On June 3, 2016, it was published in the Official Gazette of the Republic of Slovenia, no. 39/16, published Rulebook on Amendments and Supplements to the Rulebook on the Implementation of the Value Added Tax Act, which enters into force on June 4, 2016. From the point of view of administrative simplification in relation to the operation of non-profit organizations, including non-governmental organizations or societies, the new sixth , the seventh and eighth paragraphs of Article 143 of the rulebook provide an exception from the obligation to issue invoices in accordance with the second paragraph of Article 81 of the ZDDV-1, namely:
Sixth paragraph of Article 143 of the Rules
Point a) of the new sixth paragraph of Article 143 of the Rules
According to point a) of the new sixth paragraph of Article 143 of the Rulebook, there is an exception from the obligation to issue invoices for supplies of goods and services to persons who are not taxable persons (natural persons – final consumers who do not perform activities), if the value of taxable (taxed and exempt) deliveries in the current calendar year do not exceed, or are unlikely to exceed, the amount of 5,000 euros, provided that such deliveries are made by:
– non-profit organizations from point 11 of the first paragraph of Article 42 ZDDV-1 or
– other taxpayers (persons who are not entities under public law, for example associations), provided that they cumulatively meet the conditions:
a) their goal is not to make a profit, but if they do make a profit, they must not distribute it, but must dedicate it to the further provision or improvement of services;
b) they are managed and led mostly by volunteers who themselves or through other persons are not directly or indirectly involved in the results of these activities;
c) charge prices approved by the competent authorities, or prices that are not higher than such approved prices, or for supplies that do not require price approval, prices that are lower than those for
similar supplies are charged by taxpayers who calculate VAT.
On the basis of point a) of the new sixth paragraph of Article 143, the exception from the obligation to issue invoices for all supplies of goods and services applies only to the smallest taxpayers, which are traditionally entirely or predominantly voluntary (volunteer) organizations. The above does not mean that the condition for exemption from issuing invoices is that the supplies of goods or services performed by these non-profit organizations are exempt in accordance with point 11 of the first paragraph of Article 42 of the ZDDV-1 or in accordance with Article 43 of the ZDDV- 1, but these non-profit organizations can also perform any other taxed or exempt supply of goods or services, to members or non-members, for which they do not have to issue an invoice in accordance with the VAT legislation according to the new point a) of the sixth paragraph. The exception from the obligation to issue invoices applies both in the case of occasional events and in the case of continuous deliveries (several times a year) or according to a predetermined schedule (e.g. every month, a few days a month, every certain day/days of the week or often during seasons, etc.).
Thus, according to point a) of the new sixth paragraph, non-profit organizations from point 11 of the first paragraph of Article 42 of the ZDDV-1 are entitled to an exemption from the obligation to issue an invoice. These are those non-profit organizations (persons under public law) that are established with goals of a political, trade union, religious, patriotic, philosophical, humanitarian or civic nature. In these cases, these are non-profit organizations that perform:
– trade union activity under the code of the standard classification of activities: S/94.2;
– activity of religious organizations under the code of the standard classification of activities: S/94.91;
– activity of political organizations under the code of the standard classification of activities: S/94.92;
– activity of other member organizations under the code of the standard classification of activities: S/94.99.
In addition to non-profit organizations (public law entities), private law entities (e.g. associations) that meet the conditions for exemption from the obligation to issue invoices and will perform:
a) supplies to its members as reimbursement for membership fees or
b) deliveries in cases where membership fees are not collected (e.g. in the case of occasional or regular activities of pension societies, mountaineering societies, sale of calendars of fire brigade societies, etc.).
This means that this provision covers situations when e.g. the association for pensioners organizes a trip that is fully financed from the amount of the membership fee, as well as cases when the trip is fully financed by the association member himself or a person who is otherwise not a member of the association, but takes part in an excursion organized by the association (e.g. an excursion is attended by a pensioner who is a member of the association for pensioners and her retired friend who is not a member of this association or her family member (grandchild, child) who is neither a pensioner nor a member of this association). Situations are also covered when the trip up to a certain level is covered by the membership fee, and the difference up to the full price is paid by the association member himself. Situations are also included, when e.g. the mountain association organizes hikes for a small number of hikers ikov every first Sunday of the month according to a predetermined program; an association of drug addicts, which organizes a joint gathering for its members five times a year; the village cultural association, which prepares an amateur theater or musical performance once a month; an association against animal cruelty, which organizes an auction of products or donated items to collect funds for homeless animals, which is a regular activity of the association, even if it is not scheduled in advance, etc.
Point b) of the new sixth paragraph of Article 143 of the Rules
Non-profit organizations or associations whose supplies of goods and services will exceed the threshold of 5,000 euros of taxable supplies may, under certain conditions, be entitled to an exemption from the obligation to issue invoices for certain supplies based on point b) of the new sixth paragraph of Article 143 of the Rules. After this point, an exemption from the obligation to issue invoices is additionally provided for supplies of goods and services in connection with fundraising events, provided that such supply:
– done by people:
a) whose activities are exempt from paying VAT in accordance with points 1, 6, 7, 8, 11, 12 or 13 of the first paragraph of Article 42 ZDDV-1 (hospitals, social care institutions, including homes for the elderly, kindergartens, schools, non-profit organizations from point a), non-profit organizations related to sports-related services and cultural organizations related to cultural services),
b) who meet the conditions set out in Article 43 of the ZDDV-1 (these persons must first submit a notification to the tax authority in accordance with Article 43 of the ZDDV-1 in order to be exempt from paying VAT),
– they organize the event casually and exclusively for their own benefit and
– it is unlikely that such exemption leads to distortion of competition.
This means that the exemption from the obligation to issue invoices applies, for example, to for deliveries of goods at school bazaars and deliveries made by the volunteer firemen’s association at the firemen’s festival (e.g. tickets and other supplies), if they are used to raise funds for their activities (e.g. they organize a lucky draw, where for the purchased “lucky ticket” you receive certain products donated to the association by companies or individuals, and the money collected from the sold lottery tickets is intended for the association). However, supplies of goods and services performed by the caterer at the firemen’s party on his own behalf are not covered. The value of the supplies made in these cases is not limited, and there are no prescribed additional records of the supplies made in connection with such fund-raising events (applies only to persons carrying out certain activities that are exempt; fund-raising events are organized by these organizations casually and exclusively for its own benefit; it is unlikely that such an exemption leads to a distortion of competition).
Seventh paragraph of Article 143 of the Rules
Persons from point a) of the new sixth paragraph of Article 143 of the Rulebook, whose taxable (taxed and exempt) supplies in the current calendar year exceed the amount of 5,000 euros (that is, they no longer meet the conditions for exemption from the obligation to issue invoices according to point a) of the sixth paragraph), can claim an exception from the obligation to issue invoices only for supplies of goods and services in accordance with point b) of the sixth paragraph of Article 143 of the Rules.
Eighth paragraph of Article 143 of the Rules
The new eighth paragraph of Article 143 stipulates that the taxpayer must provide information in his bookkeeping for supplies that are exempt from the obligation to issue invoices.
Explanation of FURS regarding other regulations and tax certification of invoices
We clarify that the exemption from the obligation to issue invoices is provided only for VAT purposes, but not for other purposes. If the obligation to issue an invoice is prescribed on the basis of other legislation, an invoice must be issued. The above means that for supplies for which the VAT legislation provides an exemption from the obligation to issue invoices, there is no obligation to certify invoices according to the law governing tax certification of invoices.
Source: FURS
Questions and answers FURS