Value added tax for your company in Slovenia, EU

Value added tax is a general, broadly based consumption tax assessed on the value added to goods or services. The abbreviation for the name is VAT. It applies predominantly for all goods and services that are bought and sold for use or consumption in the EU. In this article, we will be presenting value added tax in Slovenia so that you have this information when doing business in Europe.

Data d.o.o. has over 28 year of experience in helping entrepreneurs with business in Slovenia. In one place, we offer support for company registration and accounting services. Additionally, we also offer expert legal advice and service of virtual office.

Value added tax rates in Slovenia, EU

Slovenia has two VAT rates. The standard VAT rate is 22%, but there is also a lowered rate of 9,5%. The lowered VAT rate is possible for basic commodities like food and beverage products. Additionally, medicines, passenger transportation and certain types of accommodation also fall under this category. But the majority of goods and services have a 22% value added tax rate in Slovenia.

Does your company automatically become part of the VAT system?

After company registration in Slovenia, it does not automatically become a VAT payer and enter the VAT system. Your company will have to apply for a VAT number in case you surpass a limit of 50.000 EUR taxable income or will in the last 12 months.

You can also apply for a VAT number voluntarily. In this case, you would have to remain in the value added tax system at least 60 months. This can be a possibility if you plan to issue invoices to companies in other EU states.

What are the consequences for companies who enter the value added tax system?

If your company registers as a VAT payer, you would need to calculate the value added tax for a certain time period. Afterwards, you would also need to pay the calculated VAT to the government.

If you deal mostly with private individuals and do not surpass the 50.000€ threshold, it would mean that entering the VAT system would increase the price of your services at the prescribed rate.

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