VAT in Slovenia: Regulations, registration, and VAT returns

The VAT system in Slovenia plays a key role in the local economy, including the growing e-commerce sector. For businesses selling goods and services on the Slovenian market, especially those operating online, understanding applicable VAT rates and accounting rules is essential. Slovenia applies both standard and reduced VAT rates, tailored to the specifics of different industries. In this article we will discuss the details regarding these rates, registration procedures and VAT returns.

VAT rates in Slovenia

The standard VAT rate in Slovenia is 22%, covering most goods and services. It is the default rate applied nationwide to products and services that do not qualify for reduced VAT rates.

Reduced VAT rate 9.5%

Slovenia also applies a reduced VAT rate of 9.5%, covering, among others:

• Food and non-alcoholic beverages
• Selected medicines
• Medical and therapeutic equipment for people with disabilities
• Passenger transport
• Tickets for cultural events
• Restaurant and catering services
• Hotels and other accommodation services
• Hairdressing services
• Small repair services (e.g., tailoring, shoe repairs)

5% VAT rate

Another reduced VAT rate of 5% was introduced in 2020. It applies to books, both in print and electronic formats (e-books).

0% VAT rate

Slovenia also provides for special cases where the 0% VAT rate is applied. This includes services related to international transport and selected activities in the agricultural and forestry sectors.

VAT registration in Slovenia

Any business wishing to operate in Slovenia and be subject to VAT must undergo the registration process. Registration takes place online via systems like e-Tax or the Slovenian Business Point.

The required documents for VAT registration include an extract from the national trade register, proof of VAT registration in another EU country, identification of the company’s representative, and the DR-04 registration form. Businesses must register at least 8 days before starting any activities requiring VAT payment.

Registration applications are reviewed by the Slovenian tax authority, Finančna uprava Republike Slovenije, headquartered in Ljubljana. Once all documents are properly submitted, the registration process typically takes up to 15 days.

VAT returns in Slovenia

VAT declarations in Slovenia are generally submitted monthly. The deadline for submitting the return and paying the tax is the last day of the month following the reporting month. Businesses with an annual turnover below EUR 210,000 can file quarterly returns. There is no requirement for an annual VAT return.

VAT refund

Businesses can apply for a VAT refund if certain conditions are met. Refunds are available to companies registered as VAT payers in Slovenia or another EU country, provided they show that VAT was paid in Slovenia.

To apply for a refund, a DDV form must be submitted, detailing sales and purchases made by the company during the reporting period. A VAT refund is possible if the purchases are directly related to business activities in Slovenia, and appropriate invoices and documents must be provided to confirm this. The VAT refund request must be submitted within 6 months of the end of the calendar year in which the VAT was incurred.

Penalties for VAT irregularities

Taxpayers in Slovenia may face penalties for improper VAT settlements. Late VAT payments incur a penalty of 0.0247% of the outstanding amount per day of delay. Additionally, failing to meet VAT return deadlines can result in administrative fines of up to EUR 125,000, depending on the severity of the violation.

Intrastat in Slovenia

For companies engaged in the intra-EU trade of goods, Intrastat regulations also apply—a system for monitoring trade.

The basic threshold for import values is EUR 220,000, with a detailed threshold of EUR 4 million. For exports, the basic threshold is EUR 270,000, while the detailed threshold is EUR 9 million.

Companies exceeding these thresholds must begin submitting declarations in the month they surpass the applicable threshold. This obligation is ongoing and must continue throughout the year. Exemption is granted if a company’s turnover did not meet the threshold in the previous year.

Summary

VAT in Slovenia, with a standard rate of 22%, is a significant component of the national tax system. The system also offers reduced rates, such as 9.5% for food and 5% for books, supporting economic diversity. Businesses operating in Slovenia must register for VAT, submit regular declarations, and make timely payments to avoid financial penalties and ensure compliance with regulations.