For many entrepreneurs, VAT is the first serious administrative milestone. Up to a certain turnover you can operate as a small taxable person without VAT, and then registration becomes mandatory. Let’s look at where the threshold lies in 2026, how registration works and when VAT can even be worth it voluntarily.
The threshold: €60,000 of taxable turnover
Mandatory VAT registration is triggered once your taxable turnover exceeds €60,000 (the threshold was raised from €50,000 on 1 January 2025). Under the new special scheme for small enterprises, once you exceed the threshold during the year you may, under certain conditions, continue to apply the exemption up to a total of €66,000 of turnover in the current year, after which registration is unavoidable. You submit the request using the DDV-P2 form via the eDavki portal or the SPOT portal.
Note: the threshold is not calculated on a pro-rata basis. What counts is the turnover over the last 12 months, not the calendar year – so monitor your turnover on an ongoing basis, not just at year-end.
Mandatory or voluntary registration
- Mandatory: when turnover exceeds the threshold. You must register in time – if you are late, the tax authority (FURS) may charge VAT retroactively, which means you pay the 22% out of your own pocket.
- Voluntary: you can also register for VAT before reaching the threshold. The decision binds you for a certain period (as a rule 60 months), so think it through carefully.
When voluntary registration pays off
- Your clients are VAT payers: businesses don’t care whether you charge VAT, since they deduct it. From that moment on, however, you deduct input VAT on your own purchases.
- Major investments on the horizon: equipment, computers, a vehicle – a 22% deduction on larger purchases quickly outweighs the extra administration.
- Credibility with larger clients: a VAT ID number looks more “serious” to corporate and foreign clients.
If, however, you sell mainly to natural persons (end consumers), registering for VAT makes your services 22% more expensive or reduces your margin – in that case it is better to stay below the threshold as a small taxable person.
What registration means in practice
- On your invoices you charge 22% (or the reduced rate) and state your VAT ID number.
- You submit a DDV-O VAT return monthly or quarterly via eDavki.
- You keep records of issued and received invoices and deduct input VAT.
- Deadlines are fixed – a late return or payment means interest and fines.
Atypical taxable person: a special case for EU services
If you provide services to taxable persons from other EU countries (or receive them from such persons), you need a VAT ID number even before the threshold – as a so-called atypical taxable person. This registration applies only to cross-border transactions: on the domestic market you continue to operate without VAT as a small taxable person. More detail in our article on working for foreign clients.
Turnover growing? A good problem to have
The VAT threshold means your business is really breathing – €60,000 of annual turnover is no longer a hobby. It is precisely at this stage that most members join the makerSP_CE coworking space: costs stay manageable (pricing from €135 incl. VAT per month, a tax-recognised expense), plus you get a meeting room for client meetings and a community of entrepreneurs who have already crossed the VAT threshold and know which accountant has it under control.
Frequently asked questions
What happens if I exceed the threshold and don’t register?
FURS can charge VAT retroactively from the moment you should have been registered – together with interest and a fine. Since you generally cannot charge clients VAT retroactively, you pay it out of your own pocket. So monitor your turnover monthly.
Does all turnover count towards the threshold?
Taxable turnover counts – the value of supplies of goods and services carried out. Loans received or your personal transfers, for example, do not count. If you combine activities, it is better to check the calculation with an accountant.
Can I also deregister from the VAT system?
Yes, if your turnover falls below the threshold and you meet the conditions – but not immediately. With voluntary registration the decision binds you for a longer period (as a rule 60 months), so registering “just to try” is not a good idea.
Conclusion
Up to €60,000 of turnover you operate simply, without VAT; above the threshold registration is mandatory, and below it it makes sense mainly when you work with businesses or invest heavily. The key is to monitor your turnover continuously and plan your registration, rather than being caught out by the threshold. And you already know where to find the desk where you’ll achieve that growth – makerSP_CE at Pivovarniška 6.
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