tax alert april 2011 - pwcsonja omerza +386 1 5836 023 [email protected] thomas dane +386 1...
TRANSCRIPT
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Tax Alert
Slovenia - No. 1/11April 2011
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PwC
Act on prevention of late payments andamendments to VAT ActIn order to try to reduce widespreaddefaults on payments to suppliers, a newAct on prevention of late payments hasrecently been introduced.
The Act states that:
• the deadline for settlement of liabilitiesshould not be longer than 60 days, or 30days for public bodies (e.g. public funds,public agencies, public institutes). Longerdeadlines may however be agreed on thebasis of a special agreement;
• a Slovene VAT payer may report undueliabilities to AJPES for multilateralreconciliation. Under multilateralreconciliation payables and receivablesbetween companies using the system willbe offset;
• if an entity subject to Slovene VAT doesnot settle its liabilities on time and theliability is not secured by a guarantee (billof exchange excluded), the reporting ismandatory. The multilateralreconciliation will then be done on amonthly basis;
• a renewed register of challenged bills ofexchange was introduced. This registerwas introduced with the Bill of ExchangeAct, but is now renewed and is directedand centralized by AJPES, givinginformation to all market participantsabout which debtors are not fulfillingtheir payment obligations.
Simultaneously, amendments to VAT Actwere adopted which define that:
• if a taxable person does not pay aliability towards a supplier within thedeadline, it will be obliged to increase itsVAT liability by the amount previouslydeducted in relation to the supply which
has not been paid for. The VAT can thenbe deducted again after the liability issettled. The correction of deducted VATis not obligatory if a taxable personreports the unsettled liabilities formultilateral reconciliation;
• a taxable person is obliged to notify thetax authorities about all corrections ofinput VAT under these provisions when itsubmits its VAT returns electronically.
The aim of the tighter regulations is toencourage companies to make promptpayments and thus to improve theliquidity of creditors.
The Act on prevention of late paymentsand the amendments to the VATlegislation were published in the OfficialGazette on 15 March 2011 and came intoforce on 16 March 2011.
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For further information please contact:Marijana Ristevski
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PwC
We are where you need us to be
DirectorClare Moger+386 1 5836 [email protected]
ManagersEvelina Novak+386 1 5836 [email protected]
Marijana Ristevski+386 1 5836 [email protected]
Sonja Omerza+386 1 5836 [email protected]
Thomas Dane+386 1 5836 [email protected]
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This Tax Alert is produced by PricewaterhouseCoopers Tax Department.
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