Green Taxes in Serbia – What do you need to know?

Starting from 1 January 2026, new “green taxes” are in force in Serbia:

• Greenhouse Gas Emissions Tax, and
• Import Tax on Carbon-Intensive Goods,

The purpose of these taxes is to reduce pollution and encourage investment in cleaner production.

Tax on Greenhouse Gas Emissions

What is subject to taxation?

Taxable emission of greenhouse gases (hereinafter: GHG) including:

• carbon dioxide (CO₂),
• nitrous oxide (N₂O) and
• perfluorocarbons (PFCs).

Who pays this tax?

Legal entity or entrepreneur who is required to possess a permit for GHG emissions and who, as the operator of a facility or part of facility for which a permit must be obtained, conducts one of the following activities:

• production of artificial fertilizers and nitrogen compounds;
• production of cement;
• production of crude iron, steel, and ferroalloys;
• production of aluminum;
• production of electricity.

What is the tax base?

Difference between the total amount of GHG emitted by the taxpayer during the calendar year from all facilities and the reference emission.

Essentially, the tax base is the “excess” emission above the prescribed standard.

Total emission is determined based on verified reports submitted to the Environmental Protection Agency/Civil Aviation Directorate or based on an emission estimate.

Reference emission values are determined by a bylaw adopted by the minister responsible for environmental protection within 180 days from the date of entry into force of the law.

The tax base is expressed in tons of CO2 or tons of CO2 equivalent (CO2eq).

How is the tax determined?

Product of the tax base and the amount of EUR 4 per ton in the dinar equivalent at the middle exchange rate of the National Bank of Serbia on  the last day of the tax period for which the tax return is submitted.

When is the tax return filed and the tax paid?

The tax period is the calendar year.

The tax return must be filed until 31 May of the current year for the previous year and the determined tax must be paid within the same deadline.

The taxpayer who ceases to carry out activities in all facilities is required to submit a tax return for the current tax period within 30 days from the date of cessation of activities. Within the same period, a return for the previous tax period must also be submitted, but no later than 31 May of the current tax period.

If the operator of a facility changes during the tax period, the obligation to submit the tax return and pay the tax for the entire tax period lies with the person who is the operator of that facility on the last day of that tax period. Persons who have held the status of facility operator during the calendar year are jointly liable for fulfilling the tax obligation for the entire tax period.

Modification of the tax return in the case of a revised Report

In the event of submitting a revised report in accordance with climate change regulations, the taxpayer is required to submit a tax return within 15 days from the date the revised report was submitted to the competent authority.

Tax credit – how to reduce the amount of tax?

A tax credit in the amount of 20% of funds invested in measures to reduce GHG emissions may be granted to entities:

• whose registered predominant activity is electricity production, and
• who have generated at least 80% of their total income from electricity production.

The total amount of the tax credit cannot exceed 80% of the tax liability.

The tax credit can be used in a 10-years period starting from 2026.

Tax on Carbon-Intensive Goods

What is subject to taxation?

The subject of taxation is the import of carbon-intensive products into the Republic of Serbia.

What is carbon-intensive product?

Good classified under certain tariff codes of the Customs Tariff nomenclature, falls into one of the following categories:

• Iron and steel,
• Cement,
• Fertilizer, and
• Aluminum.

Who pays this tax?

• An entity that imports a carbon-intensive product in its name and on its behalf,
• An entity on whose behalf a carbon-intensive product is imported into the Republic of Serbia (indirect customs representation).

Entities who have imported less than 5 tons of a carbon-intensive product during a calendar year are not considered as taxpayers.

What is the tax base?

• The actual amount of CO2eq emissions related to a carbon-intensive product, confirmed in the validator’s report, reduced by the reference amount of emissions; or
• The estimated amount of CO2eq emissions related to a carbon-intensive product, in cases where the validator is, for any reason, unable to confirm the actual amount of CO2eq emissions.

Reference and default emissions values are determined by a bylaw adopted by the minister responsible for environmental protection within 180 days from the date of entry into force of the law.

How is the tax determined?

Tax is determined as the product of the tax base and the amount of EUR 4 per ton in the dinar equivalent at the middle exchange rate of the National Bank of Serbia the last day of the tax period for which the tax return is submitted.

When is the tax return filed and the tax paid?

The tax period is the calendar year.

The tax return must be filed until 31 May of the current year for the previous year and the tax must be paid within the same deadline.

The tax period differs from the calendar year in the case of:

• cessation or commencement of business activities during the year,
• mergers and acquisitions,
• initiation, suspension or completion of bankruptcy or liquidation proceedings.

Taxpayers whose tax period differs from the calendar year due to cessation of business activities submit the tax return:

• for the current period, within the deadlines prescribed by the law governing personal income tax for filing returns for income from self-employment, or by the law governing corporate income tax for filing returns for corporate income tax,
• for the previous period, within the deadline for filing the return for the current period, but no later than 31 May of the current tax period.

Tax credit – how to reduce the amount of tax?

Reduction of  tax liability is attained if payment has already been performed in the country of origin for the same product for the manufacture of a carbon-intensive product.

In order to exercise the right to a tax credit, the evidence of payment, the amount of the fee paid, the quantity of emissions, the calculation methodology and the time period to which the payment refers must be provided.

The tax credit can be used in a 10-years period starting from 2026.