VAT rate changes; registration threshold increase, launch of Group VAT
The Slovenian government updated the Value Added Tax (VAT) Law (EVA 2024-1611-0042).
The changes to the VAT Act (ZDDV-1) include revisions to entrepreneur taxation thresholds, the introduction of VAT grouping, the adoption of amendments to the VAT Directive (2022/542), and the implementation of certain VAT exemptions. See more in our Slovenia VAT guide.
2026 VAT Group available
A significant addition is the introduction of VAT grouping, effective from 1 January 2026. This mechanism will enable a VAT group representative to collectively manage VAT responsibilities for group entities, calculate obligations, claim refunds, and collaborate with tax authorities on audits and related procedures.
EU-wide SME VAT registration threshold 2025
The bill incorporates provisions from Council Directive (EU) 2020/285, which amends Directive 2006/112/EC regarding the special scheme for small enterprises and Regulation (EU) No. 904/2010 on administrative cooperation for monitoring compliance with this scheme. Key measures include extending the VAT exemption for small taxpayers from other EU Member States supplying goods and services in Slovenia and enabling small enterprises in Slovenia to make exempt supplies in other Member States.
Additionally, the VAT registration threshold for small enterprises in Slovenia will increase from EUR 50,000 to EUR 60,000, with the current transitional limit of EUR 66,000 remaining valid until surpassed.
Other changes to local law
- Incorporating the amended definitions of reduced VAT rates from the 2022/542 Directive;
- Increasing the standard VAT rate for beverages with added sugar or sweeteners;
- Exempting sales via vending machines from invoice requirements, excluding machines used for services;
- Allowing VAT exemption for imported goods benefiting victims of natural disasters, and related goods and services supplied in Slovenia;
- Revising VAT cash accounting rules in line with the European Court of Justice’s judgment C-9/20; and
- A five-year limit on carrying forward excess VAT deductions from the date of submission of the relevant VAT return. It mandates record-keeping of VAT charged and deducted, with data transmission to the Financial Administration of the Republic of Slovenia.
The full text of the draft bill (EVA: 2024-1611-0039) is available online in Slovenian.
General Overview of VAT Law in Slovenia
Slovenia’s VAT system is governed by the Value Added Tax Act (ZDDV-1), which aligns with EU VAT regulations.
VAT applies to the supply of goods and services, intra-community acquisitions, and imports. Standard and reduced rates are in place, with exemptions for certain transactions such as medical, educational, and cultural services. Taxable persons must register for VAT if their annual turnover exceeds the set threshold or if they meet specific criteria. Registered entities must issue invoices, maintain comprehensive records, and file periodic VAT returns. The tax authority oversees compliance through audits and cooperation with EU Member States under shared administrative frameworks.
