Slovenia updates VAT rate guidance: Clarifications for Waste Management, Public Hygiene and Retail Businesses

Slovenia's Financial Administration updated its VAT guidance, clarifying reduced VAT treatment for waste management and public hygiene services. VAT rates remain unchanged at 22%, 9.5% and 5%, but businesses should review the classification of affected goods and services.

In October 2026, the Slovenian Financial Administration (FURS) published the 15th edition of its official VAT rate guidance, Stopnje DDV, providing updated explanations of how VAT rates should be applied to different goods and services.

The update does not introduce new VAT rates or change Slovenia's existing VAT structure. Instead, it clarifies how certain supplies should be classified and which transactions qualify for reduced VAT rates.

The most important October update concerns public hygiene and waste-management services, particularly the application of the reduced 9.5% VAT rate. FURS updated section 2.15.7 of its guidance to align the explanation with Article 59 of the Rules implementing the Slovenian VAT Act (ZDDV-1). The underlying regulatory amendments had already entered into force on January 1, 2025. Therefore, the October publication represents an administrative clarification of existing requirements rather than a new legislative obligation.

Slovenia continues to apply three main VAT rates under the VAT Act (ZDDV-1):

• 22% standard VAT rate: Applies to most goods and services unless a reduced rate or exemption is specifically permitted.
• 9.5% reduced VAT rate: Applies to qualifying goods and services listed in Annex I, including certain food products, drinking water, medicines, passenger transport, catering, housing-related services and public hygiene activities.
• 5% special reduced VAT rate: Applies to specified goods under Annex IV, including qualifying printed and electronic publications and certain standardized firefighting equipment.

These rates remain unchanged following the October 2026 guidance update.

However, the guidance emphasizes that the applicable rate depends on the exact classification of the product or service, not simply on its general description.

What has been clarified for waste management and public hygiene services?

The main clarification concerns the circumstances in which waste-management and public-hygiene activities qualify for the reduced VAT rate of 9.5%. Under point 16 of Annex I to ZDDV-1 and Article 59 of its implementing rules, qualifying activities include certain sewage-management services, collection and removal of non-hazardous waste, waste-disposal operations and other specified public-hygiene services.

For example, qualifying sewage-treatment and wastewater-management activities classified under SKD E/37.00 are subject to the reduced 9.5% rate. An important distinction also concerns packaging waste. The treatment of waste packaging must be assessed according to the actual activity performed and whether it qualifies as disposal under the relevant provisions.

Waste collected for further processing or recycling does not automatically qualify for the reduced rate merely because it is part of a waste-management service.

Consequently, businesses cannot assume that every waste-related activity qualifies for 9.5% VAT. Activities outside the defined categories are generally subject to the standard 22% rate.

This distinction is particularly relevant for waste-management providers, municipalities, recycling businesses and companies purchasing these services.

Although the October amendment focuses on public hygiene, the 15th edition also consolidates several practical explanations published earlier in 2026.

One clarification concerns different types of water. Qualifying drinking-water supplies remain subject to 9.5% VAT, while technological well water and demineralized water are generally subject to 22%.

Another explanation concerns the removal of invasive alien plants. Such activities are generally classified as landscaping or maintenance services and therefore subject to the standard 22% VAT rate, rather than automatically qualifying as reduced-rate agricultural services.

FURS also confirms that supplies of live crickets and grasshoppers classified under CN code 0106 49 00 are subject to 22% VAT, even when the animals are intended for use as feed, because the applicable product classification does not qualify for the reduced rate.

These explanations demonstrate the importance of customs tariff codes, activity classifications and intended product use when determining VAT treatment.

The guidance also provides useful explanations for businesses selling food and beverages.

Qualifying food products generally benefit from the 9.5% reduced rate. However, alcoholic beverages and drinks containing added sugar or sweeteners, including certain preparations used to produce these drinks, fall under the standard 22% rate.

This distinction is particularly important for supermarkets, convenience stores, restaurants, cafés and vending-machine operators. For vending machines, VAT classification depends on the finished beverage rather than the individual ingredients.

For example, a machine-produced beverage containing milk, coffee and added sugar may be subject to 22% VAT, even if some of its ingredients would individually qualify for a reduced rate. FURS also explains how the treatment may differ when a vending machine prepares beverages without added sugar or sweeteners and allows the customer to select these separately. These are existing VAT interpretations, not newly introduced October requirements. Nevertheless, they demonstrate why retailers and vending-machine providers need accurate product classifications and VAT configurations.

In our view, this update is important primarily because it provides clearer guidance on the application of existing VAT rules, rather than introducing new tax obligations.

For retailers and POS software providers, the main concern is not the change of VAT rates, but their correct application to individual products and services.

The distinction between similar products or activities can create compliance risks, particularly where the applicable rate depends on ingredients, tariff codes or the purpose of a service.

Implementation impact and what the business should do?

The October 2026 update does not require businesses to implement new VAT rates or replace existing POS and invoicing systems.

However, companies should review whether their current VAT classifications comply with the explanations provided by FURS.

Waste-management and public-hygiene providers should verify whether their activities qualify for the 9.5% reduced rate, particularly where services involve waste collection, disposal, recycling or processing.

Retailers, restaurants and vending-machine operators should review the VAT classification of food, beverages and other products where the rate depends on composition, product category or customs classification.

POS software vendors, invoicing providers and system integrators should ensure their systems support accurate VAT mappings at product and service level, including different rates for similar goods.

Businesses should also review their product master data, invoicing configurations and tax documentation, making corrections where existing classifications do not comply with the applicable rules.

The key takeaway is that Slovenia has not changed its VAT rates in October 2026, but FURS has clarified how existing rates must be applied. Companies should treat the new guidance as an opportunity to verify compliance, rather than as a new fiscalization requirement.

The main official source is the Slovenian Financial Administration (FURS), Stopnje DDV – Podrobnejši opis, 15th edition, October 1, 2026, which updates the interpretation of VAT rates under Slovenian law. It can be found here - Source

 The legal basis is the Value Added Tax Act (ZDDV-1), particularly Annexes I and IV, together with Article 59 of the Rules implementing ZDDV-1, governing qualifying public-hygiene services.

Nikolina Basić, Senior Legal Consultant at Fiscal Solutions

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