Complete Guide to VAT in Slovenia: Rates, Registration, & Compliance

VAT in Slovenia - Three Types of Rates

There are three types of VAT rates in Slovenia:

1. Standard VAT rate,

2. Reduced VAT rates, and

3. Zero VAT rate.

How Much is VAT in Slovenia’s Regions?

Slovenia VAT Law does not contain any specific provision on special VAT rates that apply to some regions. Therefore, standard, reduced, and zero Slovenia VAT rate are applicable throughout the country.

VAT Registration Threshold

VAT Slovenia Law and the official publication issued by the Slovenian Ministry of Finance and Financial Administration provide essential information on the VAT threshold in Slovenia. In addition, the Slovenian State Portal for Businesses Entity, or SPOT, also includes necessary information on all VAT-related matters.

Under VAT Slovenia legislation, the VAT threshold for resident taxable persons is EUR 50,000. In contrast, the same legislation does not define a VAT threshold for non-resident taxable persons.

As an EU Member State, Slovenia implemented EU-harmonized rules regarding the VAT registration threshold for intra-EU distance sales of goods and B2C supplies of services and non-EU suppliers of electronically supplied services. Therefore, the VAT registration threshold of EUR 10,000 for intra-EU distance sales of goods and B2C supplies of services is implemented into national VAT regulations. There is no threshold for non-EU suppliers of electronically supplied services.

Types of Taxable Activities in Slovenia

Under the Slovenia VAT Law, individuals or legal entities are considered taxable when they independently engage in economic activity, regardless of the purpose or result of such activities.

For VAT rules and regulations to become effective for taxable persons, they must either supply goods or services in Slovenia for a fee, receive reverse-charge services in Slovenia, and export or import goods.

VAT Registration Process

There is no VAT threshold in Slovenia for foreign-taxable persons, so the registration process for domestic and foreign-taxable persons, such as businesses, is slightly different.

Slovenia VAT Registration for Domestic Businesses

Once domestic businesses exceed the EUR 50,000 VAT registration threshold, they must register for VAT in Slovenia and electronically submit the Slovenia VAT registration form and the required documents.

If the registration requirements are fulfilled, the Finance Administration will issue the taxable individual a VAT number, which must be utilized in all business operations.

Slovenia VAT Registration for Foreign Businesses 

Foreign businesses must electronically submit a Request for issuing of VAT identification number, also known as form DDV-P3, at least 15 days before they intend to engage in taxable activities. In addition to the stated form, documents such as a certificate from the state's competent authority from the home country and a contract or preliminary contract or other evidence from which it is evident that foreign businesses intend to perform business activities in Slovenia.

While companies based in another EU country can complete this procedure without appointing a tax representative, non-EU companies must appoint one to complete the VAT registration process.

VAT Returns in Slovenia

In Slovenia, VAT returns are submitted monthly or quarterly by completing the DDV-O form. The VAT return must be submitted by the last business day of the month following the reporting period.

Even if no transactions subject to VAT were made in the reporting period, a VAT return still must be filed.

Penalties for Failure to File Tax Return

Individuals and businesses that breach VAT Law and do not respect their VAT filing obligations will be subject to penalties, contributing to financial and administrative burdens. For example, fines of between EUR 4,000 and 75,000 for small businesses and EUR 10,000 to EUR 125,000 for medium or large companies will be imposed when companies do not submit VAT returns on time or file incorrect or false VAT returns.

If sole proprietors or individuals do not comply with a VAT filing obligation, they might face a penalty of EUR 3,000 to EUR 50,000.

VAT Rules for Electronically Supplied Services 

Slovenia integrated the most relevant rules from the E-commerce package, which introduced and further defined principles regarding Electronically Supplied Services (ESS). Under the EU VAT Directive, a central part of the E-commerce reformatory packages, ESS are services provided automatically over the Internet with minimum human effort. Other digital networks can also make these supplies, but supply cannot rely heavily on human effort.

Therefore, Slovenia's national VAT legislation implements taxability rules under the EU VAT Directive.

Taxability Rules for ESS:

The 2021 reform of the EU VAT system introduced new rules and redefined some existing ones. The most relevant rules regarding ESS are those relating to B2B and B2C ESS transactions, VAT rules, distance sales of goods, and B2C ESS.

Regarding the B2B supply of ESS, EU-wide rules and those implemented into Slovenian VAT legislation define the general rules for the place of supply that should be used. For the B2C supply of ESS, the destination principle is used, and under that principle, the VAT rate applicable is the one that is in effect in the customer's country.

The EUR 10,000 threshold, established in 2021, is the most relevant regarding the applicable rules related to distance sales of goods and B2C ESS. Suppliers whose annual turnover is under the threshold can use the VAT rates defined by their national laws or register for OSS.

However, if the annual turnover exceeds the EUR 10,000 threshold, suppliers must apply the VAT rate following the destination principle, e.g. VAT rate Slovenia.

How much is VAT in Slovenia on ESS?

The Slovenia VAT rate for ESS is 22%.

E-Commerce Rules

The European Union made a significant impact by implementing the 2021 E-commerce reformatory package. It is critical to state that these changes and adjustments to e-commerce rules affected EU businesses and all businesses operating within the EU single market.

The EU reshaped the regulatory framework by introducing new rules and regulations and making necessary adjustments to existing ones. This facilitated VAT compliance and established a consistent EU VAT system.

One of the most notable novelties was the introduction of the EUR 150 threshold for cross-border sales of low-value goods. This change introduced a new threshold for goods imported from non-EU countries and eliminated the EUR 22 threshold.

Deemed supplier rules make online digital platform operators liable for VAT on sales they facilitate. By imposing the responsibility to charge, collect, and remit VAT on sales that they facilitate, the EU made necessary adjustments to its rules to tackle the challenges in a digital economy where online marketplaces and digital platforms have more power than ever.

To further simplify VAT reporting, the EU governing bodies enlarged the 2015 Mini One Stop Shop (MOSS) to the One Stop Shop (OSS). The enlargement involved further developing the existing Union and non-Union schemes and implementing completely new Import One Stop Shop (IOSS) schemes.

Therefore, the new OSS consists of three schemes:

• Union Scheme,

• Non-Union Scheme,

• Import Scheme.

VAT EU Reporting

In Slovenia, VAT-registered taxable persons must submit an EC Sales List, also known as Recapitulative Statements and Intrastat reports.

EC Sales List

VAT-registered individuals or businesses in Slovenia that engage in intra-EU supply of goods and services must submit an EC Sales List (ESL). As a type of tax declaration, ESL includes all relevant information on an in-scope transaction between two EU VAT-registered taxable persons, such as VAT numbers, addresses, quantity of supply, etc. ESLs must be filed by the 20th day of the month following the reporting month. 

Intrastat

For the Intrastat obligation to occur, taxable persons must exceed defined annual arrivals and dispatches thresholds. There are two types of thresholds. The first one is referred to as the Exemption threshold. The thresholds are EUR 220,000 for arrivals and EUR 270,000 for dispatches. Although called the Exemption threshold, once the threshold is exceeded, the obligation to file an Intrastat report emerges.

The second threshold is called Statistical Value Threshold, and it is set at EUR 4 million for arrivals and EUR 9 million for dispatches. Once these thresholds are exceeded, a more detailed Intrastat statistical report will be required.

Digital Reporting

Regarding the digital reporting requirements in Slovenia, taxable persons only need to meet certain e-invoicing obligations.

Local Businesses

Local taxable persons, such as businesses, must meet B2G e-invoicing requirements. This means that all transactions with the government and public bodies must go through the government B2G e-invoicing system.

Non-Resident Businesses

The same mandatory B2G e-invoicing rules applicable to domestic businesses apply to foreign ones.