Small Entrepreneurs Forced to Return COVID Aid Over Transaction Tax Compliance Issues

Small business owners across Slovakia are being forced to return government subsidies received during the COVID-19 pandemic due to new legislative changes and strict enforcement by labor offices. Despite using the financial aid in accordance with regulations at the time, entrepreneurs must now repay entire subsidies for failing to declare new business bank accounts required under updated rules. A beautician among those affected said the situation has forced her to close her business, describing the impact as devastating. The cases highlight how changes to Slovakia's transaction tax legislation and stricter administrative requirements are creating unexpected financial burdens for small entrepreneurs who originally received the aid legally during the pandemic economic crisis.