Text file: 6783.txt
author: predlogi123
downvotes: 6
end consideration date: 2015-07-07
id: '6783'
number comments: 12
number views: 1946
proposal type: Competent authority response
response: "Response from the Ministry of Finance\nWith regard to the petition received\
  \ proposing to introduce a tax reduction on products made exclusively in Slovenia,\
  \ which would thus be competitive especially on the Slovenian market, which is currently\
  \ dominated by imports, and thus increase revenue within Slovenia, the following\
  \ reply is provided below from the point of view of the tax system, for which the\
  \ Ministry of Finance is responsible\nFrom the point of view of the functioning\
  \ of the VAT system, it should be borne in mind that VAT is not an appropriate instrument\
  \ for regulating the prices of goods and services offered by economic operators\
  \ on the market. Prices of goods and services are primarily formed on the basis\
  \ of supply and demand, as well as other competitive conditions. Consequently, a\
  \ reduction in the VAT on a particular good or service does not necessarily imply\
  \ a reduction in the price of that good or service.\nPursuant to the Value Added\
  \ Tax Act (Official Gazette of the RS, No 13/11-UPB3, 18/11, 78/11, 38/12, 83/12,\
  \ 46/13-ZlPRS1314-A, 101I13-ZIPRS1415, and 86/14, hereinafter referred to as the\
  \ VAT Act), Slovenia has a general VAT rate of 22% and a lower VAT rate of 9.5%,\
  \ which is applicable to supplies of goods and services listed in Annex ! to the\
  \ VAT Act.\nThe application of different VAT rates to supplies of goods depending\
  \ on their origin would be contrary to the fundamental principle of non-discrimination,\
  \ which must be taken into account in the design of the Slovenian VAT system, which\
  \ is also aligned with the VAT legislation in the area of the European Union.\n\
  This principle requires that equivalent goods or services be treated in the same\
  \ way under the VAT system, irrespective of whether they are produced in the domestic\
  \ tax territory, imported from a third country or obtained from another Member State\
  \ of the European Union. The principle of non-discrimination prohibits equivalent\
  \ goods or services from being treated differently depending on who the purchaser\
  \ or producer is. The best expression of the operation of this principle is precisely\
  \ the application of tax rates. It is necessary to ensure that a given rate of tax\
  \ (both the general rate and the lower rate) is applied to all equivalent products\
  \ and services.\nIn view of the above, the initiative to introduce a reduced VAT\
  \ rate for products made exclusively in Slovenia cannot be supported.\n \n "
response date: 2015-07-29
response due date: null
sent date: 2015-06-08
title: promotion of Slovenian products
upvotes: 13
url: https://predlagam.vladi.si/predlog/6783
