Slovenia becomes 19th EU member states with VAT group simplification option
Slovenia is to introduce the option for related taxpayers to join under a single VAT number for reporting and exempt intra-group invoicing – ‘VAT group’. This is based on Article 11 of the EU VAT Directive 2006/112/EC. The legislation is expected to be implemented for January 2025, which then goes operational 1 January 2026.
Slovenia will be expecting one nominated member of the group to take on responsibility for the consolidated return.
Read more in our Slovenia VAT guide.
Compiling Slovenian or any VAT or GST group returns is complex, time consuming and fraught with tax liability risks. VAT Calc’s single platform VAT Filer can accurately complete any VAT group filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.
Related VAT registered resident business are able to consolidate their reporting into a single return and share the same VAT number. This means intra-group transactions would be made without VAT. Intra-group VAT transactions would be zero-rated, thus avoiding cash flow requirements.
Requirements to join a VAT Group
To join, members of a VAT group must be financially and/or organisationally linked. Financial links typically include (not confirmed yet for Slovenia):
- holds directly more than 50% of the share capital in;
- holds more than 50% of the voting rights in; or
- holds more than a 50% participation in the profits of
Organisational links include:
- they either legally or actually, directly or indirectly, function under the joint management; or
- their activities are organized, wholly or partly, in agreement with one another
EU VAT Group rules
Slovenia is introducing the scheme under the rules of the EU VAT Directive Article 11 of Directive 2006/112/EC. This stipulates that group members must be closely linked financially, economically and organisationally to be treated as one taxable person. Typically, this means at least 75% share control of companies within the group, shared management or shared business goals or activities. This can include a member of the group providing goods or services that are mostly / wholly consumed by other members of the group.
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