The 2012 worldwide VAT, GST and sales tax guide

S LOVENIA 595
Reverse charge. The reverse charge applies to supplies of most
services made by nonestablished businesses to taxable persons
registered for VAT in Slovenia. The recipient of the services
accounts for VAT using the appropriate Slovenian VAT rate. If the
reverse charge applies, the nonestablished supplier is not required
to register for VAT in Slovenia.
The following are services to which the reverse charge does not
apply:
• Real estate
• Transport
• Restaurant and catering services
• Cultural, artistic, scientific, educational, sporting, entertainment
or similar services
• Ancillary transport services
• Valuations of movable tangible property or work on such property
• Short-term rentals of vehicles
Slovenia applies a domestic reverse-charge mechanism for certain
supplies and services. However, this domestic reverse-charge
mechanism does not prevent a foreign supplier from registering
locally for VAT purposes. The following activities fall within the
scope of the domestic reverse charge:
• Certain supplies and services falling in Category F of the
Slovenian Standard Classification of Activities and the erection
of montage houses
• Hiring out of staff used for activities falling in Category F of
the Slovenian Standard Classification of Activities
• Supplies of real estate for which the parties opt for VAT taxation
• Supplies of used material waste and scrap (special listed goods)
• Trade of greenhouse gas emissions
Late-registration penalties. A penalty may be imposed for late
registration or failure to register for VAT in Slovenia and for late
filing or failure to file VAT returns. Penalties vary from €2,000
to €125,000. For late payment or nonpayment of VAT, a penalty
ranging between €2,000 and €125,000 may be imposed. In addition,
interest for late payment is charged at a daily rate of 0.0247%.
Penalties ranging from €200 to €4,100 may be imposed on the
responsible person of the legal entity who commits an offense, in
addition to the company itself.
D. VAT rates
The term “taxable supplies” refers to supplies of goods and services
that are liable to any rate of VAT, including supplies that are
exempt with the right to deduct input VAT. The term “exempt
supplies” refers to supplies of goods and services that are not
liable to tax. Exempt supplies do not give rise to the right to input
tax deduction (see Section F). Some supplies are classified as
“exempt with the right to deduct input VAT,” which means that no
VAT is chargeable, but the supplier may recover related input tax.
“Exempt with the right to deduct input VAT” supplies include
exports of goods outside the EU and related services and intra-
Community supplies of goods and intangible services supplied to
another taxable person established in the EU or to a recipient
outside the EU (see the chapter on the EU, page 208).
In Slovenia, the following are the VAT rates:
• Standard rate: 20%
• Reduced rate: 8.5%