Value Added Tax was introduced on July 1st 1999 and replaced the old Sales Tax System.

There are two tax rates applied:

• 20 %, as a general rate and
• 8,5 % as a lower rate.

Customs collect VAT on imports into the country, together, and in a similar way as the other import duties. Registered users of the VAT system can deduct the amount paid as the incoming VAT in their tax statement for the accounting period.

Passengers entering Slovenia from third countries are exempted from paying VAT on goods, that are personal belongings and with no commercial value, but not exceeding the amount of 175 EUR.

Exporters can claim back the amount of VAT paid so far, and the same applies to foreign passengers leaving Community and exporting goods. They get VAT refunded once the goods have left the customs territory of Community, and the Customs authorities have confirmed that the declared goods have physically left the customs territory of the Community.