The adopted Law was published in the Official Gazette of RS number 30 on 20 April 2018. The Law shall go into effect starting 1 July 2018, except for the provisions relating to VAT refunds for foreign entities which shall go into effect on 1 January 2019.
An overview of significant changes is provided below.
Issuing of invoice as the moment of occurrence of VAT liability
The Law specifies that the issuing of the invoice shall be deemed as chargeable event not just for authorship and similar rights and intellectual property rights, but also for services that are directly linked to such supply, if provided by the same entity, where an invoice is issued before supply or payment.
Application of special rate expanded
Application of the special rate of 10% is prescribed for supply and import of full and supplementary mixtures for cattle feed.
Tax exemption with right to deduct input tax
A new tax exemption with right to deduct input tax is prescribed for the supply of goods that are entered into a free zone, for transport and other services connected with such introduction and supply of goods in a free zone when provided to a foreign entity that has concluded a contract with the VAT payer - user of the free zone, for the purpose of installing such goods into goods that are intended for delivery abroad.
Change of conditions for VAT refund to a foreign taxpayer
Redefined conditions for a VAT refund to a foreign taxpayer shall go into effect starting 1 January 2019.
The Law provides for a foreign entity to be entitled to a VAT refund when performing supplies of goods and services for which the obligation to calculate VAT rests with the VAT taxpayer - recipient of goods and services.
This extends the refund right to foreign entities who are not registered for VAT in Serbia, where such entities perform supplies in Serbia to entities that are VAT payers.
Amendments to the Law on VAT adopted by the Serbian Parliament
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