VAT Registration in Slovenia - 2023 Guide
VAT Registration in Slovenia
Updated on Tuesday 28th March 2023 Rate this article
based on 5 reviews.
based on 5 reviews.
VAT registration in Slovenia is a service that can be offered by our team of Slovenian lawyers, who have an in-depth experience in any tax matters and tax services that can be provided to foreign investors who want to start a business here.
Our lawyers can represent businessmen in the process of VAT registration in Slovenia by addressing to the local institutions, preparing the documentation required by the institutions, obtaining the necessary papers a company needs, etc.
The 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 types of VAT rates, a regular one of 22% and reduced rates, one of them applied at a rate of 9,5% for certain goods and services, which will also be presented in the article below.
| Quick Facts | |
|---|---|
| We offer VAT registration services | Yes |
| Standard rate | 22% |
| Lower rates | - 9.5% for a wide range of products and services, such as foodstuffs, domestic passenger transport, waste collection, use of sport facilities and sporting events, hotel accommodation, etc., - 5% implemented since 1st of January 2020 for e-books and printed books, - 0% for intra-community transportation. |
| Who needs VAT registration in Slovenia | Companies having the annual turnover above EUR 50,000 |
| Time frame for registration in Slovenia | Approximately 15 days |
| VAT for real estate transactions | 22% (charged for buildings bought by first occupants) |
| Exemptions available on VAT registration in Slovenia | For: - certain agricultural and forestry activities, - property transactions that have already had a previous owner, etc. |
| Period for filing | It depends on the type of return: - for local businesses, it can be the last working day of the period end (which can be monthly or quarterly). - for EC listings companies (companies registered in the EU that must report VAT on sales in the EU and that need to submit the EC Sales List) - the 20th of the month |
| VAT returns support | Yes |
| VAT refund | Available for both individuals and companies that are not residents in Slovenia |
| Local tax agent required | Yes (mandatory for third country companies) |
| Who collects the VAT | The Financial Administration |
| Documents for VAT registration in Slovenia | - a copy of the company's extract issued by the Trade Register, - a document presenting the activities that are carried out by the company, - the identity documents of the person representing the company |
| VAT number format | Country Code + 8 digits (SI 12345678) |
Does a foreign company need a Slovenian VAT number?
Yes, according to the tax legislation applicable in Slovenia, foreign companies have to obtain a Slovenian VAT number if they perform business activities that are charged with the VAT on the country’s territory.
Our team of Slovenian lawyers can advise businessmen on how to obtain a local VAT number as a foreign entity; a short presentation on VAT registration in Slovenia can be read below:
- the requirement is available for foreign online businesses selling goods on the internet to the Slovenian citizens;
- the VAT registration in Slovenia is compulsory in this case when the value of the goods sold on the Slovenian market is of minimum EUR 35,000 per year;
- as a non-resident company in Slovenia, the legal entity has to apply for a non-resident tax ID number;
- the registration can be done by submitting specific company documents;
- an extract from the Trade Registry where the company was incorporated is needed;
- the passport copies of the persons representing the company are also required.
How can a foreign company obtain a VAT number in Slovenia?
As mentioned above, foreign companies have to apply for a VAT number in certain conditions. For this, they need to obtain a non-resident tax ID number, which will allow them to have a Slovenian VAT number.
The application for VAT registration in Slovenia must be submitted with certain corporate documents, along with the Form DR-04. Foreign legal entities must submit the following papers:
- an extract obtained from the Trade Register operating in the country where the company has its tax residency;
- the identity documents of the person who represents the foreign company (the passport);
- information on the economic activities that will be carried out in Slovenia.
By completing this procedure, the foreign company will obtain the non-resident tax number issued by the Slovenian authorities, which will then allow for the issuance of the VAT number.
According to the State Tax Portal, the need to complete the Form DR-04 is imposed to the following types of foreign entities:
- legal entities;
- associations of persons without a legal personality, that are governed by foreign law;
- other types of persons that have to be registered with the Business Register of Slovenia, as per the Slovenian law;
- persons who are not established/registered in Slovenia.
It is necessary to know that all entities that must register for taxation in Slovenia will not have to pay a fee for this procedure. However, in the case in which they fail to register, various sanctions will be applied.
For instance, legal entities can be charged with sanctions of minimum EUR 1,200 to maximum EUR 15,000 if they do not register for taxation.
After this, the foreign company can start the procedure of VAT registration in Slovenia, by submitting the Form DDV-P3. Together with this form, the foreign company should present the following as well:
- the company’s VAT certificate, issued by the tax institutions of the country where the company is a tax resident;
- documents presenting the business operations to be carried out in Slovenia.
Please mind that the legal procedures for VAT registration in Slovenia distinguish between 2 types of foreign companies:
- foreign companies registered in countries that are member-states of the European Union (EU);
- foreign companies registered in non-EU countries.
Companies which are registered outside the EU must first register their business activities in Slovenia, and this applies regardless of the business form under which such companies operate.
It also includes the branch office. For companies registered in the EU, the Slovenian law does not require the registration of activities, but all foreign companies will need to apply for a tax identification number issued by the Slovenian tax authorities, regardless of the tax residency of the applicant.
The obligation to register for VAT purposes is imposed even when the foreign company will develop its activity for a limited period of time or only occasionally.
Please mind that foreign companies do not have to register a new legal entity in Slovenia. With regards to the VAT registration in Slovenia of foreign companies, new rules were enacted in 2022, as presented below:
- new regulations became applicable for foreign companies starting with 22 January 2022;
- starting with this date, Slovenia applies the Article 194 of the EU VAT Directive;
- the article refers to the implementation of the reverse VAT charge mechanism;
- by this, the VAT liability is passed on from the supplier to the customer, as long as the supplier is a non-established business that made a domestic supply of goods or services;
- the Article also provides exemptions on the VAT registration in Slovenia for foreign entities, as long as they supply only to Slovenian customers who are subject to the reverse VAT system.
Please mind that companies trading goods on the Slovenian market can be required to pay not only the VAT for the products sold here, but also excise taxes, which are charged to specific types of products.
In 2023, the excise tax on the sale of cigarettes is of minimum EUR 78 per 1,000 pieces, but it can go up to EUR 120 per 1,000 pieces. Excise tax is also applied in 2023 to beer, which is charged at EUR 12.10 per 1 volume of alchool in 1 hectoliter.
A fixed excise tax is charged to other alcoholic beverages at EUR 132 per 1 hectoliter (with the exception of wine). Excise tax in Slovenia is also charged for the supply of natural gas, heating oil and electricity, as well as to unleaded petrol.
VAT registration in Slovenia - obligations for Slovenian companies
VAT in Slovenia is 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. The Slovenian VAT is also payable in the moment when it is introduced on an 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.
Slovenian businesses are required to register for VAT by submitting a form on the online platform of the Tax Administration Office. Companies can also use the eTax system or the Slovenian Business Point Portal. After the application is submitted, the institutions will review the file and issue the VAT number and the VAT certificate.
In Slovenia, a taxable person identified for VAT purposes must have obtained a VAT identification number and must have fulfilled at least one of the conditions:
- has 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 as total income on these activities in the context of rural household for the last calendar year;
- is a 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 on the territory of another Member State in which he/she is a VAT payer in accordance with the Article no. 196 of Directive 2006/112/EC;
- is a foreign online business selling goods on the internet in Slovenia, with a value of EUR 35,000 per year.
The VAT registration in Slovenia is also necessary in the situation in which the entity is a taxable person within the territory of Slovenia and has made an acquisition of goods due to certain transactions that are related to the provision of activities outside this country.
Our team of Slovenian lawyers can provide more details on the legislation referring to this matter.
Please note that the local legislation also allows taxable entities to conclude the procedure for VAT registration in Slovenia prior to reaching the thresholds that are associated with their given category.
The procedure can be completed on a voluntary basis, through an application that can be submitted with the tax authorities even from the moment when the Slovenian company was incorporated here.
Mandatory VAT registration in Slovenia for local and foreign companies
Foreign businesses interested in trading in Slovenia can become liable for the payment of this tax in a wide category of situations. Those who are not sure if their business activity has to be charged for VAT in Slovenia can request legal assistance on this matter from our team of Slovenian lawyers.
However, some of the most common scenarios are presented below:
- businesses importing goods into Slovenia from outside the EU community;
- trading goods in Slovenia (purchasing and selling various products on the country’s territory);
- the sale of goods from Slovenia to buyers from outside the country;
- purchasing goods in Slovenia from another EU member state;
- organizing events in Slovenia where the participants have to pay an admission fee.
The tax can also be imposed when storing goods in Slovenia which are kept for the purpose of being sold, distributed on the local market or which are held as consignment. Our law firm in Slovenia can provide additional details on other situations that can be liable to the payment of this tax.
It is necessary to know that there are several categories of goods which do not allow a VAT refund; our team of Slovenian lawyers can present the detailed list of the goods that are included into this category and can also present what types of businesses are allowed to claim VAT refunds in Slovenia.
As a general rule, the VAT refunds are available for businesses located outside the EU, but this principle is available as long as the tax authorities in the respective non-EU countries have prescribed similar regulations for the VAT refund applicable to businesses incorporated in Slovenia.
What is the Slovenian VAT number?
The Slovenian VAT number is comprised on the country code SI, designating Slovenia, followed by a code comprised of 8 digits.
The company applying for a VAT number in Slovenia has to submit the necessary papers with at least 15 days prior to starting its business activities in this country. The structure of the VAT number resembles with the one of the Slovenian EORI number.
In the case of EU businesses that need a VAT number in Slovenia the local law does not prescribe the obligation to appoint a local fiscal representative, but it is recommended to have a local agent who can represent the company in relation with the local tax institutions (for matters such as tax inspections or the verification of the company’s books).
However, non-EU companies are obliged to have a fiscal representative in this country. For other legal matters that can appear for those interested in immigration to Slovenia or who will develop business activities, our lawyers remain at your assistance.
However, it is important to know that Slovenia also applies other reduced VAT rates and companies can be charged with the respective rates if they trade the goods and services included in these categories.
With regards to the VAT registration in Slovenia, the taxpayers should know that the following are applicable, as per the tax legislation available in this country:
- the standard VAT rate, of 22%, is charged to most of the goods and services traded on the Slovenian market;
- the reduced VAT rate, of 9,5%, is applicable to a wide range of goods, such as pharmaceutical products, foodstuffs or books and to various services, such as the hotel accommodation or restaurant services;
- another reduced VAT available here is charged at a rate of 5% and it is available only for the sale of e-books;
- Slovenia applies a VAT rate of 0%, which is applicable only for intra-community and international transportation (which does not include road transportation);
- in the case of businesses registered in the EU which sell goods on the internet, the procedure for VAT registration in Slovenia is mandatory once the sale reaches a threshold of minimum EUR 35,000 (calculated on the annual sales).
Our team of lawyers in Slovenia can assist businessmen with in-depth information on the Slovenian VAT rates and can also provide legal representation for local businesses that have to register for VAT purposes, a procedure which requires the issuance of a VAT number.
Our lawyers can also offer assistance on the VAT returns that have to be submitted with the local tax institutions.
VAT exemptions in Slovenia in 2023
There are also certain categories that are not charged with VAT in Slovenia, for example government bodies, organizations, local unions as well as other public entities 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 registration 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.
If you want to relocate here and you want to know if you can benefit from tax exemptions, our immigration lawyers in Slovenia can offer further assistance.
Due to the harsh effects the economy had to suffer as a consequence of the measures taken to reduce the effects of the Covid-19 pandemics, the Slovenian government has provided various tax reliefs or deductions to local businesses.
Amongst them, throughout 2020 the local government provided the right to submit VAT returns later than the deadline established under the local law, without imposing penalties or charges for the delay.
In 2021 and 2022, companies can benefit from a special VAT payment plan. The law will be applicable for companies until the end of 2022.
Reduced VAT rate in 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.
It also applies to medical equipment, aids and other assets, which are intended to alleviate or treat an injury or handicap, intended only for personal use. The reduced VAT rate is available for the following as well:
- the 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;
- services provided by 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 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, accommodation, domestic care services (such as home help and care of young, elderly, sick or disabled) and it can also refer to 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 services.
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.
What are the obligations when submitting VAT returns in Slovenia?
Once the company is issued with the VAT number in Slovenia, it can start trading. This leads to the obligation of submitting VAT returns following the applicable accounting regulations and this has to be done based on the nature of the VAT payer (natural person or legal entity).
The VAT returns have to be completed as requested by the Financial Administration of Slovenia, the main institution which handles tax matters in this country. The tax returns in Slovenia can be submitted on the online platform of the institution, free of charge.
Provided that the VAT payers did not submit in due time the required documents, they can face various penalties.
The penalties can range from EUR 2,000 to EUR 125,000, regardless of the nature of the VAT payer (natural person, legal entity, sole trader) if the documents were not completed as required by the tax law available here or if they were not submitted in the given amount of time.
Please note that the Slovenian tax law also allows local institutions to charge interest for late payments, which is imposed at 0,0247% on the due amount; the interest is calculated as a daily rate.
The VAT registration in Slovenia will create the obligation to pay taxes accordingly. In this sense, the local legislation requires taxable entities to pay VAT on the net amount obtained in a financial year.
This has to be calculated when submitting the VAT returns. Our team of lawyers in Slovenia can present more information on the tax assessment procedures and other accounting requirements imposed to businesses or natural persons.
Foreigners relocating here can address to our immigration lawyers in Slovenia if they want to know more on any tax obligation arrising from living here. So, if you are interested in immigration to Slovenia on a long-term basis, you should be aware on the taxes charged here.
According to the law on immigration to Slovenia, a person will have to apply for a temporary residence permit in the case in which he or she will stay here for minimum 90 days in a period of 180 days.
This will also have tax implications, as persons who will stay here generally work in this country and thus, will have to pay taxes here. The same rule applies for any other taxable activity.
Please mind that persons who live in Slovenia must pay personal income taxes and other types of taxes, depending on what their taxable activities are.
For instance, those who will apply for Slovenian citizenship and those who will become permanent residents will have to pay taxes accordingly to their income, which is regulated by the Personal Income Tax Act (there are 5 tax bases).
Thus, a person who has residency in Slovenia (issued as a permanent residency), will need to pay personal income taxes, for the following income thresholds: EUR 0 – EUR 8,755, EUR 8,755 – EUR 25,750, EUR 25,750 – EUR 51,500, EUR 51,500 – EUR 74,160, above EUR 74,160 (these thresholds refer to the annual income of the person).
The tax rate varies from 16% to 45%.
In Slovenia, the tax returns can be submitted on a monthly or a quarterly basis. The manner in which a taxable entity must submit the VAT returns is determined based on the yearly taxable amount.
Thus, in the case of those that have an yearly revenue of up to EUR 210,000, the tax returns can be completed on a quarterly basis. Those with revenues of more than EUR 210,000 should prepare monthly tax returns.
Are there any VAT requirements for natural persons in Slovenia?
Yes, natural persons can also be charged with the VAT if they develop taxable activities that fall under the regulations of the VAT law. This is also applicable to foreigners living in Slovenia.
Thus, it is necessary to know that a foreign natural person can become a taxable entity in Slovenia if he or she will reside in this country for a period longer than 183 days (calculated in a calendar year).
When this time period is met, the person has the legal obligation to fill in a questionnaire with the local tax authorities, which will determine, based on the information provided, if the person is liable for taxation in this country and for which types of taxes.
The tax authorities will also determine if the person’s tax residence can be established in Slovenia and if so, the person should announce the tax authorities in the country of residence on the modification.
This procedure should be completed with the purpose of avoiding the need to pay the same taxes for the same income in two different countries.
The procedures can depend on the country of residence, as different tax agreements can be signed; our law firm in Slovenia can offer an extensive presentation on the tax agreements that were signed by the local authorities.
Natural persons who have to register for VAT in Slovenia must first obtain a VAT identification number.
The request for the issuance of a VAT number in Slovenia can be done by using the online platform of the Slovenian tax institutions (the eTax system or the e-Vem portals are available for this) or by going in person to the tax office located in the region where the person resides.
The Act no.1 on 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.
For more details, you may contact our law firm in Slovenia. Our team of Slovenian lawyers can provide any additional information on other aspects related to the payment of the VAT.
