Generally EU member states follow the compulsory VAT registration thresholds set in the EU VAT Directives. The EU permitted Slovenia to raise its compulsory VAT registration threshold from €25,000 to €50,000 per annum, so businesses with taxable supplies below this limit do not need to register or apply the VAT system. This relieves small businesses of the administrative burden of operating VAT but means that they cannot reclaim the VAT on their purchases. The new registration threshold has been brought in as part of a special scheme aimed at reducing the VAT compliance burden on SME companies and will apply from 1 April 2013.
Companies and non-incorporated entrepreneurs may apply for voluntary Slovenian VAT registration below this limit. Voluntary registration allows businesses to reclaim the VAT incurred on their purchases and other expenses but obliges them to charge VAT on their sales except when these are VAT-exempt. Voluntary registration also means that businesses must shoulder the administrative burden of keeping VAT records and submitting VAT returns.
