Home / Publications / Draft amendments to the Tax Procedure Act (ZDavP-...

Draft amendments to the Tax Procedure Act (ZDavP-2H)


The draft Act amending and supplementing the Tax Procedure Act (ZDavP-2H) was published on the website of the Ministry of Finance at the end of October.

The main highlights of the draft law are the following:

  • Implementation of the FATCA Agreement
  • Use of a bound book of invoices

The Foreign Account Tax Compliance Act (FATCA) adopted in the USA has introduced for financial institutions the obligation of reporting on certain accounts. The Republic of Slovenia signed on 2 June 2014 the Agreement to Improve International Tax Compliance and to Implement FATCA specifying in detail the obligations of Slovenian financial institutions and Slovenia with regard to the FATCA implementation. The Agreement entered into force on 1 July 2014 and was published in the Official Gazette of the Republic of Slovenia – International Agreements, no. 8/14 (Official Gazette of the Republic of Slovenia no. 49/14). According to the Agreement, financial institutions in Slovenia will report to the competent authority in Slovenia (Financial Administration) the information on accounts of clients specified as certain US persons, which will be then forwarded to the competent authority in the USA.

The draft law is now regulating the technical implementation of the Agreement. It lays down the procedures of due diligence, the obligation to identify accounts and collect and report information to the tax authority. Financial institutions already have to report some information for tax determination in Slovenia and abroad, according to the tax legislation currently in place (i.e. including for international data exchange); however, the draft law expands reporting to the information on the accounts identified as those on which it is reported in accordance with the FATCA Agreement. Financial institutions will report for the first time to the competent Slovenian authority in 2015, namely the information concerning 2014.

The introduction of the bound book of invoices is a complete novelty aimed at improving the traceability of invoices issued in cash operations. According to the law currently in place, the entities issuing invoices may use either software and electronic devices or issue manually entered invoices. To ensure the recording of the correct information on invoices issued in bookkeeping and a printout of all changes of original data also for taxable persons issuing manually entered invoices, such persons will now have to use invoices from a bound book of invoices issued by the tax authority or another certified organisation (representative association). The bound book of invoices will contain a number of invoice forms printed, numbered and bound in a book. The tax authority will be able to keep records on bound books of invoices issued to a taxable person and improve the traceability of handwritten invoices.

The draft law introduces some novelties in electronic serving to natural persons, aligns some provisions on tax execution with the provisions on civil execution and lays down the method for calculating withheld personal income tax for personal supplementary work. These are only minor corrections or provisions concerning natural persons only.