Invoicing and Tax regulation in Slovenia

Slovenia initiated the modernization of its transaction processes in 2015 by implementing mandatory B2G e-invoicing. Digitalization has been successful and is scheduled to extend to mandatory B2B e-invoicing by 2025. Despite this phased approach, many businesses have opted to transition earlier, realizing significant benefits in terms of cost savings, time efficiency, and reduced manual errors, which are particularly prevalent in tax reporting. Given the standard VAT rate in Slovenia at 22% and corporate tax rate at 19%, minimizing errors is crucial to avoid increased liabilities and penalties.

 

To ensure you're meeting the requirements while optimizing your financial strategy, explore our comprehensive guide on (e-)invoicing, tax regulations, and digital reporting in Slovenia.

 

Invoicing Regulations in Slovenia

Invoicing regulations in Slovenia are managed by the Financial Administration of the Republic of Slovenia (Finančna uprava Republike Slovenije) under the guidance of the Slovenian Value Added Tax Act (Zakon o davku na dodano vrednost, ZDDV-1). Invoices are required for all transactions involving the sale of goods or services, applicable to both B2B and B2C dealings. Customers must receive invoices upon the delivery of goods or completion of services. For transactions where the customer is another business, invoices must be issued by the 15th day of the month following the delivery or service. Moreover, VAT-registered businesses must issue VAT invoices for all taxable sales, complying with Slovenian tax laws and regulations.

At a minimum, the invoice needs to include:

Date of Issue,

Sequential Number,

Supplier Information: Name, address, and tax identification number,

Customer Information: Name and address of the customer,

Description of Goods or Services,

Quantities and Unit Prices: The quantity and price per unit,

Date of Supply: The date when the goods were delivered or the services were completed,

Total Amount and Tax Details: The taxable amount, the tax rate applied, the tax amount, and the total amount including tax,

Tax Point: The date on which VAT becomes chargeable.

 

B2G Invoice Specifications

For B2G transactions you have to issue e-invoices.

 

B2C Invoicing

For most B2C transactions you can issue simplified invoices, which require less information compared to full invoices.

 

Simplified Invoice

In Slovenia, you can issue simplified invoices for transactions where the total invoice amount does not exceed €100.

Simplified invoices include:

Date of issue,

Unique invoice number,

Supplier’s VAT identification number,

Nature of goods or services,

Total amount payable,

VAT amount: The total amount of VAT included in the gross total, it is not necessary to breakdown the VAT rate unless the items are subject to different VAT rates.

 

Invoice Archiving

In Slovenia, you must archive invoices for a minimum period of 10 years. The archiving period starts from the end of the year in which the invoice was issued. Archiving abroad is allowed under specific conditions.

 

 

E-invoicing Regulations

Electronic invoicing, or e-invoicing, is the digital exchange of invoice information between a supplier and a buyer. The creation of electronic invoices in Slovenia involves a streamlined process that includes the use of specialized software for generating invoices, selecting appropriate electronic invoice formats, and choosing transmission methods such as the Peppol web service or email. This process not only facilitates the efficient submission and validation of invoices but also ensures that recipients are promptly notified, significantly enhancing the invoicing workflow for businesses.

As of 2015, Slovenia has mandated B2G e-invoicing, and there are expectations that B2B e-invoicing will become mandatory by 2025. Currently, B2C and B2B e-invoicing remain optional, yet many Slovenian companies have already adopted e-invoicing proactively. The advantages of e-invoicing include improved operational efficiency, quicker payment processes, and enhanced compliance with tax regulations, making it a preferable alternative to traditional paper-based invoicing.

Slovenian e-invoicing regulations align with Directive 2014/55/EU, which mandates public entities to be equipped to receive and process e-invoices that adhere to the European standard EN-16931. Furthermore, Slovenia participates in the PEPPOL network, enhancing standardized cross-border e-invoicing within the EU through the use of electronic invoices. To support these requirements, the Slovenian government utilizes e-SLOG 2.0, an adapted standard for the electronic exchange of invoices, including a structured format that complies with EU norms, facilitating the receipt and processing of e-invoices in dealings with public sector entities.

 

E-invoicing Process in Slovenia

Taxpayers in Slovenia must register on the Slovenian Tax Administration’s online portal, known as the eDavki system. This platform allows them to manage tax-related activities, including the submission of electronic documents. The process follows:

Completing a transaction: Slovenian taxpayers are required to generate e-invoices at the time of transaction.

Upon submission: The electronic invoice is transmitted to the Tax Administration’s system. This system conducts a review to ensure that the invoice meets all regulatory requirements and is correctly formatted.

After validation: Once an invoice is verified, it is marked with a unique identification code. This code serves as proof that the invoice has been accepted and recorded by the Tax Administration.

The customer receives this invoice: The invoice, complete with the unique identification code, is then sent to the recipient. This invoice acts as an official document for both accounting and tax purposes.

Customers or other interested parties can verify the transaction: Through the eDavki portal. This online service provides tools for all stakeholders to access and review the details of electronic invoices, enhancing transparency and compliance with tax regulations.

 

Governmental Body Responsible for E-invoicing

Responsibility for e-invoicing regulations in Slovenia lies with the Public Payments Administration of the Republic of Slovenia, known as UJP.

 

E-invoicing Formats

Slovenia has developed the e-SLOG 2.0 system, an e-invoicing standard designed to align with the European standard EN 16931, which is also compatible with the PEPPOL network.

E-invoicing formats commonly used in Slovenia:

UBL (Universal Business Language)	Internationally recognized standard that includes a suite of XML-based business documents specifications.
EDIFACT	Electronic Data Interchange For Administration, Commerce and Transport, EDIFACT is a format used for electronic data interchange.
ZUGFeRD	Primarily used in Slovenia, it combines visual PDF/A-3 documents with embedded XML data, ensuring that the invoice can be read both by humans and by software systems.
Factur-X	Merges PDF and XML formats to ensure the invoice is machine-readable and maintains human readability.

 

E-invoices Validating

Ensure that your e-invoices adhere to both European standard EN 16931 and specific Slovenian requirements. Further validation of e-invoices is not mandatory, but you can use a qualified digital certificate. If you use it, then it must be verified to confirm that the invoice remains unaltered and originates from a trusted source.

 

E-invoice Archiving

You must archive E-invoices for a minimum period of 10 years. The archiving period starts from the end of the year in which the invoice was issued. Archiving abroad is allowed under certain conditions.

 

 

Tax Regulations

The standard VAT rate in Slovenia is 22%. This applies to most goods and services. A reduced VAT rate of 9.5% applies to various items, like medicines, passenger transport, and some cultural and sports activities. An exception are printed and electronic publications with an even lower VAT rate of 5%.

 

Corporate Tax

Corporate tax rate is 19%, while the capital gains tax varies from 0% to 25%.

 

VAT on Digital Products

In Slovenia, the VAT rate applied to digital products, such as downloadable software, or online services, is generally subject to the standard VAT rate of 22%.

An exception are e-books and newspapers with a reduced VAT rate of 5%.

 

 

VAT Payments and Returns

In Slovenia, businesses are required to file a VAT Return with the Financial Administration of the Republic of Slovenia (Finančna uprava Republike Slovenije, FURS) to report the VAT they have collected from sales and the VAT they have reclaimed for business purchases. The VAT Return should include:

VAT collected on sales,

VAT credits for VAT paid on business purchases.

The net VAT amount, the difference between the VAT collected on sales and the VAT credits from purchases, is indicated on the VAT Return and must be paid to the Financial Administration. If the VAT credits exceed the VAT collected, the business can claim a refund.

The reporting frequencies are:

Monthly: Reports must be submitted by the 20th day of the month following the reporting period. Mandatory for businesses with a turnover exceeding €50,000 in the previous year.

Quarterly: Reports must be submitted by the 20th day of the month following the reporting period. Suitable for businesses with a turnover of less than €50,000.

The Financial Administration of Slovenia strongly encourages the electronic filing of VAT Returns and payments through its online platform (eDavki).

 

VAT Registration Threshold

VAT registration threshold for domestically established businesses is €50,000.

For EU-based businesses engaged in distance selling of goods or services to the Slovenian consumers, the threshold is €10,000.

Non-EU businesses selling into Slovnenia have no VAT registration threshold; they are required to register for VAT immediately upon beginning sales of goods or services to Slovenian consumers.

 

 

E-invoice Requirements

In Slovenia, e-invoice requirements adhere to EU standards, demanding components such as:

Unique identification number;

Date of issuance;

Identification of the seller and the buyer: full name, address and VAT identification number;

Information about good or services provided: description, quantity, unit price;

VAT information: total amount excluding VAT, applicable VAT rate, total VAT amount;

Total amount including VAT;

Currency used;

Payment terms;

Reference number for tracking;

Electronic signature or other means of ensuring authenticity and integrity.

For businesses with repeating customers, setting up recurring invoices can streamline the billing process by automating regular, automatic payments.

 

Utilizing invoicing software can significantly benefit businesses in creating, sending, and managing e-invoices in compliance with Slovenian regulations. These tools not only help in generating professional invoices but also in streamlining the invoicing process, improving cash flow, and ensuring that payments are received on time.

See how Space Invoices can help.

 

B2B E-invoice Specifics

Depending on the nature of the transaction, you might also need to include additional details such as terms of payment, purchase order references, and any applicable trade terms.

 

B2C E-invoice Specifics

For most B2C transactions you can issue simplified e-invoices, which require less information compared to full invoices.

 

Simplified E-invoice Requirements

In Slovenia, you can issue simplified e-invoices for transactions where the total invoice amount does not exceed €100.

Simplified invoices include:

Date of issue;

Supplier identification: The name, address and the VAT number is required if the total amount of the invoice, including VAT, is above €100;

Type of goods or services;

Total amount and VAT: The total amount payable and the VAT amount.

 

 

Digital Reporting R

Currently, digital reporting is mandatory solely for B2G transactions. This requirement applies to all resident taxpayers in Slovenia, including foreign companies with a permanent establishment in the country, who provide goods or services to public entities.

Businesses registered for VAT in Slovenia are required to submit a VAT Return electronically via the Financial Administration of the Republic of Slovenia's (Finančna uprava Republike Slovenije, FURS) online service portal, eDavki. This submission can be made directly on the portal, through business software that supports this functionality, or through a tax agent.

Furthermore, Slovenian tax regulations encourage businesses to maintain electronic records of all transactions to comply with local tax laws. These records are essential for audit purposes and must be retained for a minimum of ten years.

 

SAF-T

SAF-T is not yet mandatory in Slovenia.

 

Data Breaches

If a data breach occurs in Slovenia, you must notify the Information Commissioner of Slovenia within 72 hours of becoming aware of the incident. If the breach poses a significant risk to individuals' rights and freedoms, affected individuals must also be notified without undue delay. This requirement aligns with the General Data Protection Regulation (GDPR) standards enforced across the European Union.

 

 

Penalties

E-invoice senders, receivers, and service providers can be fined between €1,000 and €10,000 depending on the offense.

 

Tax Penalties

For late VAT filings or payments, penalties range from €4,000 to €125,000, depending on the taxpayer's size and the gravity of the offense. A default interest rate of 3% applies to late payments, increasing to 7% if established during a tax audit.

 

 

Streamline Global Invoicing and Digital Reporting with Space Invoices

One way to comply with (e-)invoicing, tax and reporting regulations in Slovenia is to use a provider like Space Invoices.

You will be able to:

Have one API for current and future worldwide compliance, including Slovenia

Support and upsell your clients worldwide, including Slovenia

Become the one-stop shop for current and future clients

Save time and money streamlining the process and eliminate manual errors

Rest assured all documents are archived and successfully reported to responsible institutions

Save time and money with less than a week-long integration

 

Having questions about how to achieve compliance in Slovenia?

We are ready to help.

 

 

This guide is provided by Space Invoices and does not constitute professional tax advice or opinions tailored to the specifics of any particular business or situation. Space Invoices does not accept responsibility for the accuracy or applicability of the content within this guide. Tax regulations, e-invoicing requirements, and digital reporting standards are subject to frequent changes and complex interpretations that require validation by qualified tax professionals. It is the user's responsibility to evaluate the relevance and accuracy of the information provided and to consult appropriate professionals. Space Invoices does not offer professional tax opinions or advice through this publication.

Looking to automate real-time reporting and tax compliance for Slovenia? Let's talk