VAT calculation for Slovenian companies who do services on real estate in the EU
Do you plan to open a company in Slovenia but also plan to do business in Europe, namely in other countries? If you plan to services on real estate which are in other EU countries, you need to make sure that you do the correct VAT calculation. Depending on the service, different provision also apply. The place of taxation is not always the same as the place where the service takes place. So each VAT payer needs to do the correctly define the service and where it will take place to do the correct VAT calcualtion.
Services between companies within the EU
Most services that take place between two companies in different EU land, are usually exempt from VAT. It means that you do not calculate VAT. But here it is important that both companies are also in the VAT system in the country where they have the business seat. The general rule is that the place of taxation is usually the country where the receipent of the service is located. The taxpayer in Slovenia has to also report the VAT calculation and sale of services abroad.
Services between companies outside of EU
Similar to the previous paragraph, most services between companies outside of EU are taxed in the land of the recepient. It also means that if a Slovenian company receives a service from a US company, it has to do self-taxation in Slovenia. The VAT calculation takes place in monthly or quarterly report, through a DDV-O form. If you would not have the option for the deduction of the entry VAT, you would need to pay the VAT to the correct account with the Slovenian tax office. You can also follow our Facebook and Instagram for more updates on VAT.
VAT calculation and services on real estate
Which services also fall under work on real estate?
- services of experts (like architects, etc.) and real estate brokers,
- accommodation in hotels and similar establishments,
- granting the right to use real estate
- preparation and coordination of construction work,
- mooring of ships, …
These services are taxed in the place where the real estate is located. It also means that the taxpayer needs to do the VAT calculation in the country where they do the service. Which also means that you need to report it to the local tax office. These service are not taxed in Slovenia and you do not need to include them in your VAT calcualtion here.
Other services which have a different taxation system are also leasing labor, renting vehicles, tourist agencies, catering etc. Here it is often possible that you have the obligation to pay VAT in the country where you carry out the service. If you need support with the VAT application, our tax and legal experts can assist you.