The European Commission opened an in-depth investigation on Tuesday 2 April into a Slovak tax regime in the food retail sector, fearing that some tax exemptions may give retailers a selective advantage over their competitors.
This tax regime came into effect on 1 January 2019 and should normally have been paid for the first time at the end of April.
Under this measure, food retailers must pay a quarterly tax corresponding to 2.5% of their total turnover. However, several exemptions are provided for, in particular if retailers fulfil several conditions having regard to their size, the geographical scope of their activity in Slovakia or the nature of their activity. Similarly, an exemption is provided for retailers who are part of a business alliance or franchise.
Under these exemptions, only seven retailers, six of which are owned by companies established outside the Slovak territory, would be subject to the tax in question.
Following complaints received, the Commission has taken an interest in this tax system. Fearing that the application of the various tax exemptions would confer a selective advantage on certain companies, which would amount to State aid, the EC decided to open an in-depth investigation in this respect. It also ordered Bratislava to suspend the application of this tax regime during the investigation. (Original version in French by Lucas Tripoteau)