Slovenia: Reverse Charge on Domestic Supplies

Тhe National Assembly has recently adopted Amendments to the Value Added Tax Act which entered into force on 22 January 2022.

Among the most important amendments introduced to the Value Added Tax Act is the introduction of reverse charge on domestic supplies made by foreign companies. Non-resident companies making local supplies in Slovenia will no longer be required to register for VAT in Slovenia in case their customer has a Slovenian VAT number. In such case the VAT register business customer will account for the VAT via the reverse charge mechanism and the foreign supplier having exclusively such transactions will be relieved from the obligation for VAT registration in Slovenia.

Amendment to the Value Added Tax Act has also been adopted in Slovenia in relation to deductions on VAT on CO2 emission-free vehicles and the abolition of the deliverance of paper invoices.

Taxable persons can deduct input VAT if the business vehicle does not exceed EUR 80,000 (this includes VAT and other duties).

Input VAT on spare parts, services, the purchase of fuel and lubricants can also be deducted.

According to another important amendment adopted, there will no longer be an obligation to issue or deliver paper invoices to customers, unless a customer requests a paper invoice.

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