In practice, it is often unclear what the invoices and letters that companies send or deliver to their partners (buyers, clients, etc.) must contain in accordance with the law. Letters and issued invoices must contain the information and components specified by the Companies Act, the Value Added Tax Act and the Slovenian Accounting Standards. The Market Inspectorate of the Republic of Slovenia checks the correctness of issuing invoices and letters. In the event of a violation, the latter can also fine the taxpayer, which is why the legally required as well as some recommended information and components on letters and issued invoices are presented below.

Mandatory information and ingredients on letters

Business letters are used in various cases of business correspondence between companies. They usually appear in the form of inquiry, offer, order, order confirmation, order rejection, order cancellation, complaint and reminder[1]. Mandatory information and components that letters must contain are defined in the Companies Act (hereinafter ZGD-1)[2].

The first paragraph of Article 45 of the ZGD-1 – notification of registration data defines what each letter must contain. All letters sent by the company to the addressee must include:

  • the entire company;
  • company headquarters;
  • registration authority with which the company is registered and
  • registered number of the company.

limited liability companies (d.o.o.) and joint-stock companies (d.d.) must also state the amount of the share capital and the amount of unpaid contributions on all correspondence.

ZGD-1 in Article 686 in the first paragraph defines that a fine of 6,000 to 30,000 EUR shall be imposed on a large company, a fine of 4,000 to 20,000 EUR on a medium-sized company, a fine of 1,000 to 10,000 EUR on a small company and a fine of 500 to 5,000 EUR micro company, if the letters sent by the company do not contain information from the first paragraph of Article 45 of this Act.

In ZGD-1, it is not explicitly stated which documents are considered correspondence and whether issued invoices also fall under correspondence. In the second paragraph of Article 45, it is only stated that purchase orders are also classified as letters.

Mandatory information and ingredients on issued invoices

For the purposes of ZDDV-1[3], invoices are all documents on paper or in electronic form that meet the conditions prescribed by this law on issuing invoices ( Article 80 a to 84 a).

In accordance with Article 81 of the ZDDV-1, every taxpayer must ensure that an invoice is issued for every delivery made. The invoice can also be issued by the recipient (self-invoicing) or a third party on his behalf. The taxpayer is obliged to provide an issued invoice for:

  • supplies of goods or services performed by him to another taxable person or a legal entity that is not a taxable person;
  • delivery of goods at a distance (in accordance with the third and fourth paragraphs of Article 20 ZDDV-1);
  • any advance payment received before any of the aforementioned deliveries of goods are made;
  • deliveries of goods that are exempt from VAT, under the conditions of Article 46 ZDDV-1;
  • any advance payment for services received from another taxable person or non-taxable legal person before the services are completed and
  • other supplies of goods and services made on the territory of Slovenia (e.g. supplies to final consumers).

ZDDV-1 therefore stipulates that every taxpayer must issue an invoice for every supply of goods or services. This law also defines in more detail some supplies for which it is not mandatory to issue invoices.

In addition to the obligation to issue invoices, there are also prescribed information that invoices must contain. A taxpayer who issues an invoice in accordance with Article 81 of the ZDDV-1 must provide the following information on the invoice:

  • invoice issue date;
  • serial number that enables account identification;
  • VAT identification number under which the taxable person supplied goods or services;
  • VAT identification number of the buyer or client, under which the buyer or client received the supply of goods or services for which he is obliged to pay VAT, or received the supply of goods that are exempt from VAT according to Article 46 ZDDV-1;< /li>
  • name and address of the taxpayer and his buyer or client;
  • quantity and type of delivered goods or scope and type of services provided;
  • the date when the goods were delivered, or the date when the service was performed or completed, or the date when the advance payment was made, if this date can be determined and is different from the date of the invoice;
  • the tax base from which the VAT is calculated at the individual rate or to which the exemption applies, the unit price without VAT and any price reductions and discounts that are not included in the unit price;
  • VAT rate and
  • amount DDV, except in cases where a special regulation applies, for which ZDDV-1 excludes this information (VAT-exempt supplies).

In addition to the mandatory components of the issued invoice listed above, the issued invoice must contain:

  • in the case of issuing an invoice by a buyer of goods or a customer of services in the name and for the account of the taxpayer, the statement “Self-invoicing”;
  • in case of VAT exemption, the applicable provision of Council Directive 2006/112/EC[4] or the corresponding Article ZDDV-1 or another reference indicating that the supply of goods or services is exempt from VAT;
  • if the VAT payer is a buyer of goods or customer of a service, the statement “Reversed tax liability”;
  • in the case of delivery of a new means of transport, in accordance with the conditions from and point 2 of Article 46 of the ZDDV-1, characteristics as defined in the third paragraph of Article 3 of the ZDDV-1;
  • in the case of using a special regulation for travel agencies, the statement “Special regulation – Travel agencies”;
  • in the case of using one of the special arrangements for second-hand goods, works of art, collections and antiques, the indication “Special arrangement – second-hand goods”, “Special arrangement – works of art” or “Special arrangement – collections and antiques” and
  • if the person liable to pay VAT is a tax agent for the purposes of the second paragraph of Article 76 ZDDV-1, it is necessary to state the VAT identification number of the tax agent and his name and address.

Simplified accounts

In accordance with Article 83 ZDDV-1, a taxpayer may issue a simplified invoice for the supply of goods or services on the territory of Slovenia. A simplified invoice can be issued for supplies:

  • to final consumers (regardless of the amount);
  • to another taxable person or a legal entity that is not a taxable person, or an advance payment for this supply, if the amount on the invoice excluding VAT does not exceed EUR 100 and
  • if a document or message is issued that changes the original invoice and unambiguously refers to it.

The taxable person may not issue a simplified invoice for supplies of goods or services that he makes to another Member State in which VAT is payable, or his business unit in this Member State does not participate in the supply within the meaning of Article 192.a of Council Directive 2006/ 112/EC[5], and the person who is obliged to pay VAT is the person to whom the goods were delivered or the service was provided.

The simplified invoice must include at least the following information:

  • invoice issue date;
  • serial number that enables account identification;
  • name and address of the taxpayer and the VAT identification number under which he made the supply of goods and services;
  • quantity and type of delivered goods or scope and type of services provided;
  • the amount of VAT to be paid, or the information required for its calculation (the amount of VAT must be shown separately according to tax rates on the simplified invoice) and
  • a clear and unambiguous indication of the original invoice and the specific details that have been changed, if the invoice is a document that changes the original invoice and unambiguously refers to it.

In addition to the mandatory components listed above, the simplified invoice must contain:

  • in case the invoice is issued to another taxpayer who needs this invoice to claim VAT deduction, the name and address of the buyer or client;
  • in the case of VAT exemption, the applicable provision of Council Directive 2006/112/EC or the corresponding article ZDDV-1 or another reference indicating that the supply of goods or services is exempt from VAT and
  • if the VAT payer is a buyer of goods or customer of a service, the statement “Reversed tax liability”.

Issuing invoices of small taxpayers

Pursuant to Article 94 ZDDV-1, a small taxpayer is exempt from VAT calculation if, in the period of the last 12 months, he has not exceeded, or is unlikely to exceed, the amount of EUR 50,000 in taxable turnover. A small taxpayer, who is therefore not identified for VAT purposes, must provide at least the following information on the invoice:

  • invoice issue date;
  • serial number that enables account identification;
  • your company or name and headquarters or permanent residence;
  • your tax number (this information is mandatory according to Article 35 of the Tax Procedure Act – ZdavP-2[6])
  • selling price of goods or services (without VAT) and
  • Total value of goods sold or services provided (without VAT).

In the event that a small taxpayer issues an invoice to another taxpayer, the invoice must also include information on the quantity and type of goods supplied or the scope and type of services provided.

In the event that a small taxable person makes a supply of goods or services that is exempt from VAT payment, he can (optionally) state the relevant Article ZDDV-1 or the valid decision of the Council Directive 2006/112/EC or other references on the invoicein them, indicating that the supply is exempt from VAT.

For easier inspection and greater comprehensibility, it is recommended that the clause VAT is not calculated on the basis of paragraph 1 of Article 94 ZDDV-1 (we are not liable for VAT) or VAT is not calculated on the basis of ZDDV-1 (we are not liable for VAT) on the invoice. .

Conclusion

All correspondence and issued invoices must contain all the information and components prescribed above. This applies both to invoices issued in printed and electronic form. The amendment ZDDV-1G, which was published in the Official Gazette of the Republic of Slovenia, no. 83 of 6 November 2012, with the amended Article 84 of the ZDDV-1, introduced equal treatment of paper and electronic invoices, which is supposed to remove obstacles to electronic invoicing[7].

All correspondence and issued invoices must contain all prescribed information and components. Although the law does not explicitly state that issued invoices are classified as letters, the Market Inspectorate of the Republic of Slovenia, which is responsible for supervising the implementation of the provisions of the first paragraph of Article 45 of the ZGD-1, took the position that issued invoices must also contain the prescribed components of Article 45. of Article ZGD-1. Therefore, we advise that, in addition to all the components defined by ZDDV-1, on the issued invoices, you should state the entire company and registered office of the company, the registration authority with which the company is registered, and the company’s registration number. Limited liability companies and joint-stock companies must also state the amount of the share capital and the amount of contributions not yet paid.

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[1] Lozar S. 2012. Writing business and official letters. Ljubljana: GZS Ljubljana, Center for Business Training.

[2] Companies Act. Official Gazette of the Republic of Slovenia no. RS, no. 65/09 – official consolidated text, 33/11, 91/11, 32/12, 57/12< /a>, 44/13 – Ord. US, 82/13, 55/15 and 15/17.

[3] Value Added Tax Act. Official Gazette of the Republic of Slovenia no. 13/11 – official refined text,  18/11, 78/11, 38/12, 83/12< /a>, 86/14 and 90/15.

[4] Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax

[5] Article 192 a of Council Directive 2006/112/EC: For the purposes of applying this section, a taxpayer who has a permanent establishment in the territory of the country the member state in which the tax is owed shall be considered a taxable person who is not established in that country, when the following conditions are met: (a) the taxable person makes a taxable supply of goods or services in the territory of that member state; (b) the business unit that the supplier or service provider has in the territory of that Member State does not participate in the supply of those goods or the provision of those services.

[6] Tax Procedure Act. Official list of RS no. 13/11 – official consolidated text, 32/12, 94/12, 101/13 – ZDavNepr, 111/ 13, 25/14 – ZFU, 40/14 – ZIN-B, 90/14, 91/15 and 63/16.

[7] Financial Administration of the Republic of Slovenia (2016). Value added tax invoices – more detailed description. Ljubljana: Financial Administration of the Republic of Slovenia.

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