Serbia: Value Added Tax Law 2018


Amendments to the Value Added Tax (VAT) Law are published in the Official Gazette of the Republic of Serbia No. 113/2017 dated 17 December 2017. The most important changes to VAT are presented here by our Tax experts from Serbia.

1. VAT changes starting from 1 January 2018

  • The supply of goods and services carried out within the implementation of the public&private partnerships contracts with elements of concessions between the grantor of concession and concessionaire is not subject to VAT under specified conditions (starting from 01 January 2018);
  • The taxpayer has the right to deduct input VAT on expenditures for food (including beverages) for employees and other work-engaged persons which are provided in their own catering facilities (canteens), but on condition that the taxpayer charges a fee on those expenditures (starting from 01 January 2018);
  • In case that the Tax Authority determines, in the audit procedure, that the taxpayer incorrectly applied reverse charge mechanism (e.g. for supply of goods and services in the construction industry) and accordingly calculated VAT liability as the tax debtor and at the same time stated the same amount as input VAT, the Tax Authorities will make a correction of the deduction of the input VAT via a decision and taxpayer will have the right to decrease output VAT on the basis of that decision (starting from 01 January 2018);
  • Place of supply of a unique tourism service is now more precise and will be considered as the place where the service provider has a seat or a permanent establishment;
  • Refund of the paid VAT to the buyer of the first apartment in case where the apartment is subject of a mortgage, or subject of enforcement in the enforcement proceedings.

2. VAT changes starting from 1 April 2018

New special taxation regime is introduced for the supplies of investment gold (starting from 01 April 2018)

3. VAT changes starting from from 01 July 2018

Postponing the obligation to submit detailed breakdown of the VAT together with the VAT return (starting from 01 July 2018);

4. VAT changes starting from 1 January 2019

Zero VAT rate is prescribed on the supply of goods that non-resident recipient dispatches in the baggage abroad (previously this rule applied only to foreign citizens). Total value of goods which is exempt is reduced from EUR 150 to EUR 100. This supply is not related to excise goods and the goods that are intended for equipping and supplying means of transportation used for private purposes. Further on, the VAT refund institute to a foreign citizen is abolished (starting from 01 January 2019);

If you have questions about the current VAT law in Serbia, please contact our tax experts in Serbia

  • There have been more tax changes in Serbia in 2018, find out more in the current tax news of TPA Serbia
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