Slovenia

Value-added tax (VAT)

The Slovenian VAT Act is in line with Directive 2006/112/EC.

A standard VAT rate of 22% applies to all taxed supplies.

A reduced VAT rate of 9.5% generally applies to foodstuffs, live animals, seeds, plants, water supplies, medicines, medical equipment, transport of passengers, books, admission fees, royalties for writers and performers, certain works of art, certain residential properties, renovation of residential properties, cleaning of residential properties, hotel accommodation, use of sport facilities, burial and cremation services, public hygiene services, minor repairs of bicycles, shoes and clothing, domestic care services, hairdressing services, and supply of flowers.

As of 1 January 2020, a super-reduced VAT rate of 5% applies for the supply of books and newspapers, in physical or e-form.

Slovenia did not implement provisions on VAT grouping.

The threshold for VAT registration is EUR 50,000, which does not apply to foreign taxable persons. Non-EU companies must appoint a fiscal representative.

A VAT return must be submitted for each tax period separately, as well as in case of no transactions. The deadline for submitting the VAT return is the last business day of the month following the end of the tax period. In cases of intra-EU supplies of goods and EU business-to-business (B2B) reverse-charge services, the VAT return is due by the 20th day of the month. In the latter case, the Recapitulative Statement also needs to be submitted. All forms are submitted electronically.

The payment of the VAT liability is due by the last working day of the month. In case of VAT surplus, the tax authorities refund it to the bank account of the taxable person within 21 days after the date of the submission of the form.

Based on the Slovenian VAT Act, the following categories do not allow input VAT deduction:

• Yachts and boats intended for sport and recreation, fuels, lubricants, spare parts, and services that are closely linked thereto, other than vessels used for transport of passengers and goods, leasing, renting, and resale.
• Aircraft, fuels, lubricants, spare parts, and services that are closely linked thereto, other than aircraft used for transport of passengers and goods, leasing, renting, and resale.
• Passenger cars and motorcycles, fuels, lubricants, spare parts, and services that are closely linked thereto, other than vehicles used for transport of passengers and goods, leasing, renting, and resale, vehicles used in driving schools for the provision of the driver's training programme in accordance with the regulations in force and combined vehicles for carrying out an activity of a public line and special line transport, and special vehicles adapted exclusively for the transport of deceased people.
• Entertainment expenses (where entertainment expenses shall include only the costs of entertainment and amusement during business or social contacts).
• Expenses for meals (including drinks) and accommodation expenses, except expenses incurred by taxable person in connection with these supplies in the ordinary course of business.

The person liable to pay the VAT is generally the supplier, or, in certain cases, the recipient (reverse-charge mechanism). Slovenia implemented Art 194 of the VAT Directive in 2022, which means that foreign taxable persons do not need to get VAT-registered in case of performing taxable B2B activity in Slovenia.

Domestic reverse charge applies for construction work (including repair, cleaning, maintenance, alteration, and demolition services in relation to immovable property), supply of staff involved in the performance of these activities, supply of certain immovable property where the taxation option was exercised, supply of waste, residues, and used material and services, and transfer of greenhouse gas emission rights as defined by the act governing the protection of the environment.

On 1 January 2024, the implementation of the CESOP Directive (Central Electronic System of Payment Information) into Slovene tax legislation entered into force.

Customs duties

Goods imported from non-EU countries are subject to import customs clearance, and goods being exported from the EU customs territory must be declared for export customs clearance. The person responsible for paying the customs debt is the declarant. The declarant is the person making the customs declaration in its own name or the person in whose name the customs declaration is made. The customs declaration should be made in the prescribed form and manner (in writing or by another action specified by law). Import or export duties are customs duties and other charges payable on the import or export of goods (excise duties, environmental tax, and motor vehicle tax).

For purposes of communication with the customs offices, each person has to be identified by an Economic Operator Registration and Identification (EORI) Number, which is registered by the customs authorities on request. EORI registration is mandatory for customs clearance.

Import VAT is charged based on customs declaration at the time of the import. However, if certain conditions are met, taxpayers are able to pay the import VAT through the VAT return at the end of the month. Accordingly, the importers are not forced to finance their import VAT, as they are able to account for it and deduct it in the same VAT return.

Excise tax

Excise tax is charged on the release into free tax circulation or import of tobacco products, alcohol and alcoholic drinks, fuel and mineral oils, and electricity. The table below presents the valid rates of excise tax.

Property tax

Currently, there is no specific tax levied on immovable property in Slovenia. However, charge for the use of building land is levied on vacant and constructed building land in possession of legal persons and individuals. Charge is set by local communities for vacant building land based on the area of the building land planned for building, and for constructed building land based on the useful area of the residential house or business premises thereon.

Real estate transfer tax

Real estate transfer tax of 2% is charged on real estate transfers and financial leases of real estate, unless VAT has been charged on the transaction.

Stamp tax

There is no stamp duty in Slovenia.

Payroll taxes

There are no payroll taxes other than social security contributions and withholding of personal income tax (PIT) in Slovenia. The tax tables applicable to individuals are provided in the Taxes on personal income section of Slovenia’s Individual tax summary.

Social security contributions

Both employer and employee must make social security contributions. Contributions are withheld by the Slovene employer at the payment of income. The basis for calculation of the social security contributions is the gross amount of income. The types of contributions are as follows:

Financial services tax

Slovenia levies tax on financial services provided by banks and other financial institutions. The tax rate is 8.5% and is applied to the fee of the financial service.

Insurance premium tax

Insurance premium tax is levied on insurance premiums at the rate of 8.5% and paid by insurance companies, unless the insurance lasts for at least ten years.

Environmental tax

Environmental tax is charged on carbon dioxide (CO2) emissions, waste disposal, lubricating oils and fluids, used tyres, and used motor vehicles.

Motor vehicle tax

Motor vehicle tax applies to all vehicles that are registered for the first time in Slovenia. The taxpayer is the person that acquires the vehicle from abroad. The tax amount depends on the type of motor vehicle (tariff code), type of fuel, CO2 emission, engine power, and EURO emission standard. 

Water vessel tax

The existing water vessel tax is imposed on:

• vessels exceeding five metres in length that are entered in vessel registers, with the exception of vessels under construction
• vessels exceeding five metres in length whose owners are residents of the Republic of Slovenia and that comply with the technical conditions required for entry into the vessel registers referred to in the first bullet but have not yet been entered into these registers, and
• vessels exceeding five metres in length whose owners are residents of the Republic of Slovenia and that comply with the technical conditions required for entry into the vessel registers referred to in the first bullet but have not been entered into these registers because they are registered abroad.

The tax is as follows:

In addition to the water vessel tax described above, the government levies the following additional tax on water vessels:

The tax liability decreases by 5% per each year of age of the vessel. The tax cannot, however, be lower than 50% of the tax liability calculated for a new vessel.