April 2026 inflation rise to 3.1% from 2.5% in March prompts VAT and other tax measures
Slovenia Parliament has approved emergency legislation introducing temporary VAT reductions.
This would be on essential food and household energy supplies amid ongoing inflation and rising living costs following the start of the Iran / Gulf conflict in February 2026.
Parliament proposes two temporary VAT cuts
- VAT would fall to 5% on a basket of 15 staple food products, including bread, flour, pasta, meat, milk and yoghurt.
- VAT would reduce VAT on electricity, natural gas, district heating and firewood to 9.5% for nine months.
The package forms part of wider economic intervention measures approved by Parliament on 11 May 2026, alongside proposals affecting social contributions.
Read more in our Slovenian VAT guide.
If implemented, the reduced rates will require businesses to rapidly update indirect tax settings across invoicing, pricing and ERP environments. Suppliers impacted by the changes should also review how temporary VAT measures are reflected in digital reporting and transaction-level controls.
The legislation has now moved to the Council of State for further consideration. However, opposition groups are already discussing possible referendum initiatives which may affect the timing or final adoption of the measures.
Read how other countries are using VAT cuts in Gulf conflict crisis.
