An increasing number of Slovenian companies engage in cross-border transactions with foreign customers and suppliers. However, VAT treatment of international transactions is often incorrect and errors are frequently discovered only during tax audits or corrective procedures.
VAT rules for cross-border transactions differ significantly from domestic transactions and require careful application.
Where do mistakes most often occur?
Common issues include:
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incorrect determination of the place of supply,
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improper application of reverse charge mechanisms,
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missing or incorrect VAT clauses on invoices,
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incorrect reporting in VAT returns and recapitulative statements.
What do tax authorities review?
During audits, FURS focuses on:
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correct VAT treatment of issued and received invoices,
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consistency with VAT records,
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proper reporting of EU and third-country transactions.
➡️ Practical insight: VAT errors in cross-border transactions are often systematic and repeat over multiple periods.