has also developed active cooperation with EU Member States, OECD countries, and the USA for the exchange of information on taxable entities.

Automated Information Exchange

The automated information exchange has become a crucial instrument in improving tax collection efficiency and eliminating cross-border tax transfers as a means of tax evasion. With its commitment to financial inclusion and compliance, the Financial Administration continues to provide high-quality services to clients while protecting the country’s economic interests.