VAT registration in Serbia
Legal frame work
VAT registration in Serbia is prescribed by Law on VAT.
In case when non-resident legal entity wants to make VAT registration in Serbia, that means, inter alia, appointing of a tax proxy holder (VAT Agent), according to the Article 10a of Vat Law and Rulebook on procedure for tax proxy approval.
It is very important to notice that ultimate VAT liability obligation falls to tax proxy holder who submits VAT return on behalf of non-resident taxpayer. Due to this fact tax proxy assumes full risk for VAT liability and it is directly exposed to the tax authorities. Moreover, the amount such VAT liability is not controllable by tax proxy holder, as that depends on client’s transactions volume.
Tax proxy of a non-resident, in the name and on behalf of that non-resident, performs all tasks related to fulfilling the obligations and rights that non-resident has as VAT payer in accordance with this law (filing of a registration form, calculation of VAT, invoicing, filing tax returns, payment of VAT, and other).
According to the article 10a of VAT Law non-resident company has VAT liability regardless of the number of invoices and amounts.
Procedures and steps
In order better understanding of our potential engagement we present the full procedure:
Phase 1: obtaining a TIN – official procedure – documents required
- Special Tax Power of Attorney for us for opening a TIN: This TPoA needs to be signed by official notary with apostle in your country. After that, TPoA will be translated to Serbian language by official translator in Serbia. NOTE: We are going to show text for TPoA to tax officer in Belgrade Tax Office (BTO) in order to get confirmation that is OK, before you start translation.
- PR1 Declaration (official request form) – We can prepare this document and send to your director to sign. For the filling of PR1 we need data from client
- Statement with confirming reason for requesting of TIN – we can prepare this document after we receive filled data from client
- Original “Extract from business register (non-older than 3 months)” – we can translate that to Serbian language. Obviously, the reason of TIN requesting is VAT registration in Serbia.
Estimation for duration of TIN registration is 15 days.
Phase 2: opening non-resident bank account
Next step in VAT Registration in Serbia is is opening bank account. Bank will require some documentation e.g. Documentation that confirms final ownership : Extract from official business register for all legal entities that owns client more than 10% and copy of passports for individuals that are final ownership more than 10% and other official documents.
Besides, the banks has to follow strict anti-money laundering rules, so you may be required for some other documents.
Estimation for duration of opening bank account is 15 days.
Phase 3: Submission documents for VAT registration in Serbia
Submission prescribed declaration forms to tax authorities for VAT registration in Serbia. Before that following documents should been prepared
From the non-resident:
- proof that Non-resident is VAT taxpayer in its country, (notary + apostile required)
- certified tax power of attorney (attached). (notary + apostile required). Previous (above mentioned) TPoA have been applicable only for obtaining of Tax Number (TIN), and not applicable for VAT registration in Serbia.
From the tax proxy following documents are needed:
- proof that the proxy is not convicted of a tax offense (both legal entity and representative). Tax proxy (legal entity) should obtain evidence from the Court. The individual who is legal representative of legal entity should obtain an evidence from the Ministry of Internal Affairs (MUP).
- VAT registration in Serbia form (contains client s data, signed by the tax proxy)
- form for recording a tax proxy –
Estimation for duration of VAT registration in Serbia is 30 days.
Phase 4: VAT Compliance after VAT Registration in Serbia
Keeping records in VAT book, calculation of VAT, invoicing, filing tax returns, payment of VAT, and correspondence with Tax authorities.
WTS Serbia provides comprehensive portfolio of financial and tax consulting services, which help companies adjust to dynamic Serbian business environment. In case you are interested in registration of your company in Serbia, we propose you to read our articles on company registration in Serbia, grant opportunities, tax opportunities and business opportunities in Serbia
If you need VAT Registration in Serbia please contact our consulting team.
