VAT refund in Serbia

VAT refund in Serbia

The value added tax (VAT) refund is the right on a reimbursement of VAT paid to the recipient of goods or service user.

Refund is performed to the recipient of goods or user of services who paid VAT when purchasing such goods and services.

The sources of the right on a refund of VAT in the Republic of Serbia are Articles 53 to 55a of the Law on Value Added Tax.

The Rulebook on the procedure for realization of the right to a VAT refund and on the manner and procedure of VAT refund is an accompanying Rulebook to the aforementioned articles of the Law.

Types of VAT refund

There are four types of VAT refund:

• Refund to a foreign taxpayer
• Refund to humanitarian organizations
• Refund to churches and religious communities
• Refund to diplomatic and consular missions and international organizations

VAT refund to a foreign taxpayer

In order for a foreign VAT payer to be entitled to a refund, the following conditions must be met:

• VAT for the sale of goods and services is included in the invoice
• The invoice has been paid
• The amount of VAT for which the request for refund is submitted is higher than 200 EUR (in dinar equivalent at the middle exchange rate of the National Bank of Serbia)
• The conditions under which the VAT payer could exercise the right to deduct the previous tax have been met
• a foreign taxpayer does not trade in goods and services in the Republic, except for trade:
  • tax-exempt transport of goods
  • passenger transport service subject to individual transport taxation
  • goods and services for which the recipient of goods or services is obliged to calculate VAT
• the condition of reciprocity is fulfilled

VAT refund to humanitarian organizations

VAT refund to organizations registered to perform humanitarian activities is performed under the following conditions:

• the goods were delivered to humanitarian organizations in the Republic of Serbia
• the supply of goods is taxable
• VAT on delivered goods is stated on the invoice
• the invoice has been paid
• the purchased goods were shipped abroad
• abroad, the goods are used for humanitarian, charitable or educational purposes

VAT refund to churches and religious communities

Based on the submitted request, the right to VAT refund has:

• Serbian Orthodox Church
• Islamic community
• Catholic church
• Slovak Evangelical Church of the Augsburg Confession
• Jewish community
• Reformed Christian Church
• Evangelical Christian Church of the Augsburg Confession

VAT refund to churches and religious communities in Serbia is performed for goods that are

• delivered
• imported

as well as for the services provided to churches and religious communities in Serbia.

VAT refund to churches and religious communities is performed if the following conditions are met:

• The trade in goods and services, i.e. import, is directly related to religious activities
• The supply of goods and services, i.e. import, is taxable
• VAT on trade in goods and services, i.e. import, is stated on the invoice
• The invoice was paid by the church and the religious community, which is entitled to a VAT refund

VAT refund to diplomatic and consular missions; international organizations

VAT refund to foreign diplomatic and consular missions, as well as international organizations can be achieved if goods and services are traded, i.e. imported for:

• official needs of diplomatic and consular missions
• official needs of international organizations, if provided by an international agreement
• personal needs of foreign staff of diplomatic and consular missions (including members of their families)
• personal needs of foreign staff of international organizations (including members of their families, if provided by an international agreement)

The right to VAT refund can be realized if the following conditions are met:

• Delivery or import of goods, i.e. provided services are taxable under VAT
• VAT on trade in goods and services, i.e. import, is stated on the invoice
• The invoice has been paid
• the total value of goods or services, stated in the invoice or customs document, is greater than 50 EUR without VAT (except for the purchase of fuel for motor vehicles)

Procedure for realizing the right to VAT refund

The foreign taxpayer

The foreign taxpayer submits a request for VAT refund on Form REF 1.

The request for refund is submitted once a year, no later than June 30 of the current year for goods and services procured in Serbia in the previous calendar year.

The request is accompanied by:

• VAT registration certificate (original and certified translation)
• originals and copies of paid invoices for purchased goods or used services in the Republic, according to which VAT was calculated and paid

The humanitarian organization

The humanitarian organization submits a request for VAT refund on Form REF 2.

The request for refund is submitted once a year, no later than June 30 of the current year for goods procured in Serbia and the import of goods into Serbia.

The request is accompanied by:

• a copy of the registration of the humanitarian organization
• originals and copies of paid invoices for purchased goods in the Republic
• proof that the goods have been shipped abroad
• proof that the goods are being used for humanitarian, charitable or educational purposes
• data on the name and address of the foreign recipient of the goods, i.e. the purpose of using the goods

Traditional churches and religious communities

Traditional churches and religious communities submit a request for VAT refund on Form REF 3.

The deadline for submitting the request is 60 days from the end of the calendar quarter in which the goods and services were procured in the Republic or the goods were imported into the Republic.

The request is accompanied by:

• originals and copies of paid invoices for purchased goods and used services in Serbia
• originals and copies of documents on the import of goods into Serbia
• proof that the invoices were paid by the person entitled to VAT refund

Customer – a foreign citizen

Customer – a foreign citizen, who ships goods purchased in Serbia in luggage that he carries with him abroad, submits a request for VAT refund on Form REF 4.

Upon request, when leaving the customs territory of Serbia, the following shall be submitted for inspection:

• bills
• purchased goods

The VAT paid to the customer is refunded if, within 6 months from the issuance of the bill, customer delivers a certified original of the REF Form 4 to the seller from whom the good was purchased.

If the certified original of Form REF 4 is delivered by mail, the customer is obliged to provide the seller with the bank account number to which the VAT paid will be refunded.

Members of the diplomatic and consular mission

Members of the diplomatic and consular mission, or international organization, submit a request for VAT refund on Form REF 5.

The deadline for submitting the request is 30 days from the end of the calendar quarter in which the goods and services were procured in Serbia or the goods were imported into Serbia.

The request is accompanied by:

• originals and copies of paid invoices for purchased goods and used services in Serbia
• originals and copies of documents on the import of goods into the Republic of Serbia

If the holder of the right for the performed trade of goods and services is issued a fiscal bill, on the back of that bill the data are entered on:

• the name of the right holder
• name and surname of the right holder
• basic confirmation number
• the seal and signature of the supplier of the goods, i.e. the service provider, shall be affixed

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