EU VAT Guide – Slovenia

How much is VAT in Slovenia? 

The Standard VAT Rate ((”Davek na dodano vrednost” (DDV)) in Slovenia is 22%. 

Some supplies are exempt from VAT. This applies to business activities like education, health care, insurance, and banking services.

The exact list of taxable transactions and allocated Slovenia VAT rate can be found in VAT Slovenia regulations. 

VAT thresholds in Slovenia 

Valuable information about the VAT threshold in Slovenia and applicable provisions can be found in the VAT legislation. Also, a helpful source of information is an interpretation of the appropriate information shared by Tax Authority officials. 

VAT registration threshold for resident businesses: Threshold of EUR 50,000.

VAT registration threshold for non-resident businesses: No registration threshold.

VAT registration threshold for intra-EU distance sales of goods and B2C supplies of services: EU-wide harmonized threshold of EUR 10,000.

VAT registration threshold for non-EU established suppliers of Electronically Supplied Services: No registration threshold.

VAT Taxable Activities in Slovenia

A taxable person by Slovenia VAT Law is a legal person or individual who carries out economic activity independently, whatever the purpose or results. 

Types of taxable activities that trigger the imposition of Slovenia VAT: 

• The supply of goods and rendering of services in Slovenia for consideration;
• Receipt of reverse-charge services by a taxable person in Slovenia;
• Export of goods;
• Import of goods.

Other case scenarios exist where domestic or foreign businesses should impose Slovenia VAT on their transactions. 

Tax Representative in Slovenia 

For non-EU-established businesses, having a tax representative for all VAT compliance-related activities is mandatory. 

For EU-established businesses, having a tax intermediary isn’t compulsory. Still, the economic operator could acquire the professional to ease up and streamline compliance challenges for its operations in the country. 

VAT on Electronically Supplied Services in Slovenia 

Electronically Supplied Services 

In alignment with the European Union’s strategy of adopting the E-commerce package, Slovenia has successfully integrated the core principles governing Electronically Supplied Services, as stipulated by the EU VAT Directive, into its national legislation. 

Slovenia established a strong foundation for applying uniform tax regulations across the digital economy by adopting the updates of the EU’s VAT legislative acts. This initiative ensures that electronic services, digital services, and digital products are treated with a consistent tax approach. 

This initiative underlines Slovenia’s commitment to harmonizing its tax rules with the broader European Union, promoting a more straightforward and unified tax system for the digital sector.

Taxability Rules for ESS

The adoption of the E-commerce regulatory package in July 2021 stressed the importance of establishing common ground EU VAT-based rules for the cross-border distance sales of goods and services. 

This legislative initiative set forth uniform VAT rules across the single market for Electronically Supplied Services (ESS) and distance sales of goods, ensuring consistency and fairness in taxation within the digital and physical goods sectors.

Taxability rules stemming from the E-Commerce package:

• B2B Transactions for Electronically Supplied Services: In transactions where a buyer is a taxable person, general rules for the place of supply should be used;
• B2C Transactions for Electronically Supplied Services by Non-Resident Companies: Businesses outside the country must adhere to EU-specific VAT regulations, primarily using the VAT rate prevalent in the customer’s country, streamlining tax collection and compliance;
• B2C Transactions for Electronically Supplied Services by Non-EU Suppliers: Suppliers based outside the EU must comply with EU standards for determining the place of supply without possibly leveraging the instituted threshold of the EUR 10,000;
• VAT Rules for Distance Sales of Goods and B2C ESS: EU-based suppliers generating less than EUR 10,000 annually from distance sales of goods and/ or B2C ESS can opt between applying the VAT rules of their home country or adhering to the One-Stop Shop (OSS) rules, offering flexibility for smaller enterprises;
• VAT Rules for Distance Sales of Goods and B2C ESS: For annual turnovers exceeding EUR 10,000, suppliers must apply the VAT rate attributable to the place of residence of the customer.  Aligning the applicable tax rules with the place of consumption and ensuring VAT is levied where economic activity occurs.

This uniformity in VAT regulations simplifies the compliance process for businesses operating within the European Union and extends its benefits to international entities engaging with the EU market. 

How much is VAT in Slovenia for Electronically Supplied Services?

VAT rate Slovenia: A standard VAT rate of 23% is applied in most cases on sales of Electronically Supplied Services in Slovenia.

E-Commerce VAT Rules in Slovenia 

On July 1, 2021, European Union authorities took a necessary step in refining VAT regulations to adjust to the fast-growing demands of the digital economy. This reform was driven by two primary objectives: to ease the complexities faced by businesses in cross-border transactions and to establish a consistent tax framework for e-commerce activities across the EU.

Important Aspects of the 2021 E-Commerce VAT Reforms:

• Cross-Border Sales of Low-Value Goods: The reforms introduce a unified taxation framework for the importation of low-value goods by EU customers from non-EU territories, guaranteeing in this manner the transparency.
• Intra-Community Distance Sales: Removal of Member State-based thresholds that caused fragmentation and serious challenges for businesses operating outside their borders. 
• Domestic Sales by Deemed Suppliers: The reforms address sales executed entirely within one Member State, defining transactions where both the deemed supplier and the customer are located in the same country, clarifying the VAT responsibilities in such scenarios.
• Provision of B2C Services: Expansion of the scope of cross-border services provided to EU-based residents that could be reported under OSS schemes. 

These reforms accent the advancements made in the EU’s approach to combat the challenges stemming from the operations handled by the businesses that are part of the digital economy ecosystem. 

Simplification of VAT rules for E-Commerce:

This long-waited reform was not limited to mere updates; it encompassed a comprehensive revision of existing VAT mechanisms and introduced the Import One Stop Shop (IOSS) scheme. 

The evolution of these VAT special schemes, including enhancing the IOSS, marks a crucial development in the EU’s approach to e-commerce taxation. It simplifies the often daunting task of navigating VAT obligations for enterprises, fostering a more accessible and uniform e-commerce environment.

The E-Commerce VAT package made the following special schemes available:

• Union One-Stop-Shop Scheme;

• Non-Union One-Stop-Scheme;

• Import One-Stop-Shop Scheme.

Overview of EU VAT Special Schemes

Non-Union Scheme can be leveraged by

This scheme is specifically designed for businesses established outside the EU or those operating within the EU without a fixed establishment. Non-EU-based suppliers can adhere to this scheme and use it as a simplified tool to report all their B2C supplies of services – that are within the predefined scope. 

Union Scheme can be leveraged by:

• EU-based businesses: Taxable entities within the EU offering B2C services or engaging in intra-community distance sales of goods can benefit from the Union Scheme. The critical parameter for benefiting from this scheme is offering services or goods to customers in different Member States from where the supplier is established.
• Non-EU Based Businesses on Intra-Community Sales: Businesses not based in the EU are also eligible to use the Union Scheme specifically for intra-community distance sales of goods.
• Digital Marketplaces: Whether based in the EU or not, digital marketplaces facilitating intra-community distance sales of goods and certain domestic supplies can leverage the Union Scheme. 

These schemes, part of the broader VAT regulatory framework, aim to accommodate the diverse structures of businesses engaging in the digital single market, ensuring VAT compliance is manageable and consistent across the European Union.

Import Scheme can be leveraged by:

Any taxable person who carries out distance sales of goods imported from third countries or third territories in consignments not exceeding the threshold of EUR 150 

Taxable persons established in the EU, taxable persons non-established in the EU, and electronic marketplaces are eligible to use this type of special scheme. 

OSS Return and Payment 

The Slovenian tax rules don’t provide a simplified registration or reporting approach tailored explicitly to suppliers of Electronically Supplied Services. Nonetheless, businesses can engage with the EU-wide One-Stop Shop (OSS) schemes, simplifying VAT obligations on a broader scale.

These schemes are designed to simplify things for businesses participating in the cross-border EU supply. The scope of the schemes covers a wide array of services and distance sales of goods. 

When foreign businesses cannot profit from the OSS schemes for supplies carried out to buyers residing in Slovenia, they need to follow the national registration and reporting rules. 

Electronic Platform and Deemed Supplier Rules 

In line with the European Union’s initiative to ease compliance challenges for reporting VAT for cross-border B2C transactions, Slovenia has integrated the EU’s VAT policies into its domestic legislation. This move has facilitated the implementation of the “deemed supplier” concept, streamlining the tax framework for certain e-commerce activities.

When the established criteria are reached, the digital platform operator, which facilitates the distance supply of goods, becomes the “deemed supplier” for the underlying transaction from a VAT perspective.

Critical scenarios where the marketplace facilitator is recognized as the deemed supplier include:

• The importation of goods priced under EUR 150 from non-EU countries or territories into the EU, which are then sold directly to EU consumers by the initial suppliers.
• The sale of goods already located within the EU and offered to MS customers by vendors residents in non-EU countries without any threshold regarding the value of goods.

This integration underscores Slovenia’s commitment to aligning with EU VAT regulations, enhancing the clarity and consistency of tax rules for digital commerce transactions.

This regulatory framework introduces additional responsibilities for deemed suppliers, vastly changing this sales model’s VAT obligations for taxable entities. In this multi-sided business model, we have two separate transactions: 

1. The initial supply from the original vendor to the digital platform is recognized as a business-to-business (B2B) transaction.
2. The subsequent supply from the platform to the final consumer is classified as a business-to-consumer (B2C) transaction.

This ensures compliance and facilitates smoother operations under the simplified tax framework provided by the EU.

Invoice Requirements in Slovenia 

General invoice information:

• Date of invoice issuance;
• Date of the supply of goods or provision of services;
• Unique invoice number.

Seller information:

• Company name;
• Full address(head office);
• Billing address if different from company address;
•  VAT number.

Customer information:

• Name;
• Full address;
• VAT number;
• Delivery address;
• The billing address is different from the delivery address.

Fiscal Information:

• Description and breakdown of the goods or services – quantity, discounts, unit price excl. VAT;
• Net amount;
• The VAT rate(s) applied and the breakdown of VAT per rate;
• Invoice Total.

Additional information required in particular cases:

• Exemption reference – guaranteed by precise norm;
• Reverse charge – term if applicable;
• Self-billing – term if applicable;
• Tax Representative information for non-resident business.

Foreign Currency Invoice in Slovenia  

In Slovenia, it’s permissible to issue tax invoices in foreign currencies, but the VAT amount on the invoice must be shown in EUR. 

VAT Return in Slovenia 

Domestic returns

Domestic taxpayers and non-established foreign businesses who conduct business under the national VAT Slovenia rules should submit monthly or quarterly declarations depending on their turnover. 

Penalties for late reporting and omitted declarations 

Taxpayers should charge Slovenia VAT on their transactions when the responsibility rises and submit the VAT return. If they do the return fillings after the deadline, they can expect to allocate more funds than they would if they had filled the return within the permitted timeframe. 

If a taxpayer fails to submit a VAT return to the tax authority or fails to submit a VAT return within the prescribed period, fails to submit a VAT return in the prescribed manner, or provides incomplete, incorrect, or untrue data or information in the submitted VAT return, he shall be punished for the offense:

• a fine of between EUR 4,000 and EUR 75,000 for a legal person and between EUR 10,000 and EUR 125,000 for a legal person that is considered a medium-sized or large company.
• a fine of between EUR 3,000 and EUR 50,000 for a sole proprietor or an individual engaged in an activity on his own account.
• a fine of between EUR 400 and EUR 5,000 shall be imposed on the individual who commits the offense.

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