Deduction of VAT in Slovenia – possibilities and options

Deduction of VAT in Slovenia - possibilities and options

The possibilities of VAT deduction are very important for entrepreneurs who do business in Europe. VAT deduction is the right of VAT payers that have a valid ID number for VAT. Sometimes entrepreneurs are not quite clear when the deduction is possible and when impossible.

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What does VAT deduction mean?

VAT means value added tax. VAT deduction means that the company can decrease its tax obligation to pay VAT for the VAT amount that they already paid or the suppliers in Slovenia have charged them. The VAT payer can deduct the VAT if they fulfill all of the following conditions:

  • an obligation to calculate VAT has arisen,
  • you have an invoice or other relevant document,
  • the goods or services on which VAT has been charged have been used for transactions that are a subject of VAT or those which give rise to a right to deduct VAT (e.g. if a company is engaged in an insurance business, it is exempt from VAT and therefore has no right for the deduction).

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When is VAT deduction not possible?

What are the restrictions and prohibitions on VAT deduction? In certain cases, you cannot calculate or take into account the paid VAT of suppliers in order to decrease your liability to pay your calculated VAT.

VAT deduction with VAT payers is not possible in the following cases:

  • for vessels and vehicles, unless you procure them for resale or for hire / rental, driving lessons, transport of goods or passengers ,
  • fuels, lubricants and spare parts and services related to vessels and vehicles referred to in the previous point,
  • entertainment of business partners (business lunch, etc.),
  • food and drink and accommodation.

However, there may be a subsequent change in the purpose of use of the goods or services, or a change in the activity of the taxpayer. In this case, the VAT deduction must be adjusted (increased or decreased) accordingly. We also know the partial deduction of VAT. Taxpayers who carry out both a taxable activity and an exempt activity are entitled to the latter.

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Start a business in Slovenia and offer your services in the EU! DATA can offer full support!

The first step to start a business in Slovenia is to register a company here. Non-EU citizens can register an LTD company in Slovenia with 7500€ share capital. Do not miss the unique opportunity to learn about VAT deduction, company registration and business immigration to Slovenia. DATA can offer you full support in the consultation and the company registration. Also, you can contact us for more information. Send us an email to You can also call us on +386 1 6006 270, Viber/Whatsapp +386 40 530 718 or skype data.business7.


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