When doing business in Europe, most entrepreneurs want to become a value added tax (VAT) payer. It makes it easier to do business with companies in other EU countries. But do you know what it means to become a VAT payer in Slovenia? In this article, DATA experts explain to you how and when to become a VAT payer in Slovenia!
Call our experts on +386 1 6006 270/+386 1 6006 274. You can also use Viber/Whatsapp +386 40 530 718/+386 64 173 023 or write to us on [email protected]
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What does it mean when a Slovenian company becomes a VAT payer?
The Law on Value Added Tax (ZDDV-1) regulated Value Added Tax in Slovenia. According to this law, you are obliged to calculate VAT for a certain period of time. After a certain period, you are also obliged to pay the collected VAT to the state – deducting the tax you have already paid for the purchase of your business assets. In this way you become a VAT payer. If you exceed one of the criteria for mandatory entry into the VAT system or become a voluntary VAT payer, you have to start charging VAT on your services or products at the correct rate. The general VAT rate is 22% – except for supplies of goods and services for which there is a lower tax rate – 9.5%.
When does a company in Slovenia have to become a value added tax (VAT) payer?
- during the last twelve months exceed or are likely to exceed 50,000 euros of taxable turnover,
- in case of acquisition of goods within the EU, if the value of these purchases in the current calendar year exceeds EUR 10,000,
- in the case of reverse charge – ie when you provide or receive services that are subject to VAT only from recipients of services,
- when a taxpayer procures goods on the territory of Slovenia due to his transactions related to the performance of activities outside Slovenia,
- in the case of the provision of a service in the territory of another Member State for which the VAT payer is exclusively the recipient of the services.
What does it mean to become a value added tax (VAT) payer voluntarily?
In case you want to become a value added tax payer because it is profitable for your business conduct, you or your accountant can file a request via e-Tax, at the VEM point (electronically) or physically at the branch of the Slovenian Financial Administration (FURS). In case you voluntarily become a VAT payer, you must stay in the VAT system for 60 months. As a VAT payer, FURS also requires more reports from you. Therefore, we recommend that you, as a VAT payer, use the services of our accounting and tax consulting in DATA d.o.o.
Need assistance? Contact DATA for full support!
If you also need more details on business in Slovenia, send us an email to [email protected] You can also call us on +386 1 6006 270/+386 1 6006 274 (landline). You can also use Viber/Whatsapp +386 40 530 718/+386 64 173 023 or skype data.business7.