Atypical VAT payer – does your company have to register?

If you are opening a company in Slovenia and plan to do business in Europe, your company might have to register as an atypical value added tax (VAT) payer.

Doing business in Slovenia and entering the VAT system

If you only plan on doing business in Slovenia and do not surpass the threshold of 50.000€ income in the last 12 months, your company does not have to be registered for VAT purposes.

But if you plan on issuing invoices to companies in other EU states, your company would have to enter the VAT system. The Law on Value Added Tax (ZDDV-1) states that the tax payer becomes any local or foreign legal entity that independently performs an economic business activity. It applies regardless if the company makes profit or loss. But not all companies have to enter the system for VAT calculation. Hence, not all companies have to obtain the ID number for VAT.

When does a company become an atypical VAT payer?

A Slovenian company can become an atypical VAT payer in three cases;

• if it surpasses the 10.000€ limit of purchasing goods within EU in the ongoing calendar year,
• when if receives services from a VAT payer from another EU country,
• if it performs services to a VAT payer in another EU country.

If the company sells goods or provides services to natural persons, this obligation does not apply.

For the last two cases, the amount of turnover does not matter.

When becoming an atypical VAT payer, you still will not calculate VAT for business you do in Slovenia. You will only calculate VAT in connection to receiving goods or services from VAT payers in other EU states. When selling goods or services you would not calculate VAT.

How does an atypical VAT payer issue invoices?

An atypical VAT payer has to issue invoices for services rendered to another EU state without the calculated Slovenian VAT. On the invoice, the atypical VAT payer lists its (Slovenian) ID number for VAT that it uses only for doing business abroad. It is also mandatory to include the ID number for VAT from the buyer of the service in the other EU state. You would not calculate Slovenian VAT but the invoice has to include a clause stating a reverse tax obligation, because the VAT is not calculated in accordance to the first paragraph of 25th article of ZDDV-1 law.

What kind of obligations does an atypical VAT payer have?

When registering in the VAT system, the atypical VAT payer has to report back to the tax office every month with VAT calculation. For the tax period, in which the company issued an invoice to another EU country, the company also has to present a recapitulation report. It is a report, where the atypical VAT payer shows the selling of goods or services to other EU countries. You would submit this report electronically through the online eDavki system.

But pay attention: when the atypical VAT payer with issued invoices (taxable turnover) in Slovenia surpasses the threshold 50.000€, the company has enter the VAT system. Again, you would have to submit the appropriate application. From the day the Slovenian tax office issues the decree, has to calculated the prescribed VAT to local buyers. In this case, there are no changes when doing business with other EU countries. The reverse tax obligation still applies.

Register a company in Slovenia with support of Data d.o.o.!

If you plan on offering your services in Slovenia, Data d.o.o. can support you through the processes surrounding company registration.

We can obtain help you to obtain the documents you need for company registration.

Also, you can register the company in our office, as we are a governmentally licensed VEM point.

Our legal department can assist you in preparing the application for becoming an atypical VAT payer. They can also explain the legislation regarding taxes in Slovenia.

Here at Data d.o.o. our professional accountants and tax specialists can help you understand the implications on being a VAT payer. They can also make sure that your company’s books are kept in order with the Slovene legislation and submit the VAT reports.

If your company needs a business address, we can also provide services of virtual office.

For more information on company registration in Slovenia, send us an e-mail to data@data.si. You can also contact us over the phone 00386 1 6006 270 or 00386 40 530 718 (Viber, WhatsApp). You can also follow us on Facebook.