Slovenia’s VAT policy is based on the "destination principle" of the European Union VAT system. This means that VAT is payable to the country's government where the product or services are consumed, regardless of where you're supplying them from. So, if you have clients in Slovenia, you have to comply with Slovenian VAT rules. VAT is administered by The Republic of Slovenia’s Financial Administration (or Ministry of Finance).
If you’re a freelancer in Slovenia worried about being tax-compliant, this guide has everything you need to know about VAT in Slovenia in a nutshell. Let's get started!
The standard rate of VAT, or davek na dodano vrednost in Slovenian, is 22%. There is, however, a reduced tax rate of 9.5% and 5%, which apply to certain goods and services. What are the different VAT rates in Slovenia? Why do they exist?
There are four different VAT rates in Slovenia, and freelancers must charge the amount that applies to their products and services:
The threshold for VAT registration is EUR 50,000, which does not apply to foreign taxable persons. The threshold means that your taxable sales revenue should exceed €50,000 before you need to register for VAT. If your sales revenue is currently below €50,000, registering for VAT is optional.
Freelancers and foreign businesses from outside the EU are required to appoint a fiscal representative.
Any expat self-employed individual or a foreign company with services or business in Slovenia is considered taxable and should register for VAT. VAT identification includes the following steps:
Xolo can help you register as a freelancer in Slovenia and handle all the necessary paperwork on your behalf. With Xolo Go, you use a slice of our company as a legal framework to invoice your clients whether they're across town or across an ocean.
Since a person becomes liable for VAT once their annual turnover exceeds €50,000, you must submit an application to register for a VAT identification number in the month when your turnover is likely to exceed the annual threshold.
Taxable persons who are not established in Slovenia and who carry out a tax-liable provision of goods or services in Slovenia must submit a request for the issue of a VAT identification number no later than 15 days before carrying out a taxable provision.
To register for VAT online you must directly apply for a VAT identification number by submitting an electronic form via the eDavki: the eTax system. Alternatively, you can use the Mini One-Stop Shop: an EU-wide tax system that allows you to consolidate all of your EU VAT in one single tax return. This scheme is optional but beneficial if you have customers in multiple countries, including Slovenia, within the EU. In addition, MOSS allows you to avoid registering in each Member State of consumption. To learn more, click here.
Another option is to hire an accountant (or agency) to handle your VAT returns and dealings with the tax office. Xolo provides services like Xolo Go and Xolo Leap, which help with precisely this and any other VAT concerns you may have.
If you’re unable to register online, you must register by mail to the tax administration office.
Registering for VAT is only the first step; starting from the day you register, you must make sure to:
VAT invoices are the EU’s version of tax receipts. They’re an official record of how much tax you charged and collected, and hence official proof of how much tax you owe the government. Your invoices must include the following information:
Your invoices must be issued within six months of delivering your product or service, and you must maintain them for ten years, just in case any authority wants to verify your tax. Your records should be precise, legible, complete, and simple to understand. As a freelancer, you must maintain a history of the following things:
Does this information sound overwhelming? Don’t worry, Xolo can help! We automatically generate, send, and store all your invoices digitally, so you won’t have to worry about misplacing them over the next decade.
Xolo Go is a quick and efficient way for freelancers who don't have a registered LLC or sole proprietorship to invoice clients legally.
Xolo Leap requires Estonian e-Residency, but you can start your own EU company with us once you have it!
So connect with us immediately, and we’ll help you get your one-person business up and running in Slovenia in no time!