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The European Commission has accepted the Slovak argument, it has recognized the VAT on eligible costs to finance transport projects financed by the euro, and Brazil and Kosice are returning millions of euros.
The two largest Slovak cities paid for the modernization of the tram line from European funds. However, both of them were threatened to give up part of the European money in the EU budget. The reason for this was to change the VAT invoice rules for euro-funded projects at the construction site.
European legislation on euro funds allows VAT to be regarded as eligible expenditure only if it is the final expenditure of the recipient which the state can not claim to be repaid.
Under the transport sector, new settlements can cover even all operational programs that include beneficiaries from a municipality or city subsidy.
The Slovak government lobbied for VAT in Brussels to be considered a legitimate price for transport projects financed by the euro.
As Richard Rush, Deputy Minister of Investments and Informatics, was announced on Friday (November 9th). A former Mayor of Košice called on the Commission to take a decision on "an excellent report on the whole of Slovakia".
"After many months, the European Commission has taken national arguments, the government and the city, and money for transport projects will come back," said Rashi's decision. According to Rashi, a cat should have a cash account in this calendar year.
Bratislava had a loss of 78 million euros.
In 2017, Košice received a statement from the European Commission stating that the city would stop using the appropriate VAT. In order to modernize the tram lines, the municipality should receive 20 percent less money than initially expected. In 2017 and 2018, the city accounts for the full repayment of the amount.
"The European Commission has sent a letter stating that the administration of the Integrated Infrastructure Operations Program of the Ministry of Transport does not have to pay VAT on public transport investments," Richard Rashi, who led Kosice during a municipal tram repair, described the situation at a Friday press conference.
At the same time, the city had to repay the funds from older applications for non-repayable financial support when it was regularly reimbursed.
"For the city of Košice, VAT meant that € 14.5 million would not be paid from VAT with a total tax of € 15.683 million," said Deputy Prime Minister.
The city faced huge financial problems, therefore the municipality asked the Ministry of Finance to return the financial contribution without interest. Salvation was approved at the beginning of this year.
As in the past year, Bratislava's Ivo Nesrovnal, Bratislava mayor, said that part of the return of European money also threatens capital. It modernized trams and the construction of a public transport system in the city from Eurofonds. He did not say that it could be said that Bratislava could reach 78 million euros.
The management of both municipalities refrained from claiming that the Commission had already changed the terms of use during the implementation of projects.
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