VAT Guide for Freelancers in Slovenia

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 Slovenian VAT Rates

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 Standard Rate - Unless the items or services you offer fall under the reduced rate or zero-rated category, you should charge the standard VAT rate of 22%.
    • The Reduced Rate of 9.5%- Applies to items such as foodstuffs, live animals, seeds, plants, water supplies, medicines, medical equipment, transport of passengers, books, admission fees, royalties for writers and performers, specific works of art, certain residential properties, renovation of residential properties, cleaning of residential properties, hotel accommodation, use of sports facilities, burial and cremation services, public hygiene services, minor repairs of bicycles, shoes and clothing, domestic care services, hairdressing services, and supply of flowers.
  • The Further Reduced Rate of 5% - Applied on the supply of books and newspapers, in physical or e-form.
  • The Zero Rate - When items are zero-rated, they are still VAT-taxable, but the rate of VAT you must charge your consumers is 0%. This rate covers intra-community and international transport (excluding road transport). Although there are no charges on zero rates, you should record sales of goods and services and create a report based on your returns.

Registering for VAT in Slovenia

Who is required to account for VAT in Slovenia?

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.

VAT Guide for Expat Freelancers in Slovenia

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:

  • obtaining a tax number;
  • appointing a tax representative (obligatory if the taxpayer is from a non-EU country),
  • applying for a VAT identification number (possible only via the eDavki: eTaxes system).

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. 

When to register for VAT in Slovenia

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.

How to Register for VAT in Slovenia

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.

Financial Obligations of VAT Registered Freelancers In Slovenia

Registering for VAT is only the first step; starting from the day you register, you must make sure to:

  • Charge the correct VAT rate
  • Pay any VAT owed to the tax office
  • File VAT returns
  • Maintain VAT records and a VAT account

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 business name and address
  • Your business VAT number
  • Invoice date
  • Invoice sequencing number
  • Description of the goods or services
  • Rate of VAT applied to each item
  • The total amount, including VAT

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:

  • Printed copies of the invoices you send out
  • Received invoices
  • Agreements on self-billing
  • The self-billing vendors' names, addresses, and VAT numbers
  • Credit and debit notes
  • Records of imports and exports
  • Records of bank statements, check stubs, cash books, till rolls, and paying-in slips in addition to your VAT account.
  • Record of sales of goods and services that come under the zero VAT rate. Also, create a report based on your returns.

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.

How Xolo Can Help?

Why submit your tax reports with help from certified tax consultants? Learning all the Slovenian tax guidelines can be challenging, especially if you’re a sole proprietor and in charge of several aspects of your business. Luckily, at Xolo, we offer a range of solutions that can handle all the paperwork and legal jargon, allowing you to focus on your core competencies.

Xolo Go is a quick and efficient way for freelancers who don't have a registered LLC or sole proprietorship to invoice clients legally. 

  • Signing up takes only 10 minutes, and once you do, taxation, corporate compliance, and all the tricky VAT calculations are all automatically taken care of in the background!
  • We charge a flat rate of 5% from every withdrawal to your personal bank account. No surprise fees, no contracts, and no BS.

Xolo Leap requires Estonian e-Residency, but you can start your own EU company with us once you have it!

  • We offer different service tiers depending on the solopreneur's (or as we call them, Xolopreneur's) individual needs.
  • Once you get your business set up with Xolo Leap, you can literally run it from anywhere in the world! So whether you’re a freelancer looking to gain access to the EU market or a digital nomad who can’t be tied down - this is the place for you! 

So connect with us immediately, and we’ll help you get your one-person business up and running in Slovenia in no time!