VAT in Serbia (Value added tax)

VAT in Serbia

Value Added Tax (VAT) is a general consumption tax calculated on and paid for the delivery of goods and services, at all stages of production and trade of goods and services, as well as for the importation of goods. VAT is assessed and collected on the value of goods or services that have been provided every time there is a transaction (sale/purchase). The seller charges VAT to the buyer, and the seller pays this VAT to the government.

The companies which administer the sale of goods/services on the territory of the Republic of Serbia and whose volume of sales in the last 12 months wasn’t higher than 8 000 000 RSD, are not obligated to calculate VAT.

During the founding of a company it can be determined that the volume of the company in the next 12 months won’t be higher than RSD 8,000,000.

The companies which volume of sales is not higher than 8 000 000 RSD are not obligated to be registered is VAT system, but if they want, they can do it.

The majority of VAT in Serbia regulation are align with EU VAT Directive. 

The deadlines for VAT applications and VAT refund

The VAT payers must apply for VAT registration to Tax administration.

The deadline for making the VAT application is a maximum of 15 days, from the expiration date of the tax period. Tax period can be determined on one or three-month’s period.

For a taxpayer who has achieved a total turnover of less than 50,000,000 dinars in the previous 12 months, the tax period for which VAT is calculated, the tax return is submitted and VAT is paid is a calendar quarter (three months).

A company has right on different refunds in the case when the accounting agency determines that the company which is VAT payer has a higher amount of previous tax than the amount of tax due.

For the unused difference the company can ask for:

  • Tax refund.
  • The difference is considered as a tax credit.

The deadline for the tax refund is 15 to 45 days starting from the day of submitting tax application.

VAT forms and declaration can be found on our site in the download section.

Subject of VAT in Serbia payment

1) Turnover of goods and services

  • delivery of goods
  • providing services

The following conditions must be fulfilled cumulatively:

  • the taxpayer made the turnover in Serbia
  • the turnover was made for a compensation
  • the turnover was carried out within the scope of activities

2) Import of goods into the Republic – entry of goods into the customs territory of Serbia.

Turnover of goods

Turnover of goods is a transfer of the right of disposal to a person who can dispose of those goods as an owner. According to paragraph 4. of the Value added tax law, the supply of goods taxable with a 20% rate.

Turnover of goods refers also to:

  • water
  • electricity
  • gas
  • energy for heating or cooling

Turnover of goods includes:

  • the transfer of ownership rights on goods with compensation.
  • the delivery of goods based on the sale on credit contract.
  • the delivery based on a leasing contract, or rent, concluded on a certain period, for movable and immovable properties.
  • the delivery from the owner to the commission agent and vice versa.
  • the delivery of goods according to the contract where the commission is paid during the sale.
  • the delivery from the owner to the consignee and from the consignee to the owner.
  • the delivery of goods produced or composed according to customer’s order from deliverer’s materials.
  • the transfer of ownership rights or the transfer of the owner’s share on construction objects or economically dividable aggregates of those objects.
  • the trade of goods for other trades and services.
The supply of services

According to paragraph 4. of the Value added tax law, the supply of services includes all the jobs which are not the supply of goods, but where the certain services are done. The supply of services are taxable with a 20% rate.

Supply of services includes:

  • the transfer, assignment and giving permission for usage of copyrights and similar rights, patents, license, trademarks and the other rights of intellectual property.
  • provision of services with compensation.
  • the delivery of goods produced or composed according to ordered by a client, from deliverer’s materials.
  • the trade of services for goods or services.
  • the delivery of food and drinks for consummation on the spot.
  • ceding of share or rights.
  • the supply of services with compensation includes:
  • the usage of goods which are a part of the business property of taxpayer for the personal needs of a founder, an owner, the employees or other persons.
  • the supply of services which taxpayer carries out without compensation for the personal needs of a fonder, an owner, employees or other persons.


VAT base

The tax base for the sale of goods and services is the amount of compensation that a taxpayer receives or is required to receive.
Compensation can be in:

  • cash
  • goods
  • services

The base for the importation of goods is the value of the imported goods.

The base also includes:

  • excise duties, customs duties and other import duties, as well as other public revenues (excluding VAT)
  • all additional costs that the taxpayer charges to the recipient of the goods and services

The base does not include:

  • discounts and other reductions in the price, which are granted to the recipient of goods or services at the moment when the goods or services are made
  • amounts charged by the taxpayer in the name and for the account of another, if that amount is transferred to the person in whose name and for whose account he / she made the payment

VAT rates

The general value added tax rate is 20%.

The special value added tax rate is 10%.

At the special rate of 10% VAT is the turnover of goods and services, or the importation of goods, taxed:

  • bread and other bakery products, milk and dairy, flour, sugar, edible sunflower oil, corn, coleseed, soya and olives, edible fat of animals and plants and honey.
  • fresh, cooled and frozen fruit, vegetable, meat including entrails and other butchery products, fish and eggs.
  • cereals, sunflower, soya, sugar beet and coleseed.
  • medicines, including those used in veterinary medicine.
  • orthopedic and prosthetic articles, as well as medical articles – products surgically incorporated in the organism.
  • dialysis material
  • fertilizer, means for protecting plants, reproduction semen, seeding material, compost with mycelium, complete and additional mixtures for feeding cattle and live cattle.
  • schoolbooks and teaching material, daily newspaper, monographic and serial publications
  • firewood, briquette, pellet and other similar products.
  • services of accommodation in hospitality objects according to the Law on tourism.
  • services paid by selling tickets (only if this volume of sales is not freed from VAT.
  • natural gas; thermal energy used for heating.
  • the transfer of ownership rights on construction objects or economically dividable aggregates of those objects, as well as the owner’s shares on these goods.
  • the services which precede delivery of drinking water through plumbing, so as drinking water except for the bottled one.
  • abstersion and draining of atmospheric and wastewaters; control of communal waste; cleaning public places; maintenance of green areas and shores
  • the transport of passengers and their luggage; controlling cemeteries and burial services.

Download presentation about VAT rates  directly here.

If you have any further questions regarding this topic, please contact our consulting team.

VAT in Serbia (Value added tax)



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