VAT clause linked to Article 94 ZDDV-1 or Article 42 ZDDV-1?
Since dilemmas often arose in the past as to which is the right VAT clause on the accounts of small taxpayers who do not have an identification number for value added tax and at the same time perform an exempted activity, the Association of Accountants, Financiers and Auditors of Slovenia adopted the following position specifically related to health institutes, which also applies mutatis mutandis to all other legal entities with similar operations and the status of a small taxpayer.
“Health care facilities that are not identified for VAT (they are small taxpayers) have recently been frequently addressing the RFR Association with a question regarding the clause that should be stated on the invoices issued for their services. They believe that the clause “VAT exempt according to Article 42 ZDDV-1” is stated.
Answer: The clause “VAT exempt according to Article 42 ZDDV-1” is misleading in the opinion of the RFR Association. The legal basis (that is, the reason) for a small taxpayer not to calculate VAT is in Article 94 of the ZDDV-1, and not in Article 42 of the same law. Only taxpayers identified for VAT refer to it. The clause on the accounts of small taxpayers is actually not prescribed at all (Article 141 P-ZDDV-1), but it is recommended that small taxpayers still explain why VAT is not calculated. They can do this with the clauses “I am not a taxable person according to Article 94 ZDDV-1” or “I am not liable for VAT” or provide another similar reference.
For small taxpayers, a meaningful reference to Article 94 ZDDV-1.
The above means that it makes sense for a small taxpayer, i.e. a taxpayer who has not obtained a VAT ID number, to use a clause on the invoice that refers to the exemption under Article 94 of the ZDDV-1, since the fact that he does not have an ID number for VAT, it means that his taxable income does not reach EUR 50,000 from paragraph 1 of Article 94 of the ZDDV-1, and he is therefore a small taxpayer. If, however, he had obtained a VAT ID number and thus performed both taxable and non-taxable activities, the invoices in the case of medical services provided would have a suitable VAT clause that refers to the exemption from Article 42 ZDDV-1.