Financial services tax in Slovenia is not the same as VAT
Financial services tax in Slovenia is a special tax which came into force in 2013. Most of the financial sector has to pay it. Financial services are not taxed with VAT. So in a way, this tax replaces VAT for these services. In special cases, also a sole trader or company has to pay this tax as well. It happens when he or she receives a payment connected to financial services.
What are financial services?
Understanding taxation is important when you are doing business in Slovenia. You do not have to pay VAT on financial transactions. The Law on Value Added Tax states this. Financial services are:
- giving loans in form of money and managing those loans,
- issuing credit guarantees,
- transactions and also brokerage with deposits, debt collection, doing payments etc,
- transactions and also brokerage connected to a valid currency,
- also transactions and also brokerage connected to stocks and bonds
- managing investment funds.
On these services you do not calculate VAT. Instead, you have to charge 8,5% tax on financial services.
Financial services tax in Slovenia: payment and reports
The tax base for the financial services tax in Slovenia is the amount that the company received as a payment. That payment has to be connected to financial services. In practice, those payments are done in form of commissions, compensations or expenses. Banks and other financial instutions are the ones that have to charge and pay this tax. But also private companies can fall under this tax. For example, if they are referring clients to banks for opening a bank account. For this it receives a comission and has to pay the tax on it. You can also follow our Facebook and Instagram for more valuable tips from out tax experts.
Here is an examples of the calculation:
Received commission: 500 EUR
Financial services tax in Slovenia (8,5%): 42,50 EUR
Income from the commission: 457,50 EUR.
The tax period is a calendar month. You need to prepare and submit the report through the portal eDavki no later than on the last work day in the month after the tax period. The due date for paying the tax is the same. So you need to pay it on the last work day of the month that comes after the taxation period for which you did the report.