On 7 October 2026, the National Assembly’s Committee for the Supervision of Public Finances held a contentious session debating the tax revenue assumptions embedded in the government’s proposed 2027 budget. The discussion centered on projected yields from corporate income tax (CIT) rate maintenance at 19%, personal income tax (PIT) bracket indexing, and a proposed digital services tax (DST) alignment with OECD Pillar One Amount A timelines. Opposition members challenged the realism of VAT gap reduction targets, citing insufficient enforcement capacity at the Financial Administration (FURS). The committee’s non-binding opinion will influence the plenary vote scheduled for late November. Stakeholders should note that the budget includes a sunset clause for the current 5% reduced VAT rate on district heating, reverting to 22% standard rate from 1 January 2027 unless extended.
Key Takeaways
- VAT Rate Reversion Confirmed: The planned return to 22% VAT on district heating from 1 January 2027 will increase household and commercial energy costs, requiring updates to billing systems and vendor contracts by Q4 2026.
- Digital Services Tax Contingency: The budget pencils in DST revenue contingent on OECD multilateral convention ratification. If Pillar One stalls, Slovenia may activate a unilateral 3% DST on large tech firms retroactively, creating double-tax treaty conflicts.
- Enforcement Investment Gap: FURS resource constraints cited by committee members signal continued reliance on voluntary disclosure programs rather than audit expansion for VAT gap closure, favoring cooperative compliance strategies.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement