Govt adopts watered-down amendments to VAT act

Ljubljana – The government has adopted a new version of amendments to the act on value added tax (VAT) after its first proposal was defeated in parliament in July. The original amendments were drafted as part of broader tax reform efforts. The new version preserves some of the key solutions but is narrower.

For example, zero-emission vehicles for business purposes will be eligible for full VAT deduction and hardcopy receipts will be printed out by merchants only at the request of customers.

Businesses that fall under the VAT system will no longer need to produce receipts the first time they submit a VAT return, and foreign businesses selling goods and services in Slovenia will not have to register in the country if they only sell to other businesses that are registered for VAT purposes.

Farmers will no longer automatically enter the VAT system once they reach a certain threshold of income, instead it will be up to them whether they wish to enter the system.

The amendments also transpose certain directives, for example new EU rules that entered into force in July and require all imports to the EU to be subject to VAT. Before that, packages worth up to EUR 22 were VAT-exempted.

Under the proposal, adopted at a correspondence session on Wednesday evening, some of the provisions would take effect immediately and some in July 2022.

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