|Standard VAT Rate||Digital Reporting Requirements / E-invoicing||VAT on Cross-Border Electronically Supplied Services||Tax Authority Website|
|20%||Yes||Yes||Republic of Serbia Ministry of Finance - Tax Administration (Ministarstvo Finansija Poreska Uprava)|
VAT Rates in Serbia
The standard Value Added Tax rate (”Porez na dodatu vrednost”) in Serbia is 20%, with some services exempt from Serbian VAT, such as the supply of goods and services intended for official use by consular and diplomatic representatives on the territory of Serbia.
The VAT rates in Serbia:
|VAT Rates||Rate Type||Description|
|20%||Standard Rate||Applies to all taxable supplies, with certain exceptions.|
|10%||Reduced Rate||Applies to basic foodstuffs, daily newspapers, medicines, publications, public transport services, utility services, etc.|
|0%||Zero Rate||One of the most important examples where the 0% VAT rate is applicable is in relation to goods and services intended for export. This is due to the destination rule, according to which VAT is paid in the place where the given goods are consumed or used. VAT is not paid in the circulation of money and capital, primarily in connection with credit operations, operations of insurance companies and private pension funds, as well as operations related to securities, checks, and bills of exchange.|
VAT Registration Thresholds in Serbia
- VAT registration threshold for domestic established sellers: A taxpayer who, in the previous 12 months, had a total turnover of more than RSD 8 000 000 should submit a VAT evidentiary declaration to the competent tax authority no later than the expiration of the first deadline for submitting the periodic tax return.
- VAT registration threshold for non-established sellers: Foreign sellers should register for VAT before commencing business activities in the Republic of Serbia if they are supplying taxable goods or services, no matter the turnover in the last 12 months. Depending on the type of business activity they will pursue, they could do this indirectly through the services of a Tax Representative.
- VAT registration threshold for non-resident sellers of Electronically Supplied Services: Non-resident providers of digital services or products or e-services should register for VAT before they start supplying taxable Electronically Supplied Services to Serbian end consumers. The Serbian VAT number is a prerequisite for providing ESS to end consumers domiciled/registered in Serbia.
- In specific cases, the non-resident business entity that exclusively provides a taxable supply of goods or services B2B could be exempt from the obligation to register for VAT, due to the rules governing the reverse charge mechanism.
Serbian VAT Number Format
The Tax Identification Number (TIN) in Serbia is exclusively in numerical format.
Businesses - “Poreski Identifikacioni Broj” (PIB)
TINs for businesses are composed of 9 numbers and are referred to as PIBs. This format should apply to legal entities, entrepreneurs, permanent business units of non-resident legal entities, and non-resident natural persons.
Individuals - “Jedinstveni Maticni Broj Gradjana” (JMBG)
TINs for resident natural persons are composed of 13 numbers and are referred to as JMBGs.
- For individualsFormat: 2403234010423
- For businessesFormat: 123456789
VAT on Digital Services in Serbia
The Republic of Serbia introduced VAT rules applicable to non-resident digital service providers in 2017 with amendments to the VAT Law. Non-resident companies providing electronically supplied services (ESS) should impose a standard VAT rate of 20% on supplies provided to residents of Serbia. To operate in alignment with Serbia's VAT rules, foreign entities should look to appoint a Tax Representative.
VAT Rate: 20% - applied to the sale of affected Electronically Supplied Services
Taxable digital services in Serbia:
Taxable digital services include, but are not limited to:
- Delivery of websites, storage, and maintenance of websites;
- Delivery of audio and video recordings, as well as delivery of games, including games of chance;
- Distance learning services.
Will your business need to pay VAT on digital services in Serbia in 2023?
Marketplace & Platform Operator Rules in Serbia
Currently, there is no specific legislation that exclusively targets the responsibilities of Foreign Digital Platforms in Serbia. Foreign businesses which plan to do business in the country must be aware of the complexity of Serbian indirect tax legislation.
Invoice Requirements in Serbia
The Law on E-Invoicing defines mandatory elements of the e-invoice. An electronic invoice usually contains the following:
- Document & general transaction information
- Serial number and date of issuance of the electronic invoice
- Date of delivery of goods, i.e., provision of services or advance payment
- Supplier information
- Name, address, tax identification number, and registration number of the issuer of the electronic invoice
- Business account of the electronic invoice issuer
- Customer information
- Name, address, tax identification number, and registration number of the recipient of the electronic invoice
- Business account of the recipient of the electronic invoice
- Financial transaction information
- Amount of advance payments
- Payment instructions
- Data on the type and quantity of delivered goods or the type and scope of services;
- Taxable amount
- Value Added Tax rate
- Amount of VAT calculated on the taxable amount
- The total amount of the electronic invoice
- A note on the provision of the law regulating VAT based on which VAT was not calculated
- Note that the billing system is applied for the sale of goods and services
E-Invoicing & Digital Reporting for Serbia
Serbia has two types of Digital Reporting mechanisms in place - Fiscalization and the Electronic Invoicing System.
- Fiscalization was introduced by the Law on Fiscalization in 2004. This mechanism is based entirely on the mandatory usage of fiscal devices, electronic devices used to record taxes owed. The original format of digital reporting via the Fiscalization system was radically changed almost two decades later, by the regulation that became fully effective in 2022.
- The Electronic Invoicing System was introduced gradually starting in 2022. As of January 1st, 2023, it has been implemented in its entirety. The Electronic Invoicing System in Serbia is called E-faktura.
Governmental Body Responsible for E-invoicing and Digital Reporting in Serbia
The Republic of Serbia's Ministry of Finance is the main public institution for governing the E-Invoicing system within Serbia.
The Central Information Intermediary is the unit within the Serbian Ministry of Finance that is responsible for the monitoring and functioning of the E-Faktura system, as well as for compiling and maintaining the Registry of accredited information intermediaries.
E-faktura is the e-invoicing system platform in Serbia.
VAT Payments and Returns in Serbia
Full VAT Returns
|VAT Return Name||PP PDV form (VAT Return form)|
|Filing Frequency||Monthly or Quarterly|
|Online filing||Recommended, via ePorezna service|
|Filing deadline||The taxpayer should submit a tax-return declaration to the competent tax authority on the prescribed form within 15 days after the end of the tax period. The taxpayer should submit a tax return regardless of whether he should pay VAT in that tax period (i.e. a null return). Tax returns should also be submitted by tax debtors who are not liable for VAT within ten days after the tax period in which the tax liability arose. Along with the VAT return declaration, the taxpayer must submit a so-called VAT assessment overview form (PO PDV form). If the taxpayer does not submit a VAT assessment overview form along with the VAT Return, the VAT return is considered as not having been submitted. Foreign taxpayers, under specific circumstances, have the right to a VAT refund if they perform a taxable supply of goods and services in Serbia to a Serbian-registered VAT taxpayer.|
|Payment deadline||The taxpayer should pay VAT due within the prescribed deadline for submission of the VAT return (15 days).|
|Payment currency||Serbian dinar (RSD)|
|Local VAT acronym||”Porez na Dodatu Vrednost” (PDV)|
Penalties in case of late filings or misdeclarations
In the case of the late filings of VAT returns and payments, the Serbian Tax Authority should likely enforce the following penalties:
- Fines for failure to submit a tax return are defined between 20% to 75% of the tax amount owed determined during the tax audit, and should not be less than RSD 400,000 for a legal entity or RSD 80,000 for an entrepreneur.
- Non-payment of Tax returns is subject to misdemeanor fines of 10% to 50% of the owed tax amount, which has been determined through a tax audit. The fine should not be less than RSD 250,000 for a legal entity or RSD 50,000 for the entrepreneur.
- In cases when the taxpayer receives two misdemeanor reports within two years from TA and a fine, it should be suspended from conducting its activity for a period between six months and three years.