Exemption Certificate


In this article we are dealing with the so-called exemption certificate. Why do you need it? When do you need it? How do you apply for it? Read on and find out more!

What is an Exemption certificate?

If an entrepreneur (client) awards an order to a contractor, the construction tax is due. This means that the builder holds 15% of the negotiated price for the construction contract and gives it to the tax office. This process is not only bureaucratic difficult, but also means an inevitable loss of income for the contractor. An Exemption certificate can circumvent this.

Application for a certificate

The contractor can apply for an Exemption certificate from the tax office, provided that the tax office has no doubt that the contractor will pay his taxes. Once the certificate has been issued, it must be submitted to the service recipient, i.e. the client. The client can then transfer the entire invoice amount.

How long is the certificate valid?

First of all, the Exemption certificate is valid for a maximum of 3 years, for Slovenian construction companies for 1 year. But after expiration you have to re-apply. Often, the tax office issues a project-related Exemption certificate, this is often the case for Croatian construction companies. These can then be used only for the one special order for which it has been issued.

Certification for foreign construction companies

Foreign construction companies apply for the Exemption certificate from the tax office responsible In their home country. The following requirements must be met:

  • The application must be accompanied by the questionnaire prepared by the Federal Ministry of Finance
  • The tax registration in the home country must be confirmed by the tax authority responsible.
  • A domestic receiver must be appointed who is responsible for receiving the correspondence between the local tax office and the certificate.

How can I check the validity?

The validity of the certificate can be checked online. Before that, however, a registration on this page is necessary. If the electronic query does not lead to a result, you have the opportunity to contact the responsible tax office, which had issued the certificate.

What if no exemption certificate is submitted?

The service provider is required to provide a legible copy of the exemption certificate. If he neglects this duty, one must assume that he does not possess such a certificate. As a result, the recipient of the service is obliged to comply with the building deduction tax and pay it to the responsible tax office of the service provider.

As a general rule, construction companies that have an exemption certificate create a much more serious impression on the client. Many companies only place orders with companies that have this certificate.


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