Extended Use of the Domestic Reverse Charge for Construction‑Related Services

These changes have a direct impact on the construction sector, where Article 76a has been most frequently applied.

Previous Scope of Article 76a

Historically, the application of Article 76a to construction activities was limited to services classified under Group F – Construction according to the Standard Classification of Activities (SCA). Construction services already falling under the reverse charge mechanism included building, reconstruction, repair, cleaning, maintenance, and demolition works associated with immovable property. [edavki.durs.si]

Key Amendments: Newly Added Activity Codes

Under the revised rules, two additional activity codes now fall under the mandatory reverse‑charge regime when the services are performed between two VAT‑registered taxable persons:

• M/68.120 – Development of building projects
• O/81.220 – Cleaning of newly built premises immediately after construction completion

This expansion means that a broader range of services connected—directly or indirectly—to the construction lifecycle now require suppliers to issue invoices without VAT, with the recipient assuming the VAT accounting obligation. Guidance confirms that taxable persons must report these Article 76a transactions monthly via the mandatory PD‑O return filed through the eDavki portal. [edavki.durs.si]

Rationale Behind the Expansion

Slovenia’s broader use of the reverse charge mechanism aims to:

• Reduce VAT fraud, especially in high‑risk sectors such as construction
• Simplify administration for suppliers in complex multi‑party construction projects
• Enhance consistency with the tax authority’s guidance on reverse‑charge obligations for construction‑related activities (including cleaning, maintenance, and related services). [edavki.durs.si]

More general guidance on Slovenia’s reverse charge framework confirms that the mechanism applies when the supplier provides services listed in Article 76a and the recipient is VAT‑registered, ensuring compliance and predictable VAT treatment across the sector. [vatupdate.com]

Mandatory Use Between VAT‑Registered Parties

A crucial point in the updated rules is mandatory application:
Whenever the newly included services—development of building projects or post‑construction cleaning—are supplied between two VAT‑registered taxable persons, Article 76a must be applied. There is no option to charge VAT under the standard regime.

Compliance Obligations

Taxable persons performing Article 76a‑covered supplies must:

• Submit a Report on Supplies (PD‑O) by the last business day of the month following the transaction. [edavki.durs.si]
• Ensure accurate classification of services under the newly included activity codes.
• Issue invoices without VAT, clearly indicating “reverse charge – Article 76a ZDDV‑1”.

Failure to submit PD‑O reports correctly can result in penalties of EUR 2,000 to EUR 125,000 for legal entities. [edavki.durs.si]

Useful External Resources

• Reverse Charge Mechanism Overview – VATupdate
  https://www.vatupdate.com/2025/03/12/reverse-charge-mechanism-in-vat-a-guide-for-businesses/ [vatupdate.com]
• eDavki – Reporting on supplies under Article 76a (PD‑O)
  https://edavki.durs.si/EdavkiPortal/OpenPortal/CommonPages/Opdynp/PageD.aspx?category=porocilo_o_dobavah_podjetja&lng=en [edavki.durs.si]
• Instructions for supplies under Article 76a (ZDDV‑1)
  https://edavki.durs.si/OpenPortal/Dokumenti/ddv_pdo.n.en.pdf [edavki.durs.si]