Legal order of Slovenia in The European union 
 Tax consulting and representing - II. part 

EFFECTIVE SOLUTIONS FOR THE EXEMPTION FROM THE VAT SYSTEM for bodies governed by public law, acting as a public authority
(More in: Legal practice (Pravna praksa). Ljubljana: GV Založba, no. 15, 15. April 2010, p. 14-16.)  

This paper presents a universal solution applicable to any member country of the European union. It is a legal method of direct application of supra-national acts, regulations of the European union. This is based directly on the provisions of Directive 77/388/EEC, Council Directive 2006/112/EC and binding interpretation of these provisions, as applied in the case law of the Court of Justice of the European union.

Activities or transactions of bodies governed by public law, acting as a public authority, may, with the fifth paragraph  of Article 5 of Value Added Tax Act, be exempt from the VAT system as a tax-free, if they are carried out under the conditions laid down for those services and if it is unlikely that such an exemption leads to distortions of competition. As on 1. January 2010 the tax system in Slovenia stringed significantly and increased powers to tax authorities, it is to recomend that taxable pearsons lodge a request for binding information to the tax office. This will limit the business risk. 

(The paper concluded in January 2010.)

Author: Ž. Stupica (c)

Sources

1. Act ratifying the Treaty of Lisbon amending the Treaty on European union and the Treaty establishing the European Community. Ljubljana: Official Journal of the Republic of Slovenia - International Treaties, no. 4/2008 and corr.
2. Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. Luxemburg: Official Journal of the EU, L 347, 11. December 2006, p. 1-118.
3. Explanatory note of the Tax administration of the Republic of Slovenia, no. 4230-224/2008-1 of 17. November 2008.
4. Judgement of the Court of Justice of the European union, case 107/84 of 11. July 1985.
5. Judgement of the Court of Justice of the European union, case 235/85 of 26. March 1987.
6. Judgement of the Court of Justice of the European union, joined cases 231/87 and 129/88 of 17. October 1989.
7. Judgement of the Court of Justice of the European union, case C-260/98 of 12. September 2000.
8. Judgement of the Court of Justice of the European union, case C-446/98 of 14. December 2000.
9. Judgement of the Court of Justice of the European union, case C-462/05 of 12. June 2008.
10. Judgement of the Court of Justice of the European union, case C-174/06 of 25. October 2007.
11. Opinion of Advocate general M. Poires Maduro, delivered on 12. June 2008 to the Court of Justice of the European union, case C-288/07.
12. Sixth Council Directive of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes – Common system of value added tax: uniform basis of assessment. Luxemburg: Official Journal of the EU, L 145, year 1977, p. 1.
13. Tax procedure act (Zakon o davku na dodano vrednost - ZDavP-2). Ljubljana: Official Journal of the Republic of Slovenia, no. 117/2006 and seq.
14. Tax procedure act (Zakon o davku na dodano vrednost - ZDavP-2B). Ljubljana: Official Journal of the Republic of Slovenia, no. 110/2009 and corr.
15. Value added tax act (Zakon o davku na dodano vrednost - ZDDV-1). Ljubljana: Official Journal of the Republic of Slovenia, no. 117/2006 and seq.
16. Value added tax act (Zakon o davku na dodano vrednost - ZDDV-1B). Ljubljana: Official Journal of the Republic of Slovenia, no. 85/2009.

Literatura:

1. Trstenjak, Verica: Legal entities (Pravne osebe). Ljubljana: GV založba, 2003.