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  • Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 7/1/2013

Slovenia: VAT essentials 

Essential information regarding VAT as it applies in Slovenia.


Scope and Rates

What supplies are liable to VAT?


Value-added tax (VAT) is due on any supply of goods or services made in Slovenia, where there is a taxable supply made by a taxable person in the course or furtherance of a business carried on by said person. Supply of goods shall mean the transfer of the right to dispose of tangible property as owner. Supply of services shall mean each transaction that is not supply of goods (including abandonment of ownership rights, the omission or toleration of any action or state, providing services based on the law or other act).


Supply does not include anything done otherwise than for a consideration. However, certain supplies carried out for no consideration are deemed as taxable supplies; for example, use of goods for non-business purposes (business assets used for private purposes or for the private purposes of his/her employees, or disposal of goods free-of-charge).


What is the standard rate of VAT?


The standard rate of VAT is 22 percent.


Are there any reduced rates, zero rates, or exemptions?


Yes. There is a reduced rate of 9.5 percent for certain goods and services (specifically determined by the VAT Act), including:


  • foods
  • water supplies
  • drugs and medicines
  • medical equipment (including diapers)
  • transport of passengers and their personal luggage
  • admission fees to cultural sites
  • books, newspapers, and periodical publications
  • hotels and similar accommodation
  • funeral services and related goods
  • public hygiene services
  • sporting facilities
  • flats, housing, and other facilities intended for permanent residence and parts of these buildings that are part of social policy, including the construction, renovation and repair thereof
  • renovation and repairing of private apartments, excluding materials, which are an essential part of the supply
  • window cleaning and cleaning in private households
  • copyright and services in the area of literature and art, copyright in the area of science, and works of art
  • sale of art works under certain conditions (sale by the author or by the seller who is not a dealer, etc.)animals for fattening, seeds, seedlings, fertilizers and services for agricultural, forestry, and fishing use
  • import of some artistic objects, collectors pieces and antiques;
  • minor repairs of bicycles, shoes and leather products, clothing and household linen (including mending and processing)
  • domestic care services (such as home help and care for the elderly, sick or disabled);
  • hairdressing
  • supply of potted plants, seedlings, cut flowers.

There is an extensive list of exempted supplies with the right of input VAT deduction, including:


  • exports
  • services, directly connected to export or import of goods, for which one of customs delay procedures has been implemented after the import
  • services relating to the import of goods, if such value of services is included in the taxable basis
  • intra-Community supplies
  • the purchase, repair, maintenance, lease, and rental of sea-going vessels and aircraft
  • supplies for the official purposes of diplomatic or consular representatives.

The list of exemptions (without the right of input VAT deduction) includes:


  • activities in the public interest
  • insurance and reinsurance transactions
  • supply of immovable properties, except the first transfer of the ownership rights or the rights to dispose of newly-constructed immovable properties or if the supply thereof before two years from the first disposal is made
  • leasing and sub-letting of immovable properties
  • supply of land, except building land
  • financial transactions (limited)
  • management of investment funds
  • supplies of gold to the Bank of Slovenia
  • postal services
  • games of chance.

What are the other local indirect taxes beside VAT?


  • motor vehicle tax
  • real property transfer tax
  • tax on games on chance
  • insurance premium tax
  • financial transaction tax
  • excise duties.

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Registration

Who is required to register for Slovenian VAT?


Slovenian Entities


If a business makes taxable supplies in Slovenia over the VAT registration threshold EUR50,000 in the last 12 months, it will be required to register and account for Slovenian VAT. If it trades below the registration threshold it can still choose to register for VAT as a Voluntary Trader, however in this case it should stay VAT identified for at least 60 months. The threshold is not relevant for foreign entities.


Taxable persons shall be obliged to report to the tax authorities when their activities in respect of which they are liable to charge, levy and pay VAT, begin, change, or cease.


Taxable persons and legal entities that acquire goods from other European Union (EU) member states where such acquisitions are taxable in Slovenia have to register for VAT purposes in Slovenia.


Non-Slovenian Entities


Foreign legal entities should register for VAT in Slovenia for all supplies of services and goods for which the place of supply is considered to be Slovenia, and no reverse charge mechanism is applicable.


If a business is not registered for VAT in Slovenia but sells and delivers goods from another EU Member State to customers in Slovenia who are not VAT registered (distance sales), where the value of those sales exceeds a threshold of EUR35,000 it is required to register and account for VAT in Slovenia.


Access the VAT registration form on the Slovenian tax authority’s web site: http://www.durs.gov.si/fileadmin/durs.gov.si/pageuploads/Obrazci_ANG/Claim_for_issuing_VAT
_identification_number.pdf
. (PDF 296 KB)


Are there penalties for not registering or late registration?


Failure to report to the tax authority when activity begins, changes, or ceases, or failure to submit an application for registration within the prescribed time limit may result in the imposition of a fine ranging from EUR2000 to EUR125,000 depending on the type of offense.


If a taxable person who does not have a seat in Slovenia and supplies goods and/or services in Slovenia fails to register for VAT and/or appoint a fiscal representative, the said person is likely to lose its right to reimbursement of VAT paid on the acquisition of the goods and services supplied by other taxable persons in Slovenia or on the import of goods into Slovenia.


Is voluntary VAT registration possible for an overseas company?


No.


Are there any simplifications that could avoid the need for an overseas company to register for VAT?


If a business supplies goods or services on the territory of Slovenia, then it is required to register and account for Slovenian VAT.


However, there is a safety mechanism applicable in Slovenia. In case the foreign tax payer does not register and pay VAT in Slovenia, the receipient of goods or services must pay the VAT to the State Treasury.Nevertheless, a foreign taxpayer is still in breach of local legislation.


Does an overseas company need to appoint a fiscal representative?


Taxable persons, with their main seat of business in a third country or on third territory, who have not established a registered business and do not have a fixed establishment in Slovenia must appoint a tax representative who is liable to pay the VAT if the foreign taxpayer fails to fulfill his obligation (VAT registration and VAT payment). Taxable persons established in another EU MC may appoint a fiscal representative.

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VAT grouping

Is VAT grouping possible?


No.


Can an overseas company be included in a VAT group?


Not applicable.

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Returns

How frequently are VAT returns submitted?


Most registered businesses are required to submit VAT returns on a monthly basis. However, for taxpayers whose annual turnover does not exceed EUR210,000 the VAT return may be submitted on a quarterly basis.


Failure to submit VAT returns on time may result in a penalty of between EUR2,000 and EUR125,000, depending on the type of offense.


For a taxable person who commences with performing a taxable activity, the tax period for the first 12 months shall be fixed at calendar month.


For the taxable person with the seat of establishment outside Slovenia, the tax period shall be a calendar month regardless of the volume of annual turnover.


Are there any other returns that need to be submitted?


European Sales List (Recapitulative Statements)


If a business supplies goods that are shipped from Slovenia to VAT registered businesses in other EU Member States or render services to a VAT payer identified in other member state, it is required to complete Recapitulative Statements. Recapitulative Statements are completed on a monthly basis.


Intrastat Supplementary Declarations


VAT registered businesses with a value of dispatches or arrivals to or from other EU member states that exceed a threshold EUR 120,000 (for arrivals) and EUR 200,000 (for dispatches) per calendar year must complete respective Intrastat report each month. The special treshold is set at EUR 4,000,000 for arrivals and EUR 9,000,000 for dispatches of goods.


Failure to submit statistical reports on time may result in a penalty EUR 1,252.


Access statistical reports on the Statistical Office Web site:



If a business receives a purchase invoice in foreign currency, which exchange rate should be used for VAT reporting purposes? (e.g. central bank’s exchange rate applicable on the date of the invoice)


Where the value, which is the basis for determining the taxable amount, except for the importation of goods, is expressed in a foreign currency, the exchange rate applicable to the conversion of this amount into the national currency (EUR) shall be the foreign exchange reference rate of the European Central Bank valid on the day when the tax liability arises and published by the Bank of Slovenia.

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VAT recovery

Can a business recover VAT if it is not registered?


Yes. If a business is established in another EU Member State and is not performing taxable activities in Slovenia, then it should submit an electronic claim under EU Directive 2008/09/EC to the tax authorities in your home country.


A non-EU business should recover the VAT under the 13th Directive. Under both of these provisions there are strict time limits for making claims. Taxable persons shall have the right to a refund of input VAT that relates to a period of between 3 months and 1 year (the period can be shorter than 6 months if it represents the remainder of the calendar year). The time limit for submitting a refund claim is 6 months after the year in which the VAT was charged.


The minimum amount to be claimed for the period not less than six months is EUR 400, while for the rest of calendar year the minimum amount is EUR 50.


Non-EU resident entities are entitled to a VAT refund on the basis of reciprocity.


Does your country apply reciprocity rules for reclaims submitted by non-established businesses?


Yes: Croatia*****, Iceland, Israel, Japan, South Korea*, Canada, Liechtenstein, Macedonia, Norway, Switzerland, Turkey**, Serbia*** , Taiwan****, Montenegro******.


* applies from 26 June 2009 for VAT refund paid on purchases for the restaurant and accommodation, advertising, services related to electric and telecommunications services, rental services and real estate in the purchase and repair of buildings and office furniture. The amount of VAT refund of less than EUR200 is not allowed;


**applies from 10 October 2006 for VAT refund paid on purchases of goods and services in the transportation business and the purchase of goods and services related to participation in fairs and exhibitions;


***applies from 2 January 2012 for VAT refund paid on purchases of goods and services intended for rent, regulation, manufacture and repair of exhibition space, the goods needed for the organization of exhibition space, electricity, water, gas, heating, cooling, telephone and telecommunications connections to the needs of exhibition space, parking and service installation;


****applies from 18 November 2010 for VAT refund paid on purchases of goods and services used in trade fairs, business travel, market research, to carry out market research for the implementation of marketing seminars and other similar temporary commercial activities;


*****full reciprocity applies from 1 July 2011 onwards. Until 1 July 2011, the reciprocity was applicable only for VAT refund paid on purchases of goods and services for the rental exhibition space, the supply of exhibition space with electricity, water, gas, heating, cooling telephone and telecommunication connections, edit and repair of exhibition space and parking costs;


*****full reciprocity applies from 1 July 2011 onwards. Until 1 July 2011, the reciprocity was applicable only for VAT refund paid on purchases of goods and services for the rental exhibition space, the supply of exhibition space with electricity, water, gas, heating, cooling telephone and telecommunication connections, edit and repair of exhibition space and parking costs;


******applies from 1 March 2013 – VAT refund cannot be applied for invoices, which have been issued prior to that date, even though that a VAT refund claim was submitted after 1 March 2013.


Are there any items that businesses cannot recover VAT on?


Yes. There are certain items that businesses cannot recover VAT on. For example:


  • Exempt supplies: Where VAT relates to both taxable and exempt supplies, businesses need to calculate a pro-rata.
  • Non-business (including private) activities: Where VAT relates to both business and non-business activities, a pro-rata must be calculated.
  • Motor cars (excluding commercial vehicles): With certain exceptions you cannot recover VAT on the purchase of motor cars and related goods/services (oil, filters, spare parts, maintenance, etc.).
  • Business entertainment: VAT is generally not recoverable on business entertainment costs (food, beverage, and social events).
  • Tour operators' margin scheme: A travel agency (or tour operator) shall not be entitled to deduct VAT charged by other taxable persons on the supply of goods and services performed for the direct benefit of the traveler.
  • Goods sold under margin schemes for second hand goods: There are number of schemes which provide for VAT to be accounted for on the goods' sales margin, but do not allow VAT recovery on the purchase of those goods.

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International Supplies of Goods and Services

How are exports of goods and services treated?


Goods


If a business exports goods to a customer (business or private) outside of the EU then it does not need to charge VAT but should keep proof of export.


Services

In general the supply of services by a business established in Slovenia to a foreign business customer (B2B), is taxable in the country of the recipient under the reverse charge mechanism. However, supplies of services to a private consumer (B2C) are in general taxable in the country of the supplier and therefore subject to Slovenian VAT.


The following exceptions apply to the B2B and B2C main rules as described above:


  • Services involving real estate (taxable in the country where the real estate is located).
  • catering services (taxable in the country where these services are performed. Other rules apply if these services are performed on board a ship, aircraft, or train).
  • Passenger transport (taxable in the country here the transport services are actually performed).
  • Services with regard to cultural, artistic, sporting, scientific, educational, entertainment, and similar activities, along with the ancillary services (taxable in the country where those activities are physically carried out). With effect from 1 January 2011, this exception has applied to services performed for VAT entrepreneurs only with respect to admission to the aforementioned events and the appurtenant admission-related services.
  • Short-term hiring of transportation vehicles (for ships maximum 90 days/for other means of transport maximum 30 days); taxable in the country where the vehicle is actually put at the disposal of the customer.

The following exceptions apply to the B2C main rule:


  • Intermediary services (taxable in the country where the underlying transaction is taxable).
  • Intra-Community transport of goods (taxable in the country of departure). For other types of goods transportation for non-taxable customers, the place of service is the place where the transportation is actually performed.
  • Transportation-related services (taxable in the country where the services are physically carried out).
  • Services involving movable tangible goods (taxable in the country where the activities are actually carried out).
  • Services performed electronically by a VAT entrepreneur not established in the EU to non-taxable customers (taxable in the country where the customer of the service is located).
  • The following services performed for non-taxable customers that are established or resident outside the EU are taxable in the country where the customer is established:
    • the transfer of licenses and similar rights
    • advertising services
    • services performed by consultants, as well as data-processing and information-provision services
    • the obligation to refrain, in whole or in part, from pursuing a business activity;
    • banking and insurance services
    • supply of staff
    • hiring out of movable property, with the exception of means of transport
    • operating natural gas and electricity-distribution systems
    • telecommunications services
    • radio and television broadcast services and
    • services performed electronically.

How are goods dealt with on importation?


When goods are imported into Slovenia, import VAT and customs duty may be due. This has to be paid or secured before the goods will be released for free circulation.


For import VAT exemption please refer to simplifications section described above.


How are services which are brought in from abroad treated for VAT purposes?


If businesses receive certain services from suppliers outside Slovenia, they will generally be required to account for the VAT in Slovenia. Under the reverse charge mechanism they are required to account for the VAT as output tax on their VAT return covering the period in which they received a service or have made a payment. The right to deduct input VAT shall arise at the time when VAT becomes chargeable. A taxable person must not deduct input VAT before the tax period in which it received invoices for goods or services supplied or in which it received customs declarations for imported goods.

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Invoices

Is a business required to issue tax invoices?


Yes.


What do businesses have to show on a tax invoice?


If businesses must issue a tax invoice it should contain the following data:


  • the date of issue
  • a sequential number which uniquely identifies the invoice
  • the VAT identification number under which the taxable person supplied the goods or services
  • the customer's VAT identification number under which the customer received a supply of goods or services in respect of which he is liable for payment of VAT, or received a supply of goods (intra-Community supply)
  • the full name and address of the taxable person and its customer
  • the quantity and nature of the goods supplied or the extent and nature of the services rendered
  • the date on which the supply of goods or services was made or completed or the date on which the (pre)payment on account was made before the supply of goods or before the supply of services was made, in so far as that date can be determined and differs from the date of issue of the invoice
  • the taxable amount per rate or exemption, the unit price exclusive of VAT, and any discounts and rebates if they are not included in the unit price
  • the VAT rate applied
  • the VAT amount payable, except where a specific arrangement is applied under which such a detail is excluded
  • the ‘self-invoicing’ indication if the invoice is issued by buyer of goods or services or on behalf and on the account for the taxable person
  • in the case of VAT exemption, a reference to the applicable provision of the VAT Directive 112/2006 or to the VAT Act or any other reference indicating that the supply of goods or services is exempt from VAT
  • In case the VAT payer is the buyer of goods or services, the ‘reverse charge’ indication
  • In the case of supply of a new means of transport, dispatched and transported from the territory of Slovenia to another Member State, by or on behalf of the vendor or the customer, for taxable persons or for a non-taxable person acting as such in that other Member State, or non-taxable legal persons whose Intra-Community acquisitions are not subject to VAT, to any other non-taxable person, the certain characteristics means of transport must be stated in the invoice.
  • In case of special regime for travel agencies, clause “special regime for travel agencies” must be stated
  • In case of special regime for used goods, works of art, collections and antiques, clause “special regime – used goods”, “special regime – works of art” or “special regime – collections and antiques” must be stated
  • In case the VAT payer is the fiscal representative, the VAT ID number, name and address of fiscal representative must be stated

Can businesses issue invoices electronically?


Yes, electronic invoicing is permitted provided authenticity and integrity of the invoice are assured.


Is it possible to operate self-billing?


Yes, self-billing is possible under following conditions:


  • Both parties agree on self-billing in advance;
  • Both parties specifically agree on the method of accepting each invoice;
  • Indication on the invoice that it is issued on behalf and for the account of the taxable person who supplied the goods or services to the buyer.

Can a business issue VAT invoices denominated in a foreign currency?


The amounts which appear on the invoice may be expressed in any currency, provided that the amount of VAT payable is expressed in EUR.

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Transfers of Business

Is there a relief from VAT for the sale of a business as a going concern?


VAT shall not be charged, levied, or paid on the transfer of a company or part of a company, which represents an economic whole to another taxable person. The purchaser should intend to use the assets to carry on the same kind of business.

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Options to Tax

Are there any options to tax transactions?


The lease of fixed property, transfer of real property (except partly-constructed property), and the transfer of buildings and their parts (under certain conditions) are generally exempt from taxation.


However, there is an option to tax these transactions if the lessor and lessee conclude a special statement and lodge it with the tax authorities. The aforementioned statement is feasible to prepare only in case that the buyer is entitled to deduct 100 percent of input VAT.

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Head Office and Branch transactions

How are transactions between head office and branch treated?


Transactions between head office and branch are not treated as a supply for VAT purposes (except supply of goods to other EU member state).

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Bad Debt

Are businesses able to claim relief for bad debts?


Yes.

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Anti-Avoidance

Is there a general anti-avoidance provision under VAT law?


There are no anti-avoidance provisions but some "transfer pricing" regulations are applicable under Slovenian VAT law.

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Penalty Regime

What is the penalty and interest regime like?


Individuals who commit an offense in connection with the independent performance of activities shall be subject to a monetary penalty. Legal persons shall be subject to a monetary penalty for violations if they:


  • fail to charge and levy VAT when the liability arises
  • fail to charge and levy VAT on the correct taxable amount
  • fail to state the prescribed information on an invoice
  • incorrectly calculate the amount of input VAT
  • fail to submit a VAT settlement or fail to submit it within the prescribed time limit
  • fail to report to the tax authority when their activity begins, changes, or ceases, etc.

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Tax authorities

Tax audits


How often do tax audits take place?


No special rule; the key for selection of tax reviews is confidential.


Are there audits done electronically in your country (e-audit)? If so, what system is in use?


Not yet; tax audits are usually held at client’s facilities or at the tax authorities, however for the purposes of usual tax control (not an audit), the tax authorities may request data electronically.


Advance rulings and decisions from the tax authority


Is it possible to apply for formal or informal advance rulings from the (indirect) tax authority?


Yes:


  • For official ruling, a special procedural rule is prescribed, also an administrative fee needs to be paid for this purposes. Such official ruling is binding for tax authorities.
  • Informal ruling are so called “tax opinions” on several cases brought up by tax payers to be resolved by the tax authorities. The informal rulings are not treated as a valid legal basis.

Are rulings and decisions issued by the tax authorities publicly available in your country?


Mostly yes, however, please note that informal rulings are not treated as a valid legal basis, but in general it is accepted.

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Miscellaneous

In your country, are there unique specific indirect tax rules (regimes) that differ from standard indirect tax rules in other jurisdictions?


No.


Are there indirect tax incentives available in your country (e.g. reduced rates, tax holidays)?


No.

 

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