Entry of the Slovenian company into VAT system

Entry of the Slovenian company into VAT system

When the owner opens a company in Slovenia, he is interested in a question whether or not to register company into VAT system? If your company is not in the VAT system, then you have no right to put VAT on the prices of your goods, write invoices with VAT or receive a VAT return.

There are several conditions, when a company must become a VAT payer:

  • If the amount of taxable turnover in the last 12 months (not tied to the calendar year!) is above 50.000 €;
  • If the value of goods purchased in other EU Member States is in total over 10.000 € per calendar year;
  • If you supply goods or services (irrespective of the volume) to legal entities in other EU countries. This condition does not apply if you are only working with individuals;
  • If the firm has acquired the goods in the EU and sold them to customers in Slovenia, who are not registered for VAT, in excess of 35.000 €. This condition applies only to companies opened by foreigners working in the field of distance sales (eg online store)

Voluntary registration of the company into VAT system

If you do not satisfy any of the above conditions, the entrepreneur himself can decide whether he will be registered in the system of VAT. Many things depend on the company and from clients with whom company works.  If your company is planning to work with other companies in the EU, the registration of a company into VAT system will be necessary. The same applies to the company that plans to conduct the sale to legal entities in Slovenia. If you work primarily with individuals, the registration will lead to higher prices for goods and services for consumers. It is also not recommended for companies that have low cost of acquisition (production) of goods and sell them with high added value.

Registration to the system is recommended to the companies whose activities are related to the high costs. There is a possibility of a situation that VAT, that company paid for goods and services from other companies, will be higher than VAT, that company accrued for its services and goods.

If you voluntarily register for VAT, you become a VAT payer for at least 5 years. If the company automatically becomes a VAT payer on one of the above conditions, it can get out of the system after 12 months, if you do not meet these conditions.

If a company, whose activities are subject to tax, did not provide or delayed a report to the tax authorities, it can be fined from 2.000 to 125.000 euros depending on the type of violation

In Data d.o.o. we can advise you about the registration to VAT system. If you need additional information do not hesitate to contact us via e-mail data@data.si or call +386 1 600 15 30 or +386 40 530 718 (Viber, WhatsApp).  You can also follow us on Facebook.

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