Hot topics

Slovenia Business Week no. 38: Finance Minister Proposes VAT Payment Changes

According to Bajuk, the new system of pay-after-collect tax would be in place for domestic transactions and for companies with up to SIT 50m (EUR 209,000) in annual taxable revenue

Finance Minister Andrej Bajuk has put forward changes to the value added tax act with which small companies would pay the tax after receiving payment instead of at the time of invoicing.

According to Bajuk, the new system of pay-after-collect tax would be in place for domestic transactions and for companies with up to SIT 50m (EUR 209,000) in annual taxable revenue.

Bajuk told the press in Ljubljana on Monday, 12 September that the new system, which would become valid as of next year, would apply to transactions at around 70% of Slovenian companies.

The changeover to the new system would be voluntary, meaning that companies would decide on their own whether to make the switch and therefore implement the necessary changes in accounting.

If adopted, the amended law is to result in about SIT 5bn to 7bn (EUR 21m and 29m) in immediate lost revenues for the budget. "This figure is not as high as we had anticipated," Bajuk said.

The government is planning to send the changes to parliament by the end of the month together with a number of other tax bills, including income tax law, corporate income tax law and tax procedure law.

Moreover, the budget bills for the next two years are also to be sent to parliament at the same time, Bajuk said.

According to him, the government has based its VAT changes on the models used in other EU member states. The aim is to help companies struggling to pay their tax dues because of unreceived payments from their customers.

Source: Slovene Press Agency STA

Author: STA