Value added tax or VAT in Slovenia is ranked among the taxes on consumption and it is considered an indirect tax on goods and services, which is paid at each stage of production and distribution chain. In Slovenia there are two VAT rates, a regular one of 22% and a reduced rate of 9,5% for certain goods and services, which will also be presented in the article below.
VAT in Slovenia shall be payable by any taxable person making a taxable supply of goods or services, except in cases in which, in accordance with the VAT Act 1, the VAT is charged to another person. VAT in Slovenia must also be paid by any person who enters the VAT on the invoice.
The taxable person shall pay the VAT in Slovenia to the state budget no later than the last working day of the month following the expiration of the tax period, unless otherwise provided by law.
In Slovenia, a taxable person identified for VAT purpose must have obtained a VAT identification number and must have fulfilled at least one of the conditions:
- a taxable turnover exceeding EUR 50,000 in the last 12 months
- is a taxpayer that supplies goods and services in the context of basic agricultural and forestry activities, as defined by the Income Tax Regulations, with an amount of EUR 7,500 euros as total income of these activities in the context of rural household for the last calendar year;
- is a taxable person within the territory of Slovenia and have made acquisition of goods due to certain transactions that are related to the provision of activities outside Slovenia;
- is taxable or a non-taxable person that has acquired goods within the EU in a total amount that has exceeded EUR 10,000 during the current calendar year
- is a taxable person who is established in Slovenia, but provides services in the territory of another Member State in which he is a VAT payer in accordance with the Article no. 196 of Directive 2006/112/EC.
There are also certain categories that are not charged with VAT in Slovenia, for example government bodies, organizations, a local union as well as other public entity that perform an activity or transaction as a public authority, even if they collect fees, levies and other charges and payments in connection with these activities or transactions.
There are also other categories that are exempted from VAT purpose in Slovenia, such as: certain activities in the public interest (health, social care, education, religious, sport and physical education, culture, the universal postal service), insurance and reinsurance transactions, leasing of real estate, financial services, supply of stamps and postage stamps, supply of buildings or parts of buildings and land other than new construction, the supply of gold to the Bank of Slovenia.
The reduced rate of VAT (9,5%) is applied for certain categories of goods and services, such as:
- food, live animals, seeds, plants and materials intended for food preparation;
- water supply;
- medicines, including birth control products and products for hygienic protection;
- medical equipment, aids and other assets, which are intended to alleviate or treat an injury or handicap, intended only for personal use;
- carriage of passengers and their personal baggage;
- books, brochures, leaflets and similar printed products, newspapers and periodicals, other than material which is wholly or predominantly devoted to advertising;
- taxes for exhibitions, theaters, cinema and music events, parks, zoos and similar cultural and sporting events;
- copyright writers and composers and performing artists services;
- housing and other facilities intended for permanent residence, as well as parts of these structures, if they are part of social policy, including the construction, renovation and repair;
- animals for fattening, seeds, seedlings, fertilizers, plant protection products, biotic plant protection products and services, which are intended exclusively for agricultural use;
- forestry and fisheries;
- giving accommodation to rent in hotels and similar accommodation;
- domestic care services (such as home help and care of young, elderly, sick or disabled);
- other services or products provided by the law.
Every taxable person identified for VAT purposes in Slovenia is entitled to benefit from VAT deduction on the basis of certain rulings. Deductible VAT are those amounts of tax that are recognized in the accounts on the purchase of goods or service. The right to deduct VAT is given to a taxable person only for the purchase of goods and services which are used for the purposes of his taxable transactions and are legally exempted specific transactions.
The Act no.1 for VAT sets out the conditions for the exercise of the right to deduct VAT, the restrictions on this right, as well as obligations and methods of correction.
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