Recently adopted amendments to the Slovenian VAT Act came into effect as of 1st January 2019. The changes mainly focus on implementing the EU Directives related to vouchers, and on simplification rules for cross-border sales of electronic services. They also remove certain administrative hurdles.

Transposition of the EU Vouchers Directive (Council Directive (EU) 2016/1065)

This introduces rules for the harmonised VAT treatment of vouchers (coupons) in the EU. The new rules define both the notion and types of vouchers and identify the tax point and the tax base for the separate voucher types. Importantly, the VAT treatment of a transaction depends on the nature of the voucher: a “single-purpose” voucher is taxed at the point of sale, whereas a “multi-purpose voucher” is taxed at the time of redemption.  For more information, please read our story on the new EU voucher rules.

Transposition of EU Directive 2017/2455

This relates to the cross-border supply of electronic services. As of 1st January 2019, EU-wide simplification rules for companies carrying out cross-border business-to-consumer sales of electronic services, come into effect.

Removal of certain compliance obligations

The following main requirements have been withdrawn to facilitate enhanced cooperation between taxpayers and the tax authority:  

  • Statement of the option to tax on immovable property transactions. Instead, at the tax office’s request, as proof of intention, businesses must produce a written agreement which was concluded prior to the transaction; and
  • Advance statement of deductible proportions. Businesses no longer need to submit estimates of anticipated transactions; they may themselves calculate the provisional proportions using their estimates. Moreover, the statement on separate deductible proportions is no longer required.

Rules for submitting VAT returns under voluntary disclosure

For error correction and the late submissions of VAT returns, the interest rate is set at 3%. But, if the tax office subsequently discovers that a business has paid an insufficient amount of VAT, it will be charged default interest. This interest is due from the period of the VAT payment deadline until the tax is fully paid and will be calculated in accordance with the daily interest rate from the Tax Procedure Act.

If you would like further advice on these developments, please do get in touch to discuss how we can help you.

By |January 24th, 2019|