Slovenia – introduction of reverse charge for foreign BtoB sellers as from 22 January 2022

Slovenia’s National Assembly approved adoption of Article 194 of the EU VAT Directive for the VAT Act. That means that VAT compliance obligations can be shifted  from foreign B2B seller to their resident customers. This simplification means VAT is not charged by the vendor, and the recipient records the transaction as a ‘reverse charge’ with no cash payment.

This is an interesting opportunity to rethink how you do business currently and how would you like to do in the future. At the same time currently there is uncertainty how to deal with this legislative change for foreign companies already being registered. So detailed analysis might be required.

Slovenia already operated the domestic reverse charge on a range of VAT fraud-sensitive sectors, including:

  • construction work, including maintenance, repairs, cleaning, construction, demolition of immovable property
  • staff hire for above
  • immovable property with option to tax
  • certain scrap materials
  • carbon trading certificates

Slovenia’s VAT Gap was recently estimated at €298 million per annum, just over 7% of revenues and this measure should help to decline it.

In case of any questions and for further information, please contact Nataša Jancar Golob,

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