Serbia: the new fiscal system and its impact on retailers

July 27, 2021

The existing fiscal system in Serbia requires using additional hardware, and retailers who operate in Serbia are well familiar with it. It was first introduced in 2004, but a new model is now being implemented. The new model was voted in December 2020 and will be introduced starting from 2022.

In this article, we’ll look into the details of the new tax system for retailers.

What’s changing in the Serbian tax model? 

In the new system, information on transactions will be sent in real time to the tax office. For this, the new system has 4 main elements: 

1. The fiscal management system. The fiscal management system (SUF) is controlled by the Serbian tax office. It receives, verifies and analyzes information on invoices and taxes. A virtual processor (referred to as V-PFR) of receipts makes this possible. 

2. A cash register application. This application, known as ESIR, will be used to collect information on transactions and print receipts. A POS system certification is necessary. 

3. A receipts processor. The receipts processor (known as PFR) sends information on all receipts to the tax office. It can either be located at the tax office, or at the store: 

  • ‚ÄćVirtual receipts processors (V-PFR) are located at the tax office. In that case, an internet connection is necessary.‚Äć
  • Local receipts processors (L-PFR) are located at the retailer‚Äôs store, allowing for an offline mode, if necessary.¬†

4. A security component. The security element (referred to as BE) generates a signature for each receipt. The type of security element will depend on the type of processor a retailer chooses. If they have a virtual receipts processor, the security element will essentially be a software layer. If they’re using a local receipts processor, then security is maintained by a hardware element, a card with an RFID chip. 

Most retailers will probably choose a local receipts processor, which allows them to continue to operate even in case their internet connection is interrupted. 

How did the new model evolve? 

At first, the new fiscal system in Serbia was expected to be fully connected and rely only on software, similar to other countries on the Balkans, such as Croatia, Slovenia and Montenegro. However, with the introduction of the secure element, this model was reconsidered. With the possibility to have a hardware component acting as a security layer (a RFID card), the new fiscal model is not 100% software-based. 


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