Area: Finance
Competent authority: MF
EZU URL: .nan
Initiative ID: 92
Initiative accepted and completed: '2013-03-29'
Initiative classified in EZU: .nan
Initiative forwarded in response: '2013-02-27'
Initiative published: '2013-02-27'
Initiative submitted: '2013-02-27'
Response from the competent authority: In your e-mail of 28.2.2013, you ask us for
  our opinion on reducing the time limit for issuing a VAT identification number.
  You have received a proposal from the Ministry of Justice and Public Administration
  for administrative relief or simplification of the procedures - 'Initiative 92'
  - eVEM points - a proposal to reduce the legal time limit for issuing a VAT ID to
  two working days.The deadline for the tax authority to decide on an application
  for a VAT identification number is laid down in Article 130(4) of the VAT Code,
  according to which the tax authority must decide on the application no later than
  the last day of the month following the month in which the application is submitted.
  In the case of taxable persons who are not established in Slovenia, Article 131
  of the PZDVV sets different deadlines.The deadline for issuing a VAT identification
  number set out in Article 130 of the PZDVV is therefore the deadline by which the
  tax authority must decide on the issue of the identification number and within which
  it may carry out all the procedures necessary to establish the eligibility for the
  issue of a VAT identification number. With the accession of Slovenia to the EU and
  the abolition of customs borders, where tax controls on the movement of goods to
  and from Slovenia were also implemented, the system of tax controls on the charging
  and payment of VAT has undergone significant changes in the taxation of intra-EU
  goods movements. This, together with the enlargement of the market and the free
  movement of goods and services, has increased the potential for tax evasion, among
  other things, and we are faced with systemic financial fraud in the form of VAT
  evasion of the carousel type. This type of evasion is characterised by the organisation
  of repeated (real or fictitious) purchases and sales of goods within the EU by a
  group of companies, of which there is always one "missing trader" company, which
  is key to the implementation of this type of evasion. The carousel mechanism works
  as long as the missing trader company has a valid VAT identification number.In order
  to combat this type of tax evasion, the European Commission has adopted certain
  recommendations on the measures to be taken to effectively control VAT and thereby
  safeguard the public interest in terms of preventing VAT evasion through the misuse
  of VAT identification numbers. Based on experience to date, the most effective control
  measures are identified as the so-called preventive measures already at the point
  of registration or issue of VAT identification numbers. Therefore, in the process
  of issuing a VAT identification number, it is necessary to be alert to possible
  misuse, which is why it is necessary to take all necessary measures to ensure that
  identification numbers are issued only to taxable persons who are actually carrying
  out, or intend to carry out, an economic activity.The VAT-P2 form, a specimen of
  which can be found in Annex VI to the VAT VAT Code, which taxable persons use to
  submit an application for the issue of a VAT identification number via the eTaxes
  system, also contains the date of the intended start of the VAT identification,
  which is to be determined by the person liable for VAT purposes.The VAT-P1 form,
  the specimen of which can be found in Annex VI to the VAT Code, which is to be submitted
  to the VAT Code system via the eTaxes system, contains the date of the intended
  start of VAT identification, which is to be determined by the person liable. In
  most cases, the tax administration of the Republic of Slovenia identifies the taxable
  person with this green date, if it is possible to do so and to establish that the
  taxable person is actually carrying out or intends to carry out an economic activity
  at that time.According to data from the tax records, from 1 January 2010 to 28 February
  2013, the DURS identified 30,944 taxable persons for VAT, and the average time from
  the receipt of the application until the issue of the VAT ID was 12 days. For example,
  in the last year and a half alone, more than 800 refusal decisions were issued because
  taxable persons did not provide the relevant supporting documents, did not prove
  the purpose of their activity or did not provide an appropriate insurance instrument.On
  the basis of the above, we oppose the proposal to reduce the legal time limit for
  issuing a VAT ID to two working days, as it would not be possible to carry out the
  appropriate checks on the application for a VAT ID within such a time limit, and
  would therefore not be able to follow the recommendations of the European Commission
  as regards the implementation of controls on the issue of VAT IDs, and thus to prevent
  VAT evasion through the misuse of VAT IDs. As already mentioned, the tax administration
  tries to respect as far as possible the deadlines indicated by taxable persons in
  their application for a VAT ID. However, as can be seen from the above, there are
  also many applications which do not meet the criteria for the granting of a VAT
  ID or which are made with the intention of abusing the VAT ID, and taxable persons
  must therefore also be concerned to ensure that they submit their application for
  a VAT ID on time, in relation to the average time taken for the issuing of a VAT
  ID, and thereby ensure that it is issued in good time for the purposes of the VAT
  ID issue procedure.
Text file: 92.txt
Title: Setting up a business via eVEM
URL: https://www.stopbirokraciji.gov.si/pobuda/?st=92
