Value added tax.
The Act on Value Added Tax – ZDDV-1 in the sixth paragraph of Article 77 stipulates that when importing goods, VAT is paid as if it were an import duty, unless a taxable person who is the recipient of the goods and is identified as the VAT payer is designated for VAT purposes in Slovenia. The taxable person shall show the calculated VAT on the import of goods in the VAT return and pay the VAT within the period referred to in the first paragraph of Article 77 ZDDV-1, if, as the recipient of the goods, at the time of import, he provides at least the following information to the tax authority in the customs declaration:
- your VAT identification number, which is issued by the tax authority in Slovenia,
- the tax base as defined in Article 38 ZDDV-1,
- VAT rate,
- tax value.
Furthermore, in the seventh paragraph of the same article, it is stipulated that the recipient of the goods, who is not based in Slovenia and is identified for VAT purposes in Slovenia, must show the calculated VAT on the import of the goods in the VAT statement, if he appoints a tax representative identified for VAT purposes in Slovenia, who is jointly and severally liable for the payment of VAT on the importation of goods.
On the basis of the first paragraph of Article 3 of the Rules on the Implementation of the Value Added Tax Act – Rules , a branch office through which a taxpayer who does not have its registered office in Slovenia carries out business in Slovenia acts in the name and on behalf of a taxpayer who does not have a registered office in Slovenia, where he must use the company name of the parent company, its registered office and its name.
In accordance with the second paragraph of Article 4a of the Rules, in connection with the second paragraph of Article 4 of these Rules, a branch cannot be a tax representative of a foreign person.
When a branch of a foreign company with an address in Slovenia appears as the importer – recipient of the goods in the customs declaration , it is therefore a taxable person based outside Slovenia. The branch acts in the name and on behalf of a foreign company, and must use the company name (name) of the parent company, its headquarters and its own company. In accordance with Article 683 of the Companies Act – ZGD-1 , the foreign company with all its assets is responsible for all obligations arising from the operations of the branch. In the event of the termination of the parent company, the foreign branch will also cease to operate as a result (Article 683 a of ZGD-1).
Based on the above, the branch may be allowed to calculate VAT on imports via VAT calculation only if it previously appoints a tax representative who is jointly and severally liable for the payment .
Source: gov.si
