VAT in Serbia

There is a number of goods and services exempted from VAT in Serbia, with or without the right to recover input VAT.

Output VAT

• VAT liability arises when the first of the following occurs:

–supply of goods and services;

–collection of advance payment;

–import of goods.

Input VAT

•Generally, input VAT incurred by a VAT payer on purchase of goods and services, as well as input VAT paid on import, can be claimed as input VAT provided that certain requirements are met.

•The basic requirement is that related supplies are received for the purpose of performing either VAT-able supplies or exempted supplies with recovery right.

•The following documentation has to be provided in order to support VAT recovery:

–an invoice issued by the supplier containing all elements prescribed by the VAT Law, or

–a confirmation proving that VAT charged by the customs office on import is paid.

•VAT incurred on the following supplies cannot be claimed back:

–acquisition, production and import of passenger cars, motorcycles, vessels and aircrafts, spare parts, fuel and supplies, as well as rental, maintenance, repairs and other services related to the use of these means of transport (with the exception for their use for sale or rent, passenger transport or driver training);

–entertainment costs;

–acquisition or import of carpets, electric household appliances, TV sets and radio receivers, works of fine and applied arts and other decorative items for office premises.

Reverse charge mechanism in Serbia

•The taxpayer has to calculate the “reverse charge” on certain services provided by non-residents in Serbia (if the non-resident has not appointed a fiscal representative) and may deduct this as input VAT in the same VAT return if the basic deductibility requirements are met.

Refunds

•Generally, if the input tax amount is higher than the tax liability amount, the taxpayer is entitled to a refund of the difference in 45 days. This can take the a form of an actual cash refund, or can be treated as a VAT prepayment and carried forward for offsetting future VAT liability.

VAT collection and assessment

•Tax returns are submitted on a monthly or quarterly basis, depending on the turnover of the taxpayer, by 15th or 20th day of the following month.