Special arrangement for foreign taxable persons, who occasionally perform services of international road passenger transport
We would like to inform you that for the period from 1 April 2015 onwards a special arrangement is introduced for foreign taxable persons, who occasionally perform services of international road passenger transport on the territory of Slovenia. Taxable persons will be able to submit claims for acquisition of VAT identification numbers (DDV-P3 form) from 1 March 2015 onwards.
This special arrangement does not apply for regular (scheduled) road passenger transport.
Application of this special arrangement is optional. It represents simplification of procedures for settlement and paying VAT on services in connection with international occasional road transport of passengers on the territory of Slovenia, which are performed by transport operators, taxable persons established in other Member States or third countries with transport means, which are not registered in Slovenia, and they don’t claim VAT deduction or VAT refund and they don’t perform any other transactions, which would be subject to taxation with VAT in Slovenia. It will come into force from 1 April 2015 onwards.
An exception is defined from the obligatory appointment of the tax representative for taxable persons established in a third country or on a third territory, which will use this special arrangement (in connection with Article 76 of the ZDDV-1).
For the purpose of application of this arrangement it is defined that occasional road transport of passengers means occasional transport of passengers in road transport as it is defined in the legislation, which arranges road transport. Occasional transport of passengers in road transport is transport, which does not classify as public regular transport nor as special regular transport and at which the group of passengers specified in advance is transported under conditions, which are agreed with the contract between the transport operator and the ordering party of the transport.
It is also precisely defined that the international road transport of passengers is the transport at which the place of departure or arrival of the transport means is outside Slovenia.
Taxable persons, who fulfil conditions for application of this special arrangement and who decide to apply it, they shall apply this special arrangement for at least one tax period, i.e. as a rule a calendar year.
It is defined that application of this special arrangement and general arrangement of VAT settlement in the same calendar year exclude each other. This means that if taxable persons decide for application of the special arrangement in the specific calendar year, during the same year they cannot leave the special arrangement and move to settlement of VAT on the basis of general rules, except if they fail to meet conditions for application of the special arrangement (they perform the second or other transactions, which are subject to VAT in Slovenia according to the general arrangement).
In cases of cessation of application of the special arrangement the tax period is shorter than a calendar year, so in this case taxable persons will use the special arrangement until the day of cessation of application of this special arrangement, although within the same calendar year they will not be able to use the special arrangement anymore (even if later they will fulfil conditions for application of this special arrangement).
If taxable persons cease to apply the special arrangement during the calendar year, but they will perform other supplies on the territory of Slovenia during the same calendar year, for which they shall charge VAT according to the general arrangement, they will be obliged to apply the general arrangement until the end of the same calendar year and in the same calendar year they will not be able to re-apply the special arrangement.
Taxable persons, who opt for application of the special arrangement and fulfil conditions for its application, submit claims for issuing of the tax number to the tax authorities if the tax number has not been issued to them yet and identification number for VAT before beginning of performing services of occasional road transport of passengers on the territory of Slovenia.
At receipt of claims the tax authorities send confirmation of the claim receipt to taxable persons in the electronic form, on the basis of which taxable persons may perform transport (although they haven’t received tax and/or identification numbers for VAT yet). In 8 days after receipt of complete claims taxable persons electronically receive notices on the assigned identification number. At performing occasional transport of passengers taxable persons shall have the certificate in the vehicle or a copy of this certificate that they are identified for VAT purposes or certificate of the tax authorities that the claim has been submitted for issuing VAT identification number (until VAT identification number is assigned to them). It will be possible to file claims for issuing of tax numbers and VAT identification numbers from 1 March 2015 onwards.
The tax authorities in certain cases exclude taxable persons from the special arrangement with a decision.
Reporting transport is also defined, i.e. taxable persons shall before performing transport in Slovenia inform the tax authorities about this.
Taxable persons, who use this special arrangement, shall submit the special VAT return (DDV-O-OP form) in the electronic form to the tax authorities.
Taxable persons submit special VAT returns (DDV-O-OP form) to the tax authorities for the tax period of a calendar year, i.e. until the last working day of the next month after expiry of the tax period, which means until the last working day in January of the current calendar year for the previous calendar year, in which the obligation for VAT settlement occurred. For taxable persons, who cease to use the special arrangement during the year, the tax period ends on the day of cessation of application of the special arrangement.
VAT in connection with performing international occasional road transport of passengers shall be paid at the latest within the time limit, in which the special VAT return shall be submitted.
Keeping records on performed services according to this special arrangement is also prescribed for taxable persons.