For Slovenian sole proprietors, foreign clients are often the best business: a larger market, higher rates, better payment discipline. Administratively, however, working across the border raises a few questions that domestic business doesn’t – mainly around VAT. The good news: the rules are clear and, once set up, a routine.
EU clients (B2B): a VAT ID number even before the threshold
If you provide services to taxable persons (companies) from other EU countries, you need a VAT ID number regardless of the €60,000 threshold – you obtain it as a so-called atypical taxable person using the DDV-P2 form via the eDavki portal, and you do so before your first supplied service. Important: this registration applies only to cross-border transactions. On the domestic market you remain a small taxable person without VAT until you exceed the threshold.
An invoice for an EU company: the reverse charge
For B2B services within the EU the general rule is: the place of taxation is the client’s registered office, and VAT is accounted for by the recipient at their national rate. You don’t charge Slovenian VAT on the invoice; instead you add the clause: “Reverse charge – obrnjena davčna obveznost po 196. členu Direktive Sveta 2006/112/ES” (reverse charge under Article 196 of Council Directive 2006/112/EC). On the invoice, state both your and the client’s VAT ID number – check the client’s in the VIES system before issuing.
The RP-O report: don’t forget it
For services supplied to EU taxable persons, you submit a monthly recapitulative statement (RP-O) via eDavki (atypical taxable persons also submit a DDV-O VAT return for periods with EU transactions). The report is administratively simple, but mandatory – the tax authority (FURS) cross-checks the data against other countries’ reports, so it won’t overlook missing months.
Clients from third countries (USA, UK, Switzerland …)
Services to business clients outside the EU are generally outside the Slovenian VAT system: you don’t charge VAT on the invoice and you state the clause on the place of taxation being the client’s registered office (in practice, a reference to Article 25 of ZDDV-1). A VAT ID number and an RP-O report are not required for third countries. Since the rules depend on the type of service and the client’s status, check the combinations with an accountant.
Natural persons abroad: different rules
The above rules apply to B2B. For services to end consumers (B2C) abroad, the place of taxation is often Slovenia, while for digital services to consumers in the EU special rules apply (the OSS scheme). If you sell to natural persons across the border, take an hour with an accountant before your first invoice – this is where most of the pitfalls are.
Payments from abroad: don’t leave money to fees
Bank transfers within the EU (SEPA) are cheap and fast. With clients from third countries or payments in dollars and pounds, however, a traditional bank takes a noticeable share through exchange rates and fees – here providers such as Wise and Revolut Business pay off, offering local accounts in foreign currencies and conversion close to the mid-market rate. Issue the invoice in the currency of the contract, but book the amount in euros at the exchange rate on the invoice date.
Income tax: worldwide income
As a Slovenian tax resident, you declare all your worldwide income in Slovenia – including earnings from foreign clients. For the sole proprietorship activity itself, nothing changes in practice: income from foreign invoices goes into the same tax return as domestic income. Care is needed only if you were to physically work abroad for a longer period – then the rules on residency and double taxation treaties come into play.
Time zones as an advantage
Working for clients abroad means meetings at unusual hours – American clients wake up as the Slovenian office empties. That is precisely why makerSP_CE has 24/7 access with your own keys: you take a 7 p.m. call from a meeting room with a stable connection, not from your living room. By the way, membership per the price list is a tax-recognised expense – even when you work for California.
Frequently asked questions
Do I need a special sole proprietorship for foreign clients?
No. The same sole proprietorship can invoice both domestic and foreign clients – you only need to arrange a VAT ID for EU B2B services and the correct clauses on your invoices.
In what language and currency should I issue the invoice?
The invoice can be bilingual (Slovenian-English) – for FURS you need the Slovenian version or a translation. Currency is a matter of agreement; for bookkeeping you convert the amount into euros at the exchange rate on the date the service was supplied or the invoice date.
What if an EU client doesn’t have a valid VAT ID number?
Then the rules for end consumers (B2C) apply to them, which generally means charging VAT. So check every new EU client’s VAT ID number in the VIES system before the first invoice and keep the confirmation.
Conclusion
Working abroad is not an administrative jungle: for EU companies arrange a VAT ID as an atypical taxable person, the reverse charge clause belongs on your invoices, you submit RP-O monthly; third countries are generally outside VAT; you optimise payments with Wise or Revolut. Set it up once, then focus on what foreign clients really care about – your work.
Reserve your spot at makerSP_CE
Coworking makerSP_CE, Pivovarniška ulica 6, Ljubljana (next to Tivoli Park). A fixed price, no notice period, 24/7 access and free parking.
Web: makerspace.si | E-mail: rezervacije@makerspace.si | Phone: +386 30 393 405
Related reading
- How to Issue an Invoice: Mandatory Elements, Clauses and Common Mistakes
- When to Register for VAT: Threshold, Obligations and When It Pays Off
- How to Set Your Hourly Rate: A Formula in 4 Steps