Ljubljana
EY
Dunajska cesta 111 1000 Ljubljana Slovenia
Indirect tax contacts
Anka Pogacnik +386 (1) 583-1754 anka.pogacnik@si.ey.com
Matej Kovacic +386 41 395 325 matej.kovacic@si.ey.com
A. At a glance
Name of the tax Value-added tax (VAT)
Local name Davek na dodano vrednost (DDV)
Date introduced 1 July 1999
Trading bloc membership European Union (EU)
Administered by Ministry of Finance (Tax Administration) (http://www.fu.gov.si/)
VAT rates
Standard 22% Reduced 5%, 9.5% Other Zero-rated (0%) and exempt
VAT number format SI12345678
VAT return periods Monthly or quarterly Thresholds Registration
Established EUR50,000 Non-established None
Distance selling EUR10,000
Intra-Community acquisitions None
Electronically supplied services EUR10,000
Recovery of VAT by non-established businesses Yes
B. Scope of the tax
VAT applies to the following transactions:
GMT +1
• The supply of goods or services made in Slovenia by a taxable person, including use of goods forming part of the business assets or for private use or for use of employees.
• The intra-Community acquisition of goods from another European Union (EU) Member State by a taxable person, including intra-community transfer of own goods (see the chapter on the EU)
• Reverse-charge services received by a taxable person in Slovenia
• The importation of goods from outside the EU, regardless of the status of the importer
Special rules apply to intra-Community transactions involving new means of transport and dis tance sales (see the chapter on the EU)
Quick Fixes. Pending introduction of a “definitive” system for the VAT treatment of intra-Com munity supplies of goods to taxable persons, the EU has adopted Quick Fixes for intra-Commu nity trade in goods. For an overview of the Quick Fixes rules, see the chapter on the EU.
Slovenian VAT legislation follows EU legislation with the following implementations:
• The VAT ID number became a substantive condition for applying the VAT exemption for intraCommunity transactions. In addition to the condition of proof of transport of goods, the sup plier therefore must indicate the VAT No. on the invoice. Taxable persons can provide that the goods left Slovenia with different documents, including the confirmation from the purchaser who receives the goods from the destination country.
• It adopts unified and simplified taxation rules from EU law for the transfer of goods from one Member State to another when applying call-off stock simplification.
• It simplifies the chain transactions to enhance legal certainty by following the unified rules for successive or chain deliveries of goods.
Effective use and enjoyment. To avoid instances of nontaxation or double taxation, EU Member States can apply use and enjoyment rules that allow a service that is “used and enjoyed” in the EU to be taxed or prevent a service that is “used and enjoyed” outside the EU from being taxed.
If a service is taxed in the EU under the use and enjoyment provisions, a non-EU supplier of the service may be required to register for VAT in every Member State where it has customers that are not taxable persons. For the information regarding the rules relating to VAT registration, see the chapters on the respective countries of the EU.
In Slovenia, no services are subject to the “use and enjoyment” provisions.
Transfer of a going concern. According to the Slovenian VAT Act, in the event of transfer of a business or a part thereof to another taxable person, it is deemed that no supply of goods or services has taken place. To apply the transfer of a going concern (TOGC) provision, the recipi ent must continue with the transferred activity and is, for VAT purposes, deemed to be the legal successor of the transferor. Nevertheless, a recipient who uses acquired assets for purposes other than those for which it is entitled to input tax deductions is liable to pay VAT in accordance with the provisions of VAT Act, which applies to the charging of VAT for the use of goods and ser vices for private purposes.
C. Who is liable
A taxable person is any person who independently carries out, in any place, any economic activ ity, regardless of the purpose or results of that activity.
VAT registration is required before the beginning of taxable activities in Slovenia. Under the VAT law, retrospective VAT registration is not possible.
Exemption from registration. Established businesses performing only VAT exempt transactions and non-established businesses that perform only VAT exempt and/or zero-rated export transac tions do not have to register for VAT. From 1 January 2022, the exemption is extended to nonestablished businesses who make supplies to a recipient registered for VAT purposes in Slovenia, where the recipient is obliged to settle the VAT according to the reverse-charge rule.
Voluntary registration and small businesses. For small businesses (whose taxable turnover in the last 12-month period has not exceeded or is unlikely to exceed EUR50,000), voluntary VAT reg istration in Slovenia is allowed. In this case, a small business that wishes to register must notify their choice in advance to the tax authorities and be treated as a taxable person for at least 60 months.
Group registration. Group VAT registration is not allowed in Slovenia.
Holding companies. In Slovenia, a pure holding company cannot be a member of a VAT group, as group VAT registration is not allowed in Slovenia.
Cost-sharing exemption. The VAT cost-sharing exemption (in accordance with VAT Directive 2006/112/EEC Article 132(1)(f) has not been implemented in Slovenia.
Fixed establishment. Slovenian VAT legislation does not have special provisions to define the term “fixed establishment” and follows EU legislation and practice. Existence of a fixed estab lishment depends on circumstances of each separate case and should be considered on case-bycase basis. There are no administrative guidelines outlining the conditions to be met for a fixed establishment.
Non-established businesses. A “non-established business” is a business that does not have an establishment in Slovenia. A non-established business must register for VAT purposes in Slovenia if it performs taxable activities in the territory of Slovenia. There is no registration threshold applicable for non-established businesses, which means that a non-established business must register for VAT purposes prior to performing the first taxable transaction. The VAT registration threshold therefore does not apply for non-established businesses.
Consequently, non-established businesses must register for VAT if they make any of the following supplies:
• Intra-Community supplies
• Intra-Community acquisitions
• Distance sales in excess of the threshold
• Supplies of goods and services that are not subject to the reverse charge (for example, goods or services supplied to private persons)
Non-established businesses that perform only VAT exempt and/or zero-rated export transactions do not have to register for VAT. There is also no provision for them to voluntarily register for VAT on this basis.
Tax representatives. A nonresident business (taxable person) with its seat outside the EU (which from 1 January 2021, includes the United Kingdom (UK)) must appoint a tax representative.
A nonresident business (taxable person) from another EU Member State that does not have a registered business or fixed establishment in Slovenia may appoint a tax representative. Individuals and legal entities that are taxable persons in Slovenia can be appointed as tax repre sentatives if they have an establishment or permanent address in Slovenia and are not a branch of a company.
A nonresident business, either established in another EU Member State or third country that wishes to account for an import in a VAT return must appoint a VAT representative. The VAT representative is held jointly and severally liable for any VAT due on imports (which includes the use of postponed import VAT accounting).
Tax representative of non-EU companies or EU companies having Procedure 42 are in general not jointly liable based on the tax authorities’ guidelines. This means that tax representatives are only held jointly and severally liable for import VAT.
Reverse charge. The reverse charge applies to supplies of most services made by non-established businesses to taxable persons registered for VAT in Slovenia. The recipient of services accounts for VAT using the appropriate Slovenian VAT rate. If the reverse charge applies, the non-estab lished supplier is not required to register for VAT in Slovenia. At the time of preparing this chapter, it is expected that from 1 January 2022 the reverse-charge mechanism also applies to supplies made by a non-established and non-VAT-registered business to a VAT-registered recipi ent
The reverse charge does not apply to the following services:
• Real estate
• Restaurant and catering services
• Cultural, artistic, scientific, educational, sporting, entertainment or similar services
• Valuations of movable tangible property or work on such property
• Short-term rentals of vehicles
Domestic reverse charge. Slovenia applies a domestic reverse-charge mechanism for certain sup plies. However, if a non-established supplier makes supplies that are subject to the local reverse charge in Slovenia, this does not mean that it is not obliged to register locally for VAT in Slovenia. The following activities fall within the scope of the domestic reverse charge:
• Certain supplies and services falling in Category F of the Slovenian Standard Classification of Activities and the installation of montage houses
• Hiring out of staff used for activities falling in Category F of the Slovenian Standard Classification of Activities
• Supplies of real estate for which the parties opted to tax
• Supplies of used material waste and scrap (special listed goods)
• Trade of greenhouse gas emissions
If a taxable person performs supplies subject to domestic reverse charge, it must file a PD-O Report. Deadline for the submission of the report is the last working day of the month, following the reporting period.
Digital economy. Specific VAT rules apply to cross-border supplies of goods and services sold via the internet (e-commerce) in all EU Member States with effect from 1 July 2021. These new rules apply to all direct sales to nontaxable persons (in practice, these are mostly private individuals), but we refer to these rules as e-commerce VAT rules because most of these transactions are conducted via the internet. In general, the place of supply is in the country of consumption, i.e., where the goods are shipped to or where the buyer of the goods or services resides, subject to any “use and enjoyment” provisions that may override this rule (see Section B, Effective use and enjoyment subsection above). Therefore:
• For supplies of services made by a nonresident supplier to a business customer (B2B), the business customer is responsible for accounting for the VAT due, using the reverse charge.
• For supplies of goods made by a nonresident supplier to a business customer (B2B), where the goods are transported from another EU Member State, the business purchasing the goods is responsible for accounting for the VAT due, as an intra-Community acquisition. If the goods come from outside the EU, the purchaser may have to report an importation of goods.
• For supplies of goods or services made by a nonresident supplier to a final consumer (B2C), the supplier is generally responsible for charging and accounting for the VAT due at the rate applicable in the customer’s country (unless the supplier’s sales fall beneath the distance selling threshold of EUR10,000 with effect from 1 July 2021). This VAT can be reported using a single VAT registration, using a “One-Stop-Shop” mechanism.
For more details about intra-EU distance sales, see the chapter on the EU.
Effective 1 July 2021, an e-commerce supplier may have a choice of how to account for VAT on its B2C supplies.
Local VAT registration. A nonresident supplier may choose to register for VAT in each Member State and account for VAT on all supplies made and recover input tax in accordance with local rules (see the Non-established businesses subsection above). Non-EU businesses may be required to appoint a fiscal representative for accounting for the VAT due on these transactions.
For detail on the application process in Slovenia, refer to the subsection, Non-established busi nesses, above.
One-Stop Shop. Effective 1 July 2021, a supplier can choose to account for the VAT due under the EU One-Stop Shop (OSS), which can be used for intra-EU cross-border supplies of goods and all cross-border supplies of services made to final consumers in the EU. Unlike the previous Mini One-Stop-Shop (MOSS) scheme that applied until 30 June 2021, the OSS is not limited to cross-border supplies of electronic services, telecommunication services and broadcasting ser vices.
The OSS is an electronic portal that allows businesses to:
• Register for VAT electronically in a single Member State for all intra-EU distance sales of goods and for B2C supplies of services
• Declare and pay VAT due on all supplies of goods and services in a single electronic quarterly return
The OSS can be used by businesses established in the EU and outside the EU. If a supplier or a deemed supplier decides to register for the OSS, it must declare and pay VAT for all supplies (goods as well as services) that fall under the OSS.
Where a taxable person chooses Slovenia as the country where they will centrally comply with their VAT obligations, they should notify the Slovenian tax authorities of the date on which tax able activity under OSS rules will commence. The Slovenian tax authorities will assign a VAT identification number to a taxable person who meets the prescribed conditions for the application of this special scheme.
For more details about the operation of the OSS, see the chapter on the EU.
Import One-Stop Shop. Effective 1 July 2021, the Import One-Stop-Shop (IOSS) scheme applies for B2C distance ales of goods from outside the EU.
Effective 1 July 2021, VAT is due on all commercial goods imported into the EU regardless of their value. The actual supply is subject to VAT in the country where the goods are imported (the country of destination). The IOSS facilitates the declaration and payment of VAT due on the sale of low-value goods (i.e., consignments valued at less than EUR150 per consignment). It allows suppliers selling low-value goods dispatched or transported from a non-EU country to customers in the EU to collect, declare and pay the VAT due. If the IOSS is used, the importation into the EU is exempt from VAT.
The IOSS in Slovenia can be used by taxable persons that have their registered office or business unit in Slovenia or have their registered office in a third country with which the EU has con cluded an agreement on mutual assistance. Taxable persons selling goods imported from third territories or from third countries may join the import regime in Slovenia indirectly by appointing an intermediary with its registered office or business unit in Slovenia to fulfill their obligations under this special regulation.
For more details about the IOSS, see the chapter on the EU.
The use of the IOSS special scheme is not mandatory. If VAT is not collected via the IOSS scheme, the importation of goods into the EU is subject to import VAT in the country of final destination and the Member State can decide freely who is liable to pay the import VAT, which could be the customer or the seller (or an electronic interface).
Postal services and couriers scheme. If the IOSS is not used and the customer is liable for the import VAT due on the supply (and importation) of consignments with a small intrinsic value (i.e., less than EUR150), the VAT can be collected using the special scheme for postal services and couriers.
In Slovenia, a postal or courier service applying this special arrangement must use it for all packages which, upon importation, are submitted to the tax authority on behalf of the recipient and whose real value does not exceed EUR150. A postal or courier service charges the VAT on imported goods, collects it from the recipient of the package upon delivery and pays it to the Slovenian tax authority. A postal or a courier service applying this special regime reports to the Slovenian tax authority on the VAT collected in the monthly reports and pays the total amount of VAT to the tax authority. A postal or courier service should keep good records of transactions, which enable the tax authority to monitor the correctness of the VAT declared and paid.
For more details about the special scheme for postal services and couriers, see the chapter on the EU.
Online marketplaces and platforms. Under the new EU VAT e-commerce rules, effective 1 July 2021, taxable persons who “facilitate” certain B2C sales of goods are deemed to have purchased and then supplied those goods themselves. This means that the single supply from the “underly ing” supplier to the final consumer is split into two deemed supplies:
• A supply from the supplier to the facilitator (deemed B2B supply).
• A supply from the facilitator to the final customer (deemed B2C supply). Any intermediation service provided by the facilitator is disregarded for VAT purposes.
This provision does not cover all sales facilitated via the facilitator. It only covers distance sales of goods imported from non-EU jurisdictions in consignments with an intrinsic value not exceed ing EUR150. The jurisdiction of residence of the supplier using the facilitator is irrelevant. The supply to the facilitating platform is VAT exempt and the supplies made by that platform follow the e-commerce VAT rules as described above. In addition, the provision also covers sales within the EU, if the supplier is not established within the EU. This applies to both local ship ments within one Member State as well as intra-Community shipments. In both cases, the final customer must be a nontaxable person.
A facilitator can register for VAT in Slovenia from 1 April 2021. The facilitator should meet the following conditions:
• Display on the webpage the amount of VAT that the buyer has to pay in the EU at the latest when the ordering process is completed
• Ensure that VAT is collected from the buyer on delivery
• Submit a monthly VAT return in electronic form via the government portal for imports in Slovenia
• Keep the records of sales for 10 years if registered in Slovenia
For more details about the rules for online marketplaces, see the chapter on the EU.
Vouchers. Slovenian VAT legislation defines two types of vouchers, single-purpose (SPV) and multipurpose vouchers (MPV).
The supply of goods or services to which the SPV relates is deemed to be any transfer of a SPV by a taxable person acting on its own behalf. The actual delivery of goods or services in exchange for a SPV accepted by the supplier as payment or partial payment is not considered to be a sepa rate transaction.
If the transfer of a SPV is made by a taxable person acting on behalf of another taxable person, the supply of the goods or services to which the voucher relates is deemed to have been made by the taxable person on whose behalf the taxable person acts.
If the supply of goods or services is made by a supplier that is not the taxable person who issued the SPV in their own name, that supplier is deemed to have supplied the goods or services to which the voucher relates to the taxable person who issued the SPV on their own behalf.
In the case of MPV, the obligation to charge VAT on a such voucher does not arise upon its trans fer, but only upon the actual handing over of the goods or the actual provision of the services in return for an MPV accepted as consideration, or part consideration, by the supplier for that sup ply or provision.
In the case of MPV, the consideration for the voucher constitutes the tax base for the supply of goods or services. In the absence of such information, the tax base is the monetary value shown on the voucher itself, which is reduced by the value of VAT paid for the supply of goods or services.
Registration procedures. VAT registration consists of two phases. In the first phase, the taxable person and its legal representative are entered in the Slovenian tax register and assigned tax numbers (paper forms available in English). Additionally, the taxable person is registered in the electronic filing system of the Slovenian tax authorities (paper forms available in English). For registration in the electronic filing system, a special electronic certificate should be obtained. In the second phase, the applicable form for VAT registration is submitted via this electronic system.
A taxable person must prove, by submitting a variety of documents, that it will perform taxable transactions in Slovenia. As proof that a taxable person intends to perform an VAT taxable activ ity, the person can submit contracts, a business plan, purchase orders, etc., and a statement that it intends to perform taxable transactions in Slovenia. A non-established taxable person also must provide a VAT certificate of VAT registration in its home country.
Depending on the responsiveness of the tax authorities, the timing of each step varies. A VAT registration usually takes six to eight weeks to complete.
Deregistration. A taxable person can deregister for VAT by submitting a deregistration request to the tax authorities in electronic form through their online portal. The tax authorities should decide within 30 days. The taxable person is deregistered as of the date stated in the tax authorities’ decision.
Changes to VAT registration details. In case of any changes to a taxable person’s VAT registration details, it is the taxable person’s obligation to notify the tax authorities within eight days on a prescribed form, that can be submitted online or in paper. All the information that has been entered into the tax register at the time of tax ID registration (name of company, address, legal representatives, etc.) must be updated when the change occurs.
D. Rates
The term “taxable supplies” refers to supplies of goods and services that are liable to a rate of VAT, including the zero-rate.
The VAT rates are:
• Standard rate: 22%
• Reduced rates: 5%, 9.5%
• Zero-rate: 0%
The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for the reduced rate or exemption.
Some supplies are classified as zero-rated (i.e., “exempt with the right to deduct input tax”), which means that no VAT is chargeable, but the supplier may recover related input tax. Zero-rated supplies include exports of goods outside the EU and related services and intra-Community
supplies of goods and intangible services supplied to another taxable person established in the EU or to a recipient outside the EU.
Examples of goods and services taxable at 5%
• Printed and electronic publications
Examples of goods and services taxable at 9.5%
• Foodstuffs (except alcoholic drinks and catering services)
• Water supplies
• Passenger transport
• Books, newspapers and periodicals if they contain no more than 50% of the promotional con tent or content that includes no more than 50% of music, movies and games, including lottery, as well as shows and events in the fields of politics, culture, art, sports, science and entertain ment
• Services of authors and composers
• Agricultural products and services
• Pharmaceutical products and medical equipment
• Cultural events
• Hotel accommodation
• Use of sports facilities
• Services of undertakers and cemetery services
The term “exempt” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
• Real estate transactions (except “new buildings”)
• Financial services
• Insurance transactions
• Betting, gambling and lotteries
• Public radio and television broadcasts
• Education
• Health care and medical services
• Cultural services
Option to tax for exempt supplies. A taxable person may opt to tax real estate transactions (except “new buildings” and building land), provided that the recipient has the full right to deduct, the tax authorities do not need to be notified. However, a written agreement about the option to tax must be made between the contracting parties prior to the supply being made.
E. Time of supply
The time when VAT becomes due is called the “chargeable event” or “tax point.” The following are the general rules in Slovenia for determining the chargeable event:
• VAT is due when goods are delivered or when services are performed
• If no invoice is issued for supplied goods or services, VAT is due on the last day of the tax period (month) in which the goods are delivered or the services are performed
Deposits and prepayments. If payment is made before the supply is made (prepayment), VAT is due on the day on which the prepayment is received. For intra-Community acquisitions or sup plies of goods, prepayments do not create a tax point.
Continuous supplies of services. In case of continuous supplies of services where periodical invoices are raised or payments are made, VAT becomes due upon expiry of the period to which the payments or invoices relate. Where services are continuously supplied over a period of more
than one year and no invoices are issued or payments are made during that period, VAT becomes due at the end of each calendar year until such supplies of services come to an end.
Goods sent on approval for sale or return. There are no special time of supply rules in Slovenia for the supply of goods sent on approval for sale or return. As such, the general time of supply rules apply (as outlined above).
Reverse-charge services. For reverse-charge services, VAT becomes due when services are per formed.
Leased assets. In case of a financial lease (where the ownership of goods is transferred to the lessee upon payment of the last installment) this is considered a supply of goods and VAT becomes due when the assets are physically handed over. An operational lease is considered a service and VAT becomes due when the service is performed.
Imported goods. VAT for imported goods becomes due when the import is made or when the goods leave the duty suspension regime and are released for free circulation.
VAT on imports can be accounted for in the VAT return, subject to certain conditions.
Intra-Community acquisitions. For intra-Community acquisitions of goods, VAT is due on the day when the invoice is issued. If an invoice for the supply is not issued or is issued before the supply is made, VAT is due on the 15th day of the month following the month in which the goods are delivered.
Intra-Community supplies of goods. For intra-Community supplies of goods, VAT becomes due on the day when the invoice is issued. If an invoice for the supply is not issued, VAT becomes due on the 15th day of the month following the month in which the goods are supplied.
Distance sales. There are no special time of supply rules in Slovenia for supplies of distance sales. As such, the general time of supply rules apply (as outlined above).
F. Recovery of VAT by taxable persons
A taxable person may recover input tax, which is VAT charged on goods and services supplied to it for business purposes. A taxable person generally recovers input tax by deducting it from output tax, which is VAT due on supplies made.
Input tax includes VAT charged on goods and services supplied in Slovenia, VAT paid on imports of goods and self-assessed VAT on intra-Community acquisitions of goods and reverse-charge services.
A valid tax invoice or customs document must generally accompany a claim for input tax recov ery.
If a taxable person does not make a VAT deduction in the current tax period, they may make this deduction at any time after this tax period.
The time limit for a taxable person to reclaim input tax in Slovenia is no later than the last tax period of the calendar year following the year in which they were granted the right of deduction. For example, input tax for purchase incurred in January 2020 can be claimed back in VAT return for December 2021 at the latest.
Nondeductible input tax. Input tax may not be recovered on purchases of goods and services that are not used for business purposes (for example, goods acquired for private use by an entrepre neur). In addition, input tax may not be recovered for some items of business expenditure.
Examples of items for which input tax is nondeductible
• Hospitality costs (accommodation, food and drinks, and entertainment)
• Purchase, lease, fuel and maintenance of cars and boats (except if used by driving schools or for public transportation)
Examples of items for which input tax is deductible (if related to a taxable business use)
• Advertising
• Purchase, lease, fuel and maintenance of buses and trucks
• Telephones
• Books and newspapers
• Attendance at seminars (except food and drinks)
• Raw materials
Partial exemption. Input tax directly related to the making of exempt supplies is generally not recoverable. If a taxable person makes both exempt and taxable supplies, it may not recover input tax in full. This situation is referred to as “partial exemption.”
Input tax directly relating to taxable supplies is fully recoverable, while input tax directly relating to exempt supplies is not recoverable.
To determine the amount of input tax that may be recovered one of the following methods may be used:
• Primarily deduction of input tax should be made by using actual data in the taxable person’s books and accounts or other records on the total amount of input tax, including the amount of input tax that is deductible.
• Determination of the amount of deductible input tax using a pro rata method for the whole busi ness, if the taxable person is unable to determine the amount of input tax as described above.
• Determination of the amount of deductible input tax using several deductible amounts for each of its various fields of business activity separately. A “field of business activity” is any level of activity of the taxable person according to a standard classification of activities or organiza tional units of the taxable person (such as a separate plant or business unit).
Under the pro rata method, the total annual supplies on which input tax is deductible (exclusive of VAT) is divided by the total annual supplies, including exempt supplies, state subsidies and grants.
Approval from the tax authorities is not required to use any of the partial exemption methods in Slovenia.
Capital goods. Capital goods are items of capital expenditure that are used in a business over several years. Input tax is deducted in the VAT year in which the goods are acquired and taken into use. The amount of input tax recovered depends on the taxable person’s partial exemption
recovery position in the VAT year of acquisition and first use. However, the amount of input tax recovered for capital goods must be adjusted over time if the taxable person’s partial exemption recovery percentage changes during the adjustment period.
In Slovenia, the capital goods adjustment applies to the following assets for the number of years indicated:
• Real estate: adjusted for a period of 20 years
• Other tangible fixed assets: adjusted for a period of five years
In Slovenia, the capital goods adjustment does not apply to any services. However, if services are booked into the accounts as assets, then the capital goods adjustment does apply.
Refunds. If the amount of input tax recoverable in a tax period exceeds the amount of output tax payable in that same period, the taxable person has an input tax credit. An input tax credit is car ried forward to the following tax period. However, a VAT-registered person is entitled to a refund of the input tax credit within 21 days after submitting a VAT return form for the tax period (if the VAT credit is claimed in the relevant VAT return).
The tax authorities pay interest on delayed repayments of VAT. The statutory rate of interest is 0.0247% per day.
Pre-registration costs. A taxable person has the right to deduct input tax incurred prior to the VAT registration in Slovenia (under the assumption that all other conditions for VAT deduction are met (e.g., received correct invoice for purchased goods, use of goods for economic activities of tax able person).
The right to input tax deduction must be exercised by the end of the year following the year in which it was received (e.g., input tax for purchase incurred in January 2021 can be claimed back in VAT return for December 2022 at the latest).
Bad debts. If payment for a supply is not received, a taxable person may adjust (reduce) the VAT amount if, according to the final court resolution of a completed bankruptcy procedure or suc cessfully completed compulsory settlement, the taxable person’s receivables were either not set tled or not settled in full. The same applies to a taxable person who obtains a final court resolution or another document clearly showing that in the closing execution procedure, the taxable person’s receivables were not settled or not settled in full. A taxable person may also adjust the VAT amount if their receivables were not settled due to the fact that the debtor was deleted from the court register or any other relevant register or prescribed records.
Regardless of the above provisions in the Slovenian VAT legislation, the amount of non-paid VAT for outstanding receivables can be adjusted after submission of a claim for the respective receiv able in the bankruptcy proceeding or compulsory settlement. However, this claim should first be recognized by the applicable officials in the bankruptcy proceeding or compulsory settlement.
Noneconomic activities. Input tax incurred on purchases that are used for noneconomic activities is not recoverable in Slovenia.
G. Recovery of VAT by non-established businesses
The Slovenian VAT authorities refunds VAT incurred by businesses that are neither established nor registered for VAT in Slovenia. Non-established businesses may claim Slovenian VAT to the same extent as VAT-registered businesses.
EU businesses. For businesses established in the EU, refunds are made under the terms of the EU Directive 2008/9/EC. The VAT refund procedure under the EU Directive 2008/9 may be used only if the business did not perform any taxable supplies in Slovenia during the refund period (excluding supplies covered by the reverse charge). For full details, see the chapter on the EU.
Please find below specific rules for Slovenia:
• Requests for refund may relate to the following: Purchases of goods and services for which invoices were issued during the refund period, provided VAT became chargeable before or on the invoice date, or for which the liability to charge VAT was incurred during the refund period, provided that the invoice had been issued before the date when VAT became chargeable Import of goods during the period of refund
Invoices or import documents not included in any earlier request for refund and concerning transactions completed during the calendar year in question
• A request for refund may be made for the period of refund that shall not be shorter than three months of a calendar year and not longer than a calendar year. A request may also relate to a period shorter than three calendar months, provided that this period represents the remainder of a calendar year.
• The VAT legislation determines the minimum amount of VAT for which a refund may be claimed:
EUR400 when the request relates to a refund period that is shorter than one calendar year but not shorter than three months
EUR50 when the request relates to a refund period of one calendar year or to the remaining portion of a calendar year
• VAT refund claims must be submitted no later than 30 September following the expiry of the calendar year in which VAT is charged. If the deadline expires on a nonworking day, then the deadline shall not expire on the first working day that follows.
Non-EU businesses. For businesses established outside the EU, refunds are made under the terms of the EU 13th Directive.
Slovenia applies the principle of reciprocity; that means the country where the claimant is estab lished must also provide VAT refunds to Slovenia businesses.
Please find below specific rules for Slovenia:
• The deadline for refund claims is 30 June following the calendar year in which the tax was incurred. This deadline is strictly enforced.
• Applications for refunds of Slovenian VAT by non-EU businesses must be filed with the Slovenian tax authorities in electronic form using the tax authorities’ online portal (https://edavki. durs.si/EdavkiPortal/OpenPortal/CommonPages/Opdynp/PageA.aspx). To gain access to the online portal of the tax authorities, a non-EU business and its legal representative(s) must obtain a Slovenian tax numbers.
• A taxable person established in a non-EU Member State may submit a claim for refund with the tax authorities:
For a period of time that is less than one calendar year and not less than six months; how ever, the amount of VAT for which a refund is requested shall not be less than EUR400. For a period of one calendar year or the remaining portion of a calendar year. This claim may also cover invoices or import documents that were not a part of previous claims and relate to transactions completed in the current calendar year; however, the required refund amount must not be less than EUR50.
Late payment interest. Any taxable person who does not receive the surplus VAT returned from the Slovenian tax authorities within the legally prescribed deadline is entitled to the default interest at a daily interest rate of 0.0274%.
H. Invoicing
VAT invoices. A taxable person must generally provide a VAT invoice for all taxable supplies made, including exports and intra-Community supplies. Invoices are not required for a limited range of supplies, including the following:
• Supplies by taxable persons that perform agricultural or forestry activities and sell these prod ucts and services to final consumers
• The sale of tickets, season tickets and tokens for passenger transport (trains, buses and cable cars), stamps, court stamps, postal forms, payments for participating in games of chance, periodicals, vending machine sales, sale of mobile phone cards by ATM, GMS network and the internet, sale of tokens from change machines and supplies of services at “teleservice points”
• Exempt financial services performed in Slovenia or outside the EU for which the taxable per son issues a large number of documents to recipients
The issuance of an invoice is also not required for a supplier that chooses to account for the VAT under the EU OSS.
However, the taxable person should issue a consolidated document, such as a separate bank state ment, which includes the value of services charged and the clause that VAT is not charged accord ing to the applicable article of the VAT law.
From 1 January 2022, the issuance of an invoice is not required for B2C supplies unless the customer requests it and provided that information on the supply can be ensured in a different way and supervision on the VAT compliance is possible.
Credit notes. If the taxable amount subsequently changes as a result of the return of goods or the granting of a discount, the tax base is lowered accordingly. The taxable person may adjust (reduce) the amount of VAT payable if it informs the recipient in writing (for example, by issuing a credit note) about the nondeductible amount. A credit note must include the information pre scribed for a simplified VAT invoice.
Electronic invoicing. Slovenian VAT law permits electronic invoicing in line with EU Directive 2010/45/EU (see the chapter on the EU).
Certified cash register. Under the “certified cash register” system, all legal and natural persons that perform cash transactions (or cash equivalent transactions) and are obliged to keep books and records must use certified tax registers. The cash registers are connected to the central infor mation system of the financial authority via the internet, so processed invoices are verified and saved in real time, enabling traceability and effective control over invoices, thus helping to reduce the grey economy.
Simplified VAT invoices. In general, taxable persons can issue simplified invoices for the supply of goods or services carried out in Slovenia, if at least one of the following conditions is met:
• The net amount stated on the invoice does not exceed EUR100
• If a taxable person issues a document or a message that changes the original invoice and refers to it undoubtedly
• If the invoice is issued to a final customer
A taxable person who issues a simplified invoice to another taxable person and needs such an invoice in order to claim VAT deduction has to indicate the name and address of the buyer or customer in the invoice.
A taxable person should not issue a simplified invoice for goods or services supplied to another Member State in which VAT is chargeable or if such taxable person’s place of establishment in that Member State does not participate in the supply in terms of Article 192a of Council Directive 2006/112/EC and the person liable to pay VAT is the person to whom the goods or services are supplied.
A taxable person who supplies goods and services in the cases where recipients of goods and services act as persons liable for payment of VAT indicates in the simplified invoice that the reverse charge applies.
If a taxable person supplies goods or services at different tax rates, the amount of VAT in a sim plified invoice must be shown by tax rate separately.
Where a taxable person supplies goods or services that are exempt from VAT, it must make refer ence in its invoice to the valid provision of the Sixth Council Directive 2006/112/EEC or to the corresponding Article of Slovenian VAT Act or any other reference indicating that the supply of goods or services is exempt from VAT.
Self-billing. Self-billing is allowed in Slovenia. A self-billed invoice may be issued by the buyer of goods or services for the goods or services supplied to them by a taxable person (self-invoic ing) where both parties agree on this procedure in advance and specifically agree on the method of accepting each invoice by the taxable person by whom the goods or services are supplied. The buyer of goods or services must indicate on the self-billed invoice that it is issued on behalf and for the account of the taxable person who supplied the goods or services to the buyer.
Proof of exports and intra-Community supplies. Slovenian VAT is not due on supplies of exported goods or on intra-Community supplies of goods (see the chapter on the EU). However, to qualify as VAT-free, exports and intra-Community supplies must be supported by evidence that the goods have left Slovenia. Acceptable proof includes the following documentation:
• For an export, a copy of the export document, officially certified by customs. In certain cases, an invoice stamped by customs, a mail freight declaration or a transport document is acceptable
• For an intra-Community supply, an invoice with the purchaser’s VAT identification number and corresponding transport document (or other suitable document that clearly refers to the freight of goods related to the invoice)
Foreign currency invoices. Invoices may be issued in a foreign currency. The VAT amount must always be in the domestic currency, which is the euro (EUR). The exchange rate that must be used is the foreign exchange rate of the European Central Bank (also published by the Bank of Slovenia) that is valid on the date on which the tax liability arises and that is published by the Bank of Slovenia.
Supplies to nontaxable persons. Special rules apply to the place of supply for supplies of telecom munications, broadcasting and electronic services to nontaxable customers. Slovenian suppliers of these services are required to issue full VAT invoices to nontaxable customers. For further details of the VAT rules on electronic services in the EU, see the chapter on the EU.
VAT-registered suppliers can also issue simplified invoices to non-VAT registered customers (private consumers) only where the invoice amount does not exceed EUR100. If the invoice amount exceeds EUR100, then the VAT-registered supplier must issue a normal VAT invoice.
Transactions between related parties. Slovenia follows the principle of open market value in case of transactions between related entities (as defined in corporate and personal income legislation), which do not have full right to input tax deduction. Taxable amount for the supply of goods and services between connected persons equals the open market value when the consideration for the supply is:
• Lower than the open market value and the recipient of the supply is not entitled to a full VAT deduction or exemption according to the VAT Act
• Higher than the open market value and the supplier is not entitled to a full VAT deduction
The open market means the full amount that the customer or recipient should pay to an indepen dent supplier or contractor for a comparable supply of goods or services in the territory of Slovenia upon acquisition of goods and services in conditions of fair competition. When no comparable supply of goods or services can be determined, the open market value has the fol lowing meaning:
• For goods, an amount not lower than the purchase price of goods or of similar goods or, where there is no purchase price available, the cost price determined at the time of supply
• For services, an amount not lower than the full costs to be paid by a taxable person for the services supplied
Records. Every taxable person must ensure that copies of the invoices issued by them, or by their customer or, in their name and on their behalf, by a third party and all the invoices that they have received are stored.
The Tax Procedure Act stipulates that taxable persons must keep books of account and records (e.g., issued invoices, received invoices, contracts on purchase and sale of short-term financial investments, and borrowing of short-term loans, settlements, transaction accounts and others) archived as a hard copy or in electronic form until the expiry of the absolute statute of limitations of the right to recover the tax to which they refer – that is amounting to 10 years. Taxable persons can keep such records in Slovenia or outside the country but must notify the tax authorities of this choice within 10 days of the decision.
Record retention period. All received and issued invoices should be archived for 10 years after the end of the year to which they relate (20 years if the invoices relate to immovable property).
Electronic archiving. A Slovenian taxable person may archive invoices outside Slovenia after informing the tax authorities. The basic rule is that invoices must be archived in their original form. The condition for electronic archiving is that a taxable person ensures that the file content cannot be modified or erased while at the same time it can be reproduced if needed.