VALUE ADDED TAX LAW

(Published in theOfficial GazetteOf the Reublic !f "e#bia

$!%&'()**'+ !f ,ul- )'+ )**'+ and $!% &.()**'+ !f ,ul- /*+ )**'0
1% 1$TRODU2TOR3 PROV1"1O$"
Article 1
This Law shall introduce value added tax (hereinafter: VAT) in the
Republic of Serbia (hereinafter: the Republic).
The VAT is a eneral consu!ption tax which shall be assessed and
paid on the suppl" of oods and services in all staes of production and
suppl" of oods and services# as well as on i!port of oods# unless
otherwise deter!ined b" this Law.
Article $
The revenue fro! the VAT shall belon to the budet of the Republic.
11 "ub4ect !f ta5ati!n
Article %
The followin shall be liable for VAT:
1) &eliver" of oods and renderin of services (hereinafter: suppl" of
oods and services) carried out b" a taxpa"er in the Republic# for a
consideration and in the course of perfor!in activities'
$) (!port of oods into the Republic.
1
"ul- !f 6!!ds and se#7ices
Article )
Accordin to this Law# suppl" of oods shall be transfer of rihts of
disposal over tanible oods (hereinafter: oods)# to a person who !a" have
proprietar" rihts# unless otherwise provided for b" this Law.
*oods shall also include water# electricit"# as and heatin ener".
Suppl" of oods# accordin to this Law# shall also include:
1. Transfer of the riht of disposal over oods# for a consideration# on
the basis of reulations of a state bod"# bod" of territorial autono!"
or local self+overn!ent'
$. &eliver" of oods under a leasin contract# in accordance with the
law# or under a sales contract with deferred pa"!ent whereb" riht of
disposal is transferred not later than at the ti!e of the pa"!ent of the
last install!ent'
%. &eliver" of oods b" the owner to a co!!ission aent and b" a
co!!ission aent to the recipient'
). &eliver" of oods under a contract accordin to which sales
co!!ission is paid'
,. &eliver" of oods b" the owner to the consinee and b" the consinee
to the recipient of the oods'
-. &eliver" of oods produced or !anufactured upon the order of the
orderin part"# out of the !aterials of the supplier# if it is not onl"
deliver" of accessories or other secondar" !aterials'
.. /irst transfer of title over newl" established buildin structures or
econo!icall" divisible units within these structures (hereinafter:
structures)'
0. 1xchane of oods for other oods or services.
Suppl" of oods for a consideration shall also include:
1. 2se of oods representin a part of business assets of the taxpa"er
for personal needs of the founder# e!plo"ees or other persons'
$. An" other suppl" of oods free of chare'
$
%. 1xpenditure (ullae# wastae# defect and brea3ae) in the a!ount
exceedin the a!ount deter!ined b" the reulation passed b" the
*overn!ent of the Republic of Serbia.
2se of oods# i.e. an" suppl" of oods referred to in pararaph ) of
this Article shall be considered suppl" of oods for a consideration provided
that the VAT co!puted for such oods or their co!ponents on purchase
!a" be deducted full" or proportionall".
(f alon with deliver" of oods# secondar" deliver" of oods or
renderin of services is perfor!ed# it shall be dee!ed that onl" one deliver"
of oods has been perfor!ed.
(n case of successive deliver" of the sa!e oods where the first
deliverer transfers riht of disposal to the last recipient of oods# ever"
successive deliver" of oods shall be considered a separate deliver".
The 4inister of /inance (hereinafter: the 4inister) shall specif" what
is considered to be a newl" established buildin structure referred to in
pararaph % ite! . of this Article# and what is considered to be use of oods
representin a part of the business assets of the taxpa"er# as well as an"
suppl" free of chare referred to in pararaph ) of this Article.
Article ,
Accordin to this Law# suppl" of services shall be understood to
include all activities and steps ta3en in the course of the perfor!ance of
activities# which do not represent suppl" of oods referred to in Article ) of
this Law.
Suppl" of services shall also include a failure to act and passiveness.
Accordin to this Law# suppl" of services shall also include:
1. Transfer and assin!ent of cop"rihts# patents# licenses# trade !ar3s#
as well as other intellectual propert" rihts'
$. Renderin of services for a consideration on the basis of reulations
of state bodies# bodies of territorial autono!" or local self+
overn!ent'
%
%. &eliver" of oods produced or !anufactured on the order of the
orderin part"# out of the !aterial of the orderin part"'
). 1xchane of services for oods or services'
,. &eliver" of food and drin3 to be consu!ed on the spot'
-. Transfer of title over real estate'
.. Assin!ent of other shares or rihts.
Suppl" of services for a consideration shall also be:
1. 2se of oods representin part of the business assets of a taxpa"er
for personal needs of the founder# e!plo"ees and other persons'
$. Renderin of services b" a taxpa"er free of chare and for
personal needs of the founder# e!plo"ees and other persons.
2se of oods referred to in pararaph ) (te! 1 of this Article shall be
suppl" of services for a consideration provided that the VAT calculated for
these oods on purchase !a" be deducted full" or proportionall".
(f alon with the services# secondar" deliver" of services or oods is
perfor!ed# it shall be dee!ed that onl" one service has been provided.
The 4inister shall specif" what is considered to be the use of oods
representin a part of the business assets of the taxpa"er for the personal
needs of the founder# e!plo"ees and other persons# and what is considered
to be renderin of services b" a taxpa"er free of chare and for the personal
needs of the founder# e!plo"ees and other persons referred to in pararaph
) of this Article.
Article -
Accordin to this Law# suppl" of oods and services shall not
include:
1. Transfer of whole or part of the propert"# for or free of chare# or as
e5uit"# if the ac5uirer is alread" a taxpa"er or beco!es a taxpa"er b"
such transfer# and continues to perfor! the activit"'
$. Transfer of proprietar" rihts over used vehicles or vessels if the
transferor is not a taxpa"er accordin to this Law'
)
%. *ivin business sa!ples free of chare in usual 5uantities for that
purpose to bu"ers or future bu"ers'
). *ivin ifts of low value# if occasionall" iven to different persons.
(n case of transfer of whole or part of the propert" referred to in
pararaph 1 ite! 1 of this Article# the transferee shall replace the
transferor.
The 4inister shall specif" what is considered to be the usual 5uantit"
of business sa!ples and a ift of low value referred to in pararaph 1# ite!s
% and ) of this Article.
18!#t !f 6!!ds
Article .
The i!port of oods shall be an" entr" of oods into the custo!s
territor" of the Republic.
111 TAXPA3ER A$D TAX DE9TOR"
Ta5a-e#
Article 0
A taxpa"er (hereinafter: taxpa"er) shall be a person who
independentl" and in the course of his6her activit" perfor!s a suppl" of
oods or services# or i!ports oods.

The activit" referred to in pararaph 1 of this Article shall be an"
per!anent activit" of a !anufacturer# sales!an or service provider for
the purpose of ainin inco!e# includin the activities such as:
exploitation of natural resources# ariculture# forestr" and independent
activities.
A taxpa"er shall also be considered to perfor! activit" when
perfor!in activit" within the business unit.
A taxpa"er shall be a person on behalf and for the account of
who! services are rendered# or oods are delivered or i!ported.
,
A taxpa"er shall be a person who renders services or delivers
oods# on his own behalf and for the account of another person.
Article 7
Accordin to this law# the Republic and its bodies# bodies of
territorial autono!" and local self+overn!ent# as well as leal entities
leall" founded for the purpose of perfor!in overn!ent activities
shall not be considered taxpa"ers if the" perfor! the suppl" of oods and
services in the course of overn!ent activities or for the purpose of
perfor!in overn!ent activities.
The Republic# bodies# and leal persons referred to in pararaph 1
of this Article shall be considered taxpa"ers if the" perfor! suppl" of
oods and services taxable in accordance with this law outside their
overn!ent activities# i.e. outside the activities of the overn!ent
ad!inistration that are taxable under the provisions of this Law.
Ta5 Debt!#
Article 18
Accordin to this Law# tax debtor shall be:
1. Taxpa"er referred to in Article 0 and Article 7# pararaph $ hereof'
$. Tax representative appointed b" a forein person without a head
office or a per!anent orani9ational unit in the Republic# and who
perfor!s suppl" of oods and services in the Republic'
%. Recipient of oods and services# if the forein person referred to
in (te! $ of this pararaph does not appoint a tax representative'
). :erson who states the VAT in an invoice or other docu!ent
servin as the invoice (hereinafter: the invoice)# if not oblied to
calculate and pa" the VAT accordin to this Law'
,. :erson who i!ports oods.
(f the tax debtor referred to in pararaph 1 (te! $ and % of this Article
is a taxpa"er at the sa!e ti!e# he6she shall be oblied to fulfill the
obliations prescribed b" this law# except to issue an invoice.
-
1V% PLA2E A$D T1:E O; "UPPL3 O; GOOD" A$D "ERV12E"
A$D
TAX PO1$T
Place !f sul- !f 6!!ds
Article 11
The place of suppl" of oods shall be the place:
1. where the oods are at the !o!ent of dispatch or transport to the
recipient or# at the recipient;s order to a third part"# if the oods are
dispatched or transported b" the supplier# recipient or a third part"# at
their order'
$. of buildin or installin of oods# if the oods are built or installed b"
the supplier or a third part"# at the re5uest of the supplier'
%. where the oods are at the !o!ent of deliver"# if deliver" is bein
carried out without dispatch i.e. transportation'
). where water# electricit"# as# and heatin ener" are received.
(n case of suppl" of oods in the course of co!!ission or
consin!ent activities# the place of suppl" of oods carried out b" a
co!!ission aent or a consinee shall be deter!ined in accordance with
pararaph 1 of this Article for deliver" to the co!!ission aent or the
consinee.
Place !f sul- !f se#7ices
Article 1$
The place of suppl" of services shall be the place where the service
provider perfor!s his6her activit".
(f suppl" of services is carried out throuh a business unit# the place
of suppl" of services shall be the location of the business unit.
As an exception to pararaphs 1 and $ of this Article# the place of
suppl" of services shall be:
.
1. :lace where real estate is located# for the suppl" of services which are in
direct relation to real estate# includin activities perfor!ed b" an aent and
evaluation of real estate# as well as plannin# preparations# and perfor!ance
and supervision of construction wor3s'
$. :lace where transportation ta3es place# and if transportation ta3es place
both on the territor" of the Republic of Serbia and on the territor" of another
countr" (hereinafter: international transport)# the provisions of this Law
shall be applied onl" to the part of the transportation that ta3es place in the
Republic'
%. :lace where the services have actuall" been rendered# in the followin
cases:
1) Services in the field of culture# arts# science# sport# education and
science# entertain!ent and si!ilar services# includin the services of
orani9in entertain!ent prora!s# as well as related services'
$) Auxiliar" transport services# such as loadin# unloadin# reloadin
and si!ilar services'
%) Services of the appraisal of !ovable propert"'
)) <or3s perfor!ed on !ovable propert"'
). :lace where the recipient of services perfor!s activit" or has a business
unit throuh which the service is perfor!ed# or the head office or residence
of the recipient of the service# for the followin services:
1) Rentin of !ovable propert"# except !eans of transportation'
$) Teleco!!unication services'
%) Ta3in over the responsibilit" for partial or full restraint fro!
underta3in certain activities or exercisin certain rihts'
)) Services in the field of co!!ercial advertisin'
,) Transfer and assin!ent of cop"rihts# patents# licenses# trade!ar3s
and si!ilar intellectual propert" rihts# and !a3in these available'
-) =an3in# financial services and insurance services includin re+
insurance# except rental of safe deposit boxes'
.) Services provided b" consultants# enineers# law"ers# auditors# and
si!ilar services#
0) &ata processin and providin infor!ation'
7) Suppl" of personnel'
18)Services rendered electronicall"# as well as radio and TV services'
0
11)4ediatin in the course of renderin services under sub+ite!s 1+18 of
this ite!.
,. :lace where oods are delivered or services are rendered# if these are
sub>ect to !ediation not included in (te! ) sub+ite! 11 of this pararaph.
Place !f 18!#t !f G!!ds
Article 1%
The place of i!port of oods shall be an" point of entr" of oods into
the custo!s territor" of the Republic.
Ti8e !f "ul- !f G!!ds
Article 1)
The da" of suppl" of oods shall be:
1. The da" when dispatch or transport of the oods to the recipient or# at
the re5uest of the recipient# to a third part"# beins# if the oods are
dispatched or transported b" the provider# recipient# or a third part"#
at their order'
$. The da" when the recipient ta3es over the oods fro! the supplier# or
a third part" at his re5uest# in case of buildin or installin the oods'
%. The da" of transfer of the riht of disposal over oods to the
recipient# if deliver" of oods does not include dispatch or transport'
). The da" of readin the a!ount of received water# electricit"# as and
heatin ener" perfor!ed b" the provider with a view to deter!inin
consu!ption.
,. The da" of entr" of oods into the custo!s territor" of the Republic.
(n case of co!!ission or consin!ent activities# the ti!e of deliver"
of oods b" the co!!ission aent or a consinee shall be deter!ined in
accordance with pararaph 1 of this Article for the deliver" to the
co!!ission aent or consinee as well.
:rovisions of pararaph 1 and $ of this Article shall also appl" to
partial deliveries.
7
The partial deliver" referred to in pararaph % of this Article shall be
an" deliver" of certain parts of econo!icall" !easurable deliver" where a
special fee has been areed upon.
Ti8e !f sul- !f se#7ices
Article 1,
A service shall be considered rendered when:
1. (ndividual renderin of services has been co!pleted'
$. Leal basis for renderin of service has been ter!inated+ in case of
deliverin ti!e+li!ited or unli!ited services.
(f periodical invoices are to be issued for deliver" of services# suppl"
of services shall be co!pleted on the last da" of the period for which the
invoice is issued.
:artial service shall be considered rendered when deliver" of that part
of the service has been co!pleted.
The partial service referred to in pararaph % of this Article shall be a
service where a special fee has been areed for certain parts of econo!icall"
!easurable service.
Ta5 !int
Article 1-
The tax liabilit" shall bein on the first da" of an" of the followin
activities:
1. Suppl" of oods and services'
$. ?ollection# if the fee or a part of the fee has been collected prior to
the suppl" of oods and services'
%. @n the da" of beco!in liable to custo!s duties at i!port of oods#
and if there is no such liabilit"# the tax liabilit" shall bein on the da"
when beco!in liable to such duties.
18
V% TAX 9A"E A$D TAX RATE
Ta5 base at sul- !f 6!!ds and se#7ices
Article 1.
Tax base (hereinafter: the base) at suppl" of oods and services shall
be the a!ount of fee (in cash# oods or services) that has been received or is
to be received b" the taxpa"er for the oods delivered or services rendered#
includin subsidies directl" related to the price of such oods or services#
not includin the VAT# unless otherwise provided b" this Law.
The base shall also include:
1. 1xcise# custo!s duties and other i!port duties# as well as other public
revenues# except VAT'
$. All secondar" expenses that the taxpa"er chares a recipient of oods and
services.
The base shall not include:
1. &iscounts ranted to the recipient of oods or services at the ti!e of
suppl" of oods or services'
$. A!ounts chared b" the taxpa"er on behalf and for the account of
another person# if that a!ount has been transferred to the person on
behalf and for the account of who! the taxpa"er has perfor!ed the
collection.
(f the fee or a part of the fee has not been stated in cash# but in the
for! of suppl" of oods and services# the tax base shall be the !ar3et value
of such oods or services on the da" of deliver" of such oods or services#
not includin the VAT.
Article 10
The base in case of suppl" of oods and services referred to in Article
) pararaph ) and Article , pararaph ) hereof shall be purchase price# i.e.#
cost price of such or si!ilar oods and services at the !o!ent of suppl".
11
As to pararaph 1 of this Article# the VAT shall not be included in the
base.
(f transportation b" bus has been carried out b" a person without a
head office in the Republic# the base shall be the averae transportation fee
for each particular transport.
The !anner of deter!inin the fee !entioned in pararaph % of this
Article shall be specified b" the 4inister.
9ase at i8!#t !f 6!!ds
Article 17
(n case of i!port of oods# the base shall be the value of i!ported
oods deter!ined b" the custo!s reulations.
The base referred to in pararaph 1 of this Article shall also include
the followin:
1. 1xcise# custo!s duties and other i!port duties# as well as other public
revenues# except for the VAT'
$. All secondar" costs incurred until reachin the first destination in the
Republic.
The first destination# accordin to pararaph $ ite! $ of this Article#
shall be the place indicated in the dispatch note or other transport docu!ent#
and if not indicated# the place of the first transship!ent of oods in the
Republic.
Article $8
(n case of i!port of oods that have been te!poraril" exported b" the
taxpa"er for the purpose of refine!ent# processin# reprocessin and
finishin (hereinafter: refine!ent)# repair or construction# the base shall be
the fee that has alread" been paid or is to be paid b" the taxpa"er for
refine!ent# repair or construction# and if the fee is not to be paid# the base
shall be the increase in value resultin fro! refine!ent# repair or
construction.
1$
As for pararaph 1 of this Article# the provisions of Article 17
pararaph $ of this Law shall be applied.
2han6e !f ta5 base
Article $1
(f the tax base for suppl" of oods and services liable for taxation has
been chaned# the taxpa"er who has delivered oods or rendered services#
shall be oblied to correct the VAT a!ount that# on the basis of this#
represents his6her liabilit"# in accordance with the chane.
The liabilit" under pararaph 1 of this Article shall also appl" to the
persons referred to in Article 18 pararaph 1 ite!s $ and % hereof.
(f the base has been additionall" chaned due to return of oods or
cancellation of the contract# the taxpa"er who has perfor!ed suppl" of
oods and services !a" correct the VAT a!ount onl" if the taxpa"er for
who! the suppl" of oods and services has been perfor!ed# a!ends the
deduction of the input VAT# and if he6she notifies in writin the supplier of
oods and services.
The taxpa"er !a" correct the base for the a!ount of the fee that has
not been collected onl" on the basis of a court rulin on the closed
ban3ruptc" proceedins or enforced settle!ent.
(f the taxpa"er# who corrected the base in accordance with pararaph
) hereof# receives the fee or part of the fee for the delivered oods and
services for which the correction of the base is allowed# the taxpa"er shall
be oblied to assess the VAT for the received a!ount of the fee.
The correction of the base !entioned in pararaphs 1+) of this
Article shall be perfor!ed in the tax period in which the chane has
occurred.
(f the base for i!port of oods liable for VAT has chaned in
accordance with the custo!s reulations# the provisions of this Law shall be
applied.
1%
2alculati!n !f 7alues stated in f!#ei6n cu##enc-
Article $$
(f the fee for suppl" of oods and services is stated in forein
currenc"# the !ean rate of the central ban3 which is in effect on the da" of
the oriination of tax liabilit" shall be applied for conversion of that value
into do!estic currenc".
(f the base for i!port of oods is stated in forein currenc"# the
custo!s reulations deter!inin the custo!s value# which are in effect on
the da" of the oriination of tax liabilit"# shall be applied for conversion of
such value into do!estic currenc".
Ta5 #ate
Article $%
The eneral VAT rate for taxable suppl" of oods and services or
i!port of oods shall be 10 A.
The special VAT rate of 0 A shall be applied to the followin suppl"
of oods and services# or i!port of oods:
1) =read# !il3# flour# suar# edible sunflower# !ai9e# rape# so"bean and
olive oil# edible ani!al and veetable fats'
$) /resh and fro9en fruits and veetables# !eats and fish# and es'
%) 4edicines included in the list of !edicines to be sold on prescription
and !ade out fro! the funds for health insurance# in accordance with
the health insurance reulations'
)) @rthotic and prosthetic !eans# as well as !edical !eans+ products
that are suricall" i!planted in the oranis!'
,) &ial"sis !aterials'
-) /ertili9ers# pesticides# seed stoc3# nurser" stoc3 and co!plete fodder
!ixtures for ani!al feedin'
.) Textboo3s and teachin aids'
0) &ail" newspapers'
7) 4onoraphs and serial publications'
18) /irewood'
1)
11) Acco!!odation in hotels# !otels# resorts# recreation centers and
ca!ps
1$) 2tilit" services.
1%) Batural as delivered to individual producers throuh the as
distribution networ3'
The 4inister shall specif" what is considered to be oods and
services referred to in pararaph $ ite! 1# and ) +1$ of this Article#
accordin to this Law.

V1% TAX EXE:PT1O$"
Ta5 e5e8ti!ns f!# sul- !f 6!!ds and se#7ices
<ith #i6ht t! deducti!n !f the inut ta5
Article $)
The VAT shall not be paid for:
1. Transportation and other services related to i!port of oods# if value
of such services is included in the base referred to in Article 17
pararaph $ hereof'
$. Suppl" of oods sent or dispatched abroad b" the taxpa"er or a third
part" upon the order of the taxpa"er'
%. Suppl" of oods sent or dispatched abroad b" a forein recipient or a
third part" upon the order of the forein recipient'
). Suppl" of oods dispatched abroad b" a forein recipient as personal
luae# provided that:
1) The oods are dispatched before the expir" of three calendar
!onths upon deliver" of such oods'
$) The total value of delivered oods is hiher than 18 888 dinars#
includin the VAT'
,. 1ntr" of oods into the free 9one# except the oods for end
consu!ption in the free 9one'
-. :rovidin of transportation and other services to the users of the free
9one directl" related to entr" of oods into the free 9one'
.. The wor3s perfor!ed on !ovable propert" obtained b" a forein user
of the service in the Republic or i!ported for the purpose of
refine!ent# repair or construction# and which is to be transported or
1,
dispatched abroad upon refine!ent# repair or construction b" the
provider of the service# forein recipient or a third part" wor3in
under their order'
0. Transportation and other services in direct relation with the export#
transit or te!porar" i!port of oods# except the services VAT
exe!pted without riht to tax deduction in accordance with this Law'
7. (nternational air transport of passeners# whereb" the non+resident air
co!pan" is free fro! taxation onl" under a reciprocit" rule'
18.&eliver" of aircraft# servicin# repairs# !aintenance# charter and
rentin planes used !ainl" for a chare in the international air traffic#
as well as deliver"# rentin# repairs and !aintenance of the oods
used for e5uippin such aircraft'
11.Suppl" of oods and services intended to !eet direct needs of the
aircraft referred to in ite! 18 of this pararaph'
1$.(nternational river transport of passeners b" ship# whereb" non+
resident co!pan" for international river transport b" ship is free fro!
taxation onl" under reciprocit" rule'
1%.&eliver" of ships# servicin# repairs# !aintenance and rentin ships
used !ainl" for a chare in international river transport# as well as
deliver"# rentin# repairs and !aintenance of the oods used for
e5uippin such ships'
1).Suppl" of oods and services used to !eet direct needs of the ships
referred to in (te! 1% hereof'
1,.&eliver" of old to the Bational =an3 of Serbia'
1-.*oods and services intended to !eet:
1) official needs of diplo!atic and consular representative offices#
$) official needs of international orani9ations# if that is provided
for b" international contract'
%) :ersonal needs of per!anent staff of diplo!atic and consular
representative offices# includin !e!bers of their fa!ilies'
)) :ersonal needs of per!a!nent staff of international
orani9ations# includin !e!bers of their fa!ilies# if that is
provided for b" international contract'
1..4ediatin services related to the suppl" of oods and services
referred to in ite! 1+ 1- of this pararaph.
Tax exe!ption referred to in pararaph 1 ite! % of this Article shall
not appl" to suppl" of oods transported b" a forein recipient on his own
for the purpose of furnishin or suppl"in sports vessels# sports aircraft and
other !eans of transportation for personal needs.
1-
Tax exe!ption referred to in pararaph 1 ite! 1- sub+ite!s 1 and %
hereof shall appl" onl" under reciprocit" rule and upon confir!ation of the
4inistr" of /orein Affairs.
:ursuant to this Article# the forein recipient of oods or services
shall be:
1. A person who is a taxpa"er and whose head office is outside the
Republic'
$. A person who is not a taxpa"er and whose residence or head office is
outside the Republic.
The 4inister shall prescribe the !anner and the procedure of
reali9ation of tax exe!ption !entioned in pararaph 1+% of this Article.
Ta5 e5e8ti!n f!# the sul-
!f 6!!ds and se#7ices <ith!ut #i6ht t! deducti!n !f the inut ta5
Article $,
The VAT shall not be paid for financial transactions and circulation
of capital# as follows:
1) Transactions and !ediatin activities while dealin with leal
tenders# except for paper !one" and coins not used as leal
tender or havin nu!is!atic value'
$) Transactions and !ediatin activities while dealin with shares#
interest in co!panies and associations# bonds and other
securities# except transactions related to 3eepin and
!anae!ent of securities'
%) ?redit operations# includin !ediation'
)) 2nderta3in liabilities# uarantees and other !eans of securin
pa"!ent# includin !ediation'
,) Transactions and !ediatin while dealin with deposits# current
and "ro accounts# pa"!ent orders# as well as pa"!ent
operations and transfer'
-) @perations and !ediation when dealin with receivables#
chec3s# bills and other si!ilar securities# except for collectin
receivables for other persons.
The VAT shall not be paid for suppl" of the followin:
1.
1) Service of insurance and re+insurance# includin the acco!pan"in
services of an insurance !ediator and aent (representative)'
$) Land (aricultural# construction# built or not built)'
%) Structures# except for suppl" of structures referred to in Article )
pararaph % ite! . of this Law'
)) Service of rentin flats and buildins# if used for housin purposes'
,) Shares# securities# postal orders# ad!inistrative fees and sta!ps b"
their value in the Republic'
-) :ostal services rendered b" a public co!pan"# as well as deliver" of
the related oods'
.) 4edical treat!ent in health care facilities in accordance with the
reulations on health care# except phar!acies and phar!aceutical
institutions# includin care# board and lodin for patients in such
institutions'
0) 4edical services rendered b" doctors# dentists or other persons in
accordance with the reulations on health care'
7) Services of dental prosthetics delivered b" a dental technician# and
the sa!e services delivered b" a dentist'
18)Transfer of hu!an orans# tissues# bod" fluids and cell# blood and
!other;s !il3'
11)Renderin of social welfare services# child and "outh welfare
services# services of social care institutions# and related suppl" of
oods and services perfor!ed b" the persons reistered for such
activities'
1$)=oard and lodin for students in student dor!itories and si!ilar
institutions# as well as related suppl" of oods and services'
1%)1ducation services (ele!entar"# secondar" and universit"
education)# and professional re+trainin# as well as suppl" of oods
and services related to these and perfor!ed b" persons reistered
for such activities# if these activities are carried out in co!pliance
with the reulations definin that do!ain'
1))Services in the field of culture and related suppl" of oods and
services# rendered b" non+profit entit" reistered for such activit"'
1,)Services in the field of science and related suppl" of oods and
services# rendered b" non+profit entit" reistered for such activit"'
1-)Renderin of services of reliious character b" the reistered
reliious orani9ations# and related suppl" of oods and services'
1.):ublic broadcastin# except the services of co!!ercial nature.
10)Services of orani9in a!blin'
10
17)Renderin of services such as sports and ph"sical culture to the
persons enaed in such activities and b" non+profit entities
reistered for perfor!in such activities.
The 4inister shall prescribe the !anner and the procedure of ainin
riht to tax exe!ption referred to in pararaph $ (te! .# 11# 1$# 1%# 1)# 1,
and 10 of this Article.
Ta5 e5e8ti!ns !n i8!#t !f 6!!ds
Article $-
The VAT shall not be paid for the i!port of the followin oods:
1. The oods the suppl" of which is VAT+free in accordance with
Article $) pararaph 1 (te! ,# 18# 11 and 1%+1-# and Article $,
pararaph 1 (te! 1 and $ and pararaph $ ite! , and 18 hereof'
$. The oods te!poraril" i!ported and then exported aain in the
course of the custo!s procedure# as well as the oods underoin
refine!ent and followin the disposal principle'
%. The oods te!poraril" i!ported and then exported aain in an
unaltered condition in the course of the custo!s procedure'
). The oods for which refinin under custo!s control has been ranted
in the course of the custo!s procedure'
,. Transit of oods in the course of the custo!s procedure'
-. The oods for which custo!s storae has been ranted in the course
of the custo!s procedure'
.. The oods for which exe!ption fro! custo!s duties has been
prescribed in accordance with Article 17$ pararaph 1 (te! 1+18 and
Article 17% pararaph 1 (te! - of the ?usto!s Law (C@fficial *a9ette
of the Republic of SerbiaC# no. .%68%).
V11% 1$PUT TAX
Definiti!n
Article $.
The input tax shall be the VAT a!ount calculated in the previous
stae of suppl" of oods and services# or paid at i!port of oods# and which
the taxpa"er !a" deduct fro! his VAT liabilit".
17
2!nditi!ns f!# deducti!n !f inut ta5
Article $0
The taxpa"er !a" ain the riht to deduction of the input tax if the
taxpa"er uses or will use the oods ac5uired in the Republic or i!ported#
includin the ac5uisition of e5uip!ent and structures for perfor!in the
activit"# or received services# for the followin suppl" of oods and
services:
1) Suppl" of oods and services liable for VAT'
$) Suppl" of oods and services exe!pted fro! VAT in accordance
with Article $) of this Law'
%) Suppl" of oods and services perfor!ed abroad# if the riht to
deduction of the input tax would have been applied to such suppl"#
had the suppl" been perfor!ed in the Republic.
The taxpa"er shall be entitled to deduction of the input tax if havin:
1) An invoice for the input tax a!ount !ade out b" the other taxpa"er
participatin in the suppl"# in accordance with this Law'
$) &ocu!ent on co!pleted i!port of oods# statin the input tax# i.e.
certif"in that the recipient or i!porter has paid the stated VAT at
i!port.
(n the tax period in which the conditions fro! pararaph 1 and $ of
this Article have been !et# the taxpa"er !a" deduct the input tax fro! the
VAT liabilit"# as follows:
1) The calculated and stated VAT liabilit" for suppl" of oods and
services that has alread" been perfor!ed or is "et to be perfor!ed b"
another taxpa"er enaed in the suppl"'
$) The VAT that has been paid at i!port of oods.
The riht to deduction of the input tax shall beco!e effective on the
da" of !eetin the conditions fro! pararaph 1+% of this Article.
The tax debtor referred to in Article 18 pararaph 1 ite! $ and % of
this Law !a" be entitled to deduction of the input tax provided that the
taxpa"er has paid the VAT for the fee received for the oods and services in
$8
accordance with this law# and if the received oods and services are used for
the suppl" of oods and services liable for VAT.
E5ceti!ns f#!8 deducti!n !f inut ta5
Article $7
The taxpa"er shall not be entitled to deduct the input tax on the basis
of the followin:
1) Ac5uisition# production and i!port of vehicles# !otorc"cles# vessels
and aircraft and spare parts# as and supplies for their needs# as well
as rentin# !aintainin# repairin and other services related to the use
of these !eans of transport'
$) Representational costs of the taxpa"er.
%) Ac5uisition or i!port of carpets# electric household appliances#
television and radio sets# wor3s of fine and applied arts and other
decorative ite!s for office pre!ises'
)) Acco!!odation expenses and travel and !eal allowances.
1xceptionall" fro! pararaph 1 ite! 1 of this Article# the taxpa"er
shall be entitled to deduct the input tax in case of usin the !eans of
transportation and other !eans exclusivel" for:
1) Suppl" and rentin of the stated !eans of transportation and other
oods'
$) Transportation of passeners and oods# or drivers trainin for the
stated !eans of transportation.
Ri6ht t! #!!#ti!nal deducti!n !f inut ta5
Article %8
(f the taxpa"er uses delivered or i!ported oods for the purposes of
its own activities# or receives services in order to carr" out suppl" of oods
and services with or without riht to deduction of the input tax# the taxpa"er
!a" be entitled to proportional deduction of the input tax.
The proportional part of the input tax corresponds to the part of the
suppl" of oods and services with riht to deduction of the input tax# not
includin the VAT# within the total suppl" not includin the VAT
(hereinafter: percentae of proportional deduction).
$1
:ercentae of proportional deduction for a tax period shall be
deter!ined b" puttin into proportion suppl" of oods and services with
riht to deduction of input tax not includin VAT and total suppl" of oods
and services not includin VAT and perfor!ed fro! Danuar" 1 of the
current "ear till the expir" of the tax period for which tax return is filed.
The proportional tax deduction shall be deter!ined b" appl"in the
percentae of proportional deduction to the input tax a!ount reduced b" the
a!ount referred to in Article $7 pararaph 1 hereof.
The 4inister shall specif" the !anner of deter!inin proportional
deduction.
2!##ecti!n !f deducti!n !f inut ta5 in case !f chan6ed base
Article %1
(f the base of taxable suppl" of oods and services has been chaned#
the taxpa"er for who! the suppl" of oods and services has been carried
out# shall be oblied to correct the deduction of the input tax ranted to
hi!6her on the basis of this# in accordance with that chane.
The correction of deduction of the input tax stated in pararaph 1 of
this Article shall also refer to the recipient of oods or services referred to in
Article 18 pararaph 1 ite! $ and % of this Law.
&eduction of the input tax referred to in pararaph 1 of this Article
shall be corrected in case of returnin the oods# annullin the contract# and
on the basis of court rulin on the closed enforced settle!ent# in accordance
with Article $1 pararaph % and ) of this Law.
(n case that the VAT for i!port of oods# deducted as input tax# has
been increased# reduced# refunded# or the taxpa"er is free fro! VAT# the
taxpa"er shall be oblied to correct deduction of the input tax in accordance
with the chane on the basis of a custo!s docu!ent or a decision of the
custo!s bod".
&eduction of the input tax shall be corrected in the tax period in
which the base has been chaned.
2!##ecti!n !f deducti!n !f inut ta5 f!# e=ui8ent and
st#uctu#es f!# e#f!#8in6 acti7ities
Article %$
$$
The taxpa"er who ained riht to deduction of the input tax for
ac5uisition of e5uip!ent and structures for perfor!ance of activities# shall
be oblied to correct deduction of the input tax# if no loner !eetin the
conditions for exercisin this riht# within , "ears fro! the first use in case
of e5uip!ent ac5uisition# or within 18 "ears fro! the first use in case of
ac5uisition of structures.
?orrection of deduction of the input tax shall be perfor!ed for the
period between the deadlines referred to in pararaph 1 of this article and
the period in which the taxpa"er has !et the conditions for entitle!ent to
deduction of the input tax.
The taxpa"er shall also be oblied to correct the deduction of the
input tax when he6she co!pletes the suppl" of e5uip!ent and structures for
perfor!ance of the activit" before expir" of the ti!e li!its referred to in
pararaph 1 of this Article.
(n case of transfer referred to in Article - pararaph 1 ite! 1 of this
Law# the ti!e li!its referred to in pararaph 1 of this Article shall not be
ter!inated.
The transferor of propert" referred to in pararaph ) of this Article
shall be oblied to sub!it the data relevant for correction !entioned in
pararaph 1 of this article to the transferee.
The 4inister shall specif" what is considered to be e5uip!ent and
structures for perfor!in activities# in accordance with this law# as well as
the !anner of correctin the deducted input tax.
V111% "PE21AL TAX REG1:E
"8all ta5a-e#s
Article %%
A person whose total suppl" of oods and services# except suppl" of
e5uip!ent and structures for perfor!in the activit"# (hereinafter: total
suppl") has not exceeded $.888.888 dinars in the past 1$ !onths# or who# in
case of startin activit"# esti!ates that his total suppl" will not exceed
$.888.888 dinars in the next 1$ !onths (hereinafter: entrepreneur)# shall not
be liable for VAT for the perfor!ed suppl" of oods and services.
The entrepreneur shall not be entitled to declare VAT in the invoices
or other docu!ents or to deduct the input tax# and shall not be oblied to
3eep the records prescribed b" this Law.
(f total suppl" of the entrepreneur exceeds 1.888.888 dinars in the
past 1$ !onths or if the entrepreneur esti!ates that his total suppl" shall
$%
exceed 1.888.888 dinars in the next 1$ !onths# the entrepreneur !a"# at the
beinnin of a calendar "ear# decide to pa" the VAT b" filin a reistration
for! prescribed in accordance with this law to the co!petent tax bod" no
later than b" Danuar" 1, of the current "ear.
As for pararaph % of this Article# the VAT liabilit" shall last for at
least $ calendar "ears.
2pon expir" of the deadline referred to in pararaph ) of this Article#
the taxpa"er !a" sub!it the re5uest for ter!ination of his6her VAT liabilit"
to the co!petent tax bod" no later than b" Danuar" 1, of the current "ear.
;a#8e#s
Article %)
The taxpa"er liable for citi9en inco!e tax on inco!e fro! ariculture
and forestr" in the Republic accordin to the land reistr" (hereinafter:
far!ers)# shall be entitled to co!pensation on the basis of the VAT
(hereinafter: the VAT co!pensation)# under conditions and in the !anner
defined b" this law.
The far!ers who perfor! suppl" of aricultural and forest products
or provide aricultural services to the taxpa"ers shall be entitled to the VAT
co!pensation.
(f the far!ers perfor! suppl" of oods and services referred to in
pararaph $ of this Article# the taxpa"er shall be oblied to calculate the
VAT co!pensation of ,A for the value of the received oods and services#
on which the docu!ent on calculation is to be issued (hereinafter: the
receipt).
The taxpa"ers referred to in pararaph % of this Article shall be
entitled to deduct the VAT co!pensation a!ount as the input tax# provided
that the" have paid that co!pensation and value of received oods and
services to a far!er.
At the beinnin of the calendar "ear# the far!er !a" decide on
pa"!ent of VAT b" sub!ittin a reistration for! prescribed b" this Law to
the co!petent tax bod" not later than Danuar" 1, of the current "ear#
provided that his6her total suppl" of aricultural and forest products or
aricultural services for the past 1$ !onths exceeds 1.888.888 dinars.
As to pararaph , of this Article# the far!er shall be liable for VAT
for at least $ calendar "ears.
$)
2pon expir" of the deadline referred to in pararaph - of this Article#
the far!er !a" sub!it a re5uest for ter!ination of VAT liabilit" to the
co!petent tax bod" no later than Danuar" 1, of the current "ear.
T#a7el a6enc-
Article %,
Travel aenc"# in accordance with this Law# shall be a taxpa"er who
provides tourist services and acts on his behalf# and receives oods and
services directl" used b" passeners fro! other taxpa"ers (hereinafter:
previous tourist services) for orani9in the travel.
Tourist service provided b" a travel aenc" shall be considered a
uni5ue service in accordance with this Law.
The location of providin the uni5ue tourist service shall be
deter!ined in co!pliance with Article 1$ pararaph 1 and $ of this Law.
The base of uni5ue tourist service provided b" travel aenc" shall be
the difference between the total fee paid b" the passener and actual costs
paid b" travel aenc" for previous tourist services# with the deduction of
VAT included in that difference.
As for Article , pararaph ) of this Law# the total fee in ter!s of
pararaph ) of this Article shall be the a!ount referred to in Article 10 of
this Law.
Travel aenc" !a" deter!ine the base in accordance with pararaphs
) and , of this Article for roups of tourist services or for all tourist services
provided in the tax period.
/or the tourist services referred to in pararaph 1 of this Article#
tourist aenc" shall not be entitled to state VAT in the invoices or deduct
the input tax on the basis of previous tourist services stated in the invoice.
Used 6!!ds+ !b4ects !f a#t+ c!llecti!n <!#> and anti=uities
Article %-
The base for suppl" of used oods# includin used vehicles# ob>ects of
art# collection wor3 and anti5uities shall be the difference between the
sellin and purchasin price of the oods (hereinafter: taxation of
difference)# with deduction of VAT included in that difference.
$,
The base referred to in pararaph 1 of this Article shall be applied if#
for ac5uirin oods# the supplier was not liable for VAT or carried out
taxation of the difference referred to in pararaph 1 of this Article.
As for Article ) pararaph ) of this Law# the sellin price for
calculation of the difference shall be the a!ount stated in Article 10 of this
Law.
/or the suppl" of oods fro! pararaph 1 of this Article# the taxpa"er
shall not be entitled to state the VAT in the invoices or other docu!ents# or
to deduct the input tax.
The 4inister shall specif" what is considered to be the ob>ect of art#
collection wor3 and anti5uities referred to in pararaph 1 of this Article.
1X% TAXPA3ER O9L1GAT1O$" ;OR "UPPL3 O; GOOD" A$D
"ERV12E"
Article %.
Taxpa"er shall be oblied to:
1) sub!it a VAT for! (hereinafter: reistration for!)'
$) issue invoices on co!pleted suppl" of oods and services'
%) 3eep the records in accordance with this Law'
)) deter!ine and pa" the VAT# and file tax declarations.
Re6ist#ati!n !f VAT a-e#s and thei# #e8!7al f#!8 the #e6iste#
Article %0
The taxpa"er whose total suppl" for the past 1$ !onths has exceeded
$.888.888 dinars# or who# when startin a business activit"# esti!ates that
suppl" will exceed $.888.888 dinars in the next 1$ !onths# shall be oblied
to file a reistration for! to the co!petent tax bod" not later than until the
expir" of the first deadline for filin a periodical tax return.
The followin persons shall not be liable to file a reistration for!:
1) persons referred to in Article 18 pararaph 1 (te! $) and %) hereof# if
the" are not taxpa"ers'
$) taxpa"ers without a head office or a per!anent business unit in the
Republic (hereinafter: forein taxpa"er)'
%) 1ntrepreneurs who have not decided to pa" VAT'
)) /ar!ers who have not decided to pa" VAT.
$-
The co!petent tax bod" shall issue a certificate on the co!pleted
VAT reistration to the taxpa"er.
The taxpa"er shall be oblied to notif" the co!petent tax bod" in
writin of an" chane of data relevant to calculation and pa"!ent of
VAT in its reistration for! fro! pararaph 1 of this Article within 1,
da"s fro! the da" of the chane.
The taxpa"er shall be oblied to enter the tax identification
nu!ber (hereinafter: T(B) in all docu!ents in accordance with this Law.
Article %7
At the re5uest for ter!ination of VAT liabilit" of the taxpa"er
referred to in Article %% pararaph % and Article %) pararaph , of this
Law# the co!petent tax bod" shall conduct an appropriate verification
and issue a certificate on re!ovin the taxpa"er fro! the VAT reister.
The co!petent tax bod" shall re!ove the taxpa"er fro! the VAT
reister# ex officio and upon conducted procedure# if the total suppl" of
the taxpa"er has not exceeded 1.888.888 dinars in the past calendar "ear.
The co!petent tax bod" shall then issue the certificate referred to in
pararaph 1 hereof.
Article )8
:rior to re!oval fro! the reister of businesses# or other reister
in accordance with the law (hereinafter: reister) of the bod" authori9ed
to 3eep the reister# the taxpa"er ter!inatin the activit" shall be oblied
to sub!it a re5uest for re!oval fro! the VAT reister to the co!petent
tax bod" not later than 1, da"s prior to the re!oval fro! the public
reister.
The co!petent tax bod" shall conduct the procedure and issue the
certificate on re!oval fro! the VAT reister.
The bod" authori9ed to 3eep the reister shall not be entitled to
re!ove the taxpa"er fro! the relevant reister without the certificate
referred to in pararaph $ of this Article.
The certificate referred to in Article %0 pararaph %# and Article %7
hereof and pararaph $ of this Article shall include the followin data:
1) na!e and address of the taxpa"er'
$) date of issue of certificate on VAT reistration or VAT dereistration'
$.
%) T(B'
)) date of startin the activit"# date of VAT reistration or
dereistration.

The co!petent tax bod" shall 3eep the records on all the taxpa"ers
who have been issued certificates fro! pararaph ) of this Article.
Article )1
The 4inister shall prescribe the reistration for! and the procedure
of VAT reistration and dereistration.
1ssuin6 !f in7!ice
Article )$
The taxpa"er shall be oblied to issue an invoice or other docu!ent
servin as an invoice (hereinafter: invoice) for each suppl" of oods or
services perfor!ed for other taxpa"ers.
The taxpa"er shall also be oblied to issue an invoice referred to in
pararaph 1 of this Article if he6she receives consideration or a part of the
consideration prior to suppl" of oods and services (advance pa"!ent)#
whereb" advance pa"!ents includin VAT are deducted in the final
state!ent.
The invoice shall include the followin data:
1. Ba!e# address and the T(B of the taxpa"er+ invoice issuer'
$. Location and date of issue# and invoice nu!ber'
%. Ba!e# address and the T(B of the taxpa"er+ invoice recipient'
). T"pe and 5uantit" of the delivered oods# or t"pe and volu!e of
services'
,. &ate of suppl" of oods and services and the a!ount of advance
pa"!ents'
-. =ase a!ount'
.. The applied tax rate'
0. VAT a!ount calculated for that base'
7. Bote on tax exe!ption.
$0
The invoice shall be issued in at least two copies# one of which shall
be 3ept with the issuer of the invoice# whereas others shall be iven to the
recipient of oods and services.
Article )%
The invoice referred to in Article )$ pararaph 1 of this Law shall
also be a docu!ent on calculation issued b" the taxpa"er as a recipient of
oods and services# on the basis of which the co!!ission for suppl" of
oods and services is to be deter!ined# if:
1. The taxpa"er+ recipient of oods and services is entitled to enter the
VAT in the invoice'
$. The taxpa"er issuin the docu!ent on calculation and the taxpa"er
receivin the docu!ent on calculation have areed that the
calculation of suppl" of oods and services is to be perfor!ed b" the
recipient of oods and services'
%. &ocu!ent on calculation has been sub!itted to the taxpa"er who
delivered oods or services'
). The taxpa"er who delivered oods and services has areed in writin
with the stated VAT.
Article ))
(f the VAT liabilit" reported b" the taxpa"er in his invoice is hiher
than the liabilit" accordin to the law# the taxpa"er shall be oblied to pa"
the stated VAT a!ount until it has been corrected in the new invoice.
Article $1 pararaph - of this law shall be applied for correction of
the invoice in accordance with this law.
(f the person who is not liable for VAT or has not perfor!ed suppl"
of oods and services# or is not entitled to declare VAT# declares VAT in
the invoice or so!e other docu!ent# he shall be liable for declared VAT.
Article ),
The 4inister shall specif" when the taxpa"er is under no obliation to
issue an invoice# when certain data !a" be o!itted in the invoice# or when
additional si!plification reardin issuin of an invoice !a" be provided
for.
Obli6ati!n !f >eein6 #ec!#ds
$7
Article )-
(n order to co!pute and pa" the VAT properl"# the taxpa"er shall
3eep the records that enable conductin an audit.
The 4inister shall specif" the for!# contents and !anner of record
3eepin.
Article ).
The taxpa"er shall be oblied to 3eep the records referred to in
Article )- hereof for at least , "ears upon the expir" of the calendar "ear to
which the records refer.
Ta5 e#i!d+ filin6 the ta5 #etu#n+ calculati!n and a-8ent !f the VAT
Article )0
Tax period for which the VAT is calculated# tax return is filed# and
the VAT is paid# shall be a calendar !onth for the taxpa"er whose total
suppl" in the past 1$ !onths has exceeded $8.888.888 dinars# or who
esti!ates that his6her total suppl" for the next 1$ !onths will exceed
$8.888.888 dinars.
Tax period for which the VAT is calculated# tax return is filed# and
the VAT is paid# shall be a calendar three+!onth period for the taxpa"er
whose total suppl" in the past 1$ !onths has not exceeded $8.888.888
dinars# or who esti!ates that his6her total suppl" for the next 1$ !onths will
not exceed $8.888.888 dinars.
The taxpa"er referred to in pararaph $ of this Article shall sub!it a
re5uest for chane of the tax period to one calendar !onth# to the co!petent
tax bod" b" Danuar" 1, of the current calendar "ear at the latest.
The approved tax period referred to in pararaph % of this Article
shall last for at least 1$ !onths.
/or the taxpa"ers startin a business activit" in the current calendar
"ear# the tax period shall be a calendar !onth for the current and the next
calendar "ear.
Article )7
%8
The taxpa"er shall be oblied to calculate the VAT for the relevant
tax period on the basis of the total suppl" of oods and services in that
period# if# in accordance with Article 1) hereof# such oods and services
have beco!e liable for taxation# and at the sa!e ti!e# the taxpa"er is a tax
debtor.
<hile calculatin the VAT# corrections fro! Article $1 and Article
))# pararaph 1 hereof shall be also ta3en into consideration.
The VAT calculated in accordance with pararaph 1 and $ of this
Article shall be reduced b" the input tax a!ount accordin to Article $0# %8
and %) hereof.
/or calculation of the input tax under pararaph % of this Article#
corrections referred to in Article %1 and %$ hereof shall also be ta3en into
consideration.
VAT at i!port shall be deducted fro! the VAT in the tax period in
which it has been paid.
1xceptionall" fro! the provision under pararaph 1 of this Article# in
case of transportation of passeners across the state border b" buses
perfor!ed b" forein taxpa"ers# the co!petent custo!s bod" shall calculate
the VAT for each transport (hereinafter: individual taxation of transport)
under reciprocit" rule.
Article ,8
The taxpa"er shall file the tax return to the co!petent tax bod" on the
prescribed for! within 18 da"s upon expir" of the tax period.
The taxpa"er shall file the tax return reardless of whether the
taxpa"er is liable for VAT in that tax period.
The tax debtors referred to in Article 18 pararaph 1 ite! $ and % and
Article )) pararaph % of this law shall also be oblied to file the tax return.
The tax return under pararaph % of this Article shall be filed for the
tax period in which the VAT liabilit" occurred.
Article ,1
/or each tax period# the taxpa"er shall be under obliation to pa" the
VAT e5ual to the positive difference between the total tax liabilit" a!ount
and the input tax a!ount# within the ti!e li!it for filin tax returns stated
under Article ,8# pararaph 1 hereof.
X% TAX RE;U$D A$D RE1:9UR"E:E$T
%1
Ta5 #efund
Article ,$
(f the input tax a!ount is hiher than the tax liabilit" a!ount# the
taxpa"er shall be entitled to a refund of the difference.
(f the taxpa"er decides not to ta3e the refund under pararaph 1 of
this Article# the difference shall be reconi9ed as the tax credit.
Refund under pararaph 1 of this Article shall be issued within ),
da"s# or within 1, da"s for taxpa"ers who !ainl" perfor! suppl" of oods
abroad# upon the expir" of the ti!e li!it for filin tax returns.
The *overn!ent of the Republic of Serbia shall define criteria for
deter!inin what# accordin to this law# shall be understood as suppl" of
oods and services !ainl" abroad.
The 4inister shall specif" the procedure of beco!in entitled to VAT
refund.
Rei8bu#se8ent !f VAT t! the f!#ei6n ta5a-e#
Article ,%
Rei!burse!ent of VAT shall be !ade to the forein taxpa"er# at
his6her re5uest# if the forein taxpa"er has settled liabilit" and !et the
conditions defined b" this law for beco!in entitled to deduction of the
input tax# provided that the forein taxpa"er:
1) does not carr" out the suppl" of oods and services in the
Republic#
$) renders onl" tax exe!pt services in accordance with Article $)#
pararaph 1# ite! 1 and 0 hereof'
%) perfor!s onl" the transportation of passeners liable to the
individual taxation of transport in accordance with Article )7# pararaph -
hereof.
As for pararaph 1 of this Article# VAT rei!burse!ent shall be !ade
under reciprocit" rule.
?u8anita#ian !#6anizati!ns
Article ,)
%$
@n the basis of the filed re5uest# the orani9ations reistered for
perfor!in hu!anitarian activities shall be entitled to VAT rei!burse!ent
for the oods delivered to the! in the Republic or for the i!ported oods#
provided that:
1) The suppl"6i!port of oods is taxable.
$) The VAT for the delivered oods has been stated in the invoice# in
accordance with Article )$ hereof# and pa"!ent has been !ade# or the VAT
liabilit" based on i!port of oods has alread" been settled'
%) The purchased oods have been dispatched abroad where used for
hu!anitarian# charitable or education purposes.
;!#ei6n d!n!#s
Article ,,
@n the basis of the re5uest# the forein donors providin financial
resources for reali9ation of the pro>ects in the Republic shall be entitled to
the VAT rei!burse!ent for the oods delivered to the! in the Republic or
the oods the" have i!ported# as well as for other services provided to
the!# if:
1) delivered or i!ported oods# or rendered services are taxable#
$) the VAT on suppl" of oods and services has been stated in the
invoice# in accordance with this law# and that the pa"!ent has been !ade#
and6or the VAT liabilit" based on the i!port of oods has alread" been
settled#
%) the donor funds for the pro>ects are based on the aree!ent entered
with Serbia and 4ontenero# i.e. the Republic# and the tax costs are not to
be covered b" the received financial assets.
Rei8bu#se8ent !f inut ta5 t! a f!#ei6n citizen
Article ,-
At the re5uest of a forein citi9en not liable for taxation and without a
residence in the Republic# the VAT rei!burse!ent shall be carried out
under conditions laid in Article $) pararaph 1 ite! ) hereof.
%%
Article ,.
The 4inister shall specif" the !anner and procedure of tax
rei!burse!ent referred to in Article ,%+,- hereof.
X1% "PE21AL REGULAT1O$" ;OR 1:PORT O; GOOD"
Article ,0
?usto!s reulations shall be applied to the VAT on i!port of oods#
unless otherwise provided for b" this Law.
Article ,7
The custo!s bod" conductin the custo!s proceedins shall be
responsible for calculatin and collectin VAT on i!port of oods# unless
otherwise provided for b" this Law.
X11% PE$ALT3 PROV1"1O$"
Article -8
The taxpa"er E leal entit" shall be fined fro! 188.888 to 1.888.888
dinars for the violation# provided that he6she:
1) fails to fulfill the liabilities provided for b" this Law (Article 18#
pararaph $)'
$) does not correct the VAT liabilit"# or does not calculate the VAT
in case of chane of the tax base (Article $1)'
%) exercises the riht to deduction of the input VAT# without havin
docu!entation necessar" for that (Article $0# pararaph $)'
)) deducts the input VAT for deliver" of oods and renderin of
services without bein entitled to that (Article $7 pararaph 1)'
,) fails to correct the input VAT deduction (Article %1)
-) fails to correct the input tax deduction for e5uip!ent and structures
for perfor!ance of activities (Article %$# pararaph 1+%)'
%)
.) fails to provide the recipient with the data necessar" for correction
of the input VAT (Article %$# pararaph ,)'
0) states the VAT in the invoice or other docu!ent# or deducts the
input VAT without bein entitled to it (Article %%# pararaph $# Article %,#
pararaph .)'
7) deducts the VAT co!pensation a!ount as the input tax without
havin paid that VAT co!pensation and value of received oods and
services (Article %) pararaph ))'
18) does not issue the invoice (Article %.# ite! $ and article )$)'
11) does not 3eep the prescribed records (article %.# ite! % and
Article )-)'
1$) does not calculate the VAT (Article %.# ite! ) and Article )7)'
1%) does not pa" the VAT within the prescribed ter! (Article %.# ite!
) and Article ,1)'
1)) does not sub!it the reistration for! within the prescribed ter!
(Article %0# pararaph 1 and Article -%)'
1,) does not infor! the TA of the chanes of data in his reistration
for! or on ter!ination of the activit" (Article %0# pararaph ) and Article
)8 pararaph 1)'
1-) does not state the T(B in all docu!ents prescribed b" this Law
(Article %0# pararaph ,)'
1.) does not 3eep the records within the prescribed ter! (Article ).).
The responsible person within the leal entit" shall also be fined with
18.888 to ,8.888 dinars for the violation referred to in pararaph 1 of this
Article.
The entrepreneur shall be fined with 1$.,88 to ,88.888 dinars for the
violation referred to in pararaph 1 of this Article.
The responsible person of the court# local self+overn!ent bod"#
law"erFs association# professional association# or an" other bod" or
orani9ation co!petent for enterin into the relevant reister# shall be fined
between 18#888 and ,8#888 dinars if such person re!oves the taxpa"er fro!
the reister without the certificate referred to in Article )8# pararaph %.
X111% TRA$"1T1O$AL
REG1:E
%,
Article -1
The *overn!ent of Republic of Serbia shall reulate application of
this law on the territor" of Autono!ous :rovince of Gosovo and 4etohi>a
in the period of effectiveness of Securit" ?ouncil Resolution of the 2nited
Bations @rani9ation# no. 1$)).
X1V% TRA$"1T1O$AL A$D ;1$AL PROV1"1O$"
Article -$
:rovisions of this law shall be applied to all suppl" of oods and
services and i!port of oods perfor!ed as of Danuar" 1# $88,.
(f the taxpa"er has paid sales tax for the issued invoices or received
advance pa"!ents b" and includin &ece!ber %1# $88)# and the suppl" of
oods6services has been perfor!ed after Danuar" 1# $88,# the taxpa"er !a"
reduce the VAT liabilit" for delivered oods and services in the tax period
b" the sales tax a!ount that has been paid.
(f deliver" of oods6services is perfor!ed in parts in ter!s of Article
1)# pararaph ) and Article 1,# pararaph % hereof# provisions of this Law
shall be applied to that part of the suppl" of oods and services that has
been perfor!ed beinnin with Danuar" 1# $88,# and provisions of the Law
on Sales Tax shall be applied to the part perfor!ed b" and includin
&ece!ber %1# $88).
Taxpa"er shall be oblied to prepare the list of issued invoices and
received advance pa"!ents referred to in article $ hereof and sub!it it to
the co!petent tax bod" b" Danuar" 1,# $88, at the latest.
Article -%
The person who has !ade or esti!ates that he6she will !a3e total
suppl" of oods and services exceedin $.888.888 dinars in the 1$ !onths
precedin the da" of filin a VAT reistration for! referred to in Article %.
ite! 1 hereof# shall be oblied to file a VAT reistration for! to the
co!petent tax bod" b" Septe!ber %8# $88) at the latest.
The person who has !ade or esti!ates that he6she will !a3e total
suppl" of oods and services exceedin 1.888.888 dinars in the 1$ !onths
precedin the da" of filin a VAT reistration for! referred to in pararaph
%-
1 of this Article# !a" file a VAT reistration for! to the co!petent tax
bod"# but not later than Septe!ber %8# $88).
Article -)
Accordin to this Law# on &ece!ber %1# $88)# the VAT pa"ers shall
be under obliation to !a3e the list of inventories of tobacco products#
alcoholic beveraes# coffee# !otor fuel# diesel fuel and heatin oil found on
the location and intended for further suppl"# and deter!ine the sales tax on
oods for these# which is calculated at purchase and paid throuh the
purchase price or at i!port.
The taxpa"er !a" use the tax deter!ined under pararaph 1 of this
Article as the input tax in accordance with provisions of this Law if the
taxpa"er uses these products for suppl" of oods and services# and if he is
entitled to deduction of the input tax.
The input tax referred to in pararaph $ of this Article !a" be
deducted in the a!ount proportional to the perfor!ed suppl" of oods and
services in future tax periods.
The taxpa"er shall not be entitled to refund of the deter!ined sales
tax liabilit" referred to in pararaph 1 of this Article.
The taxpa"er shall be under obliation to sub!it the inventor" lists
referred to in pararaph 1 hereof as well as the list of suppliers# that is# list
of custo!s declarations for the products referred to in pararaph 1 hereof# to
the co!petent tax bod" b" Danuar" 1,# $88,.
The 4inister shall specif" !anner of ainin riht to deduction of
sales tax as input tax.
Article -,
Accordin to this law# the VAT pa"ers shall be oblied to !a3e an
inventor" of the newl" built structures and the structures that are bein
built# on &ece!ber %1# $88).
The newl" built structures not delivered or paid b" &ece!ber %1#
$88) shall be liable for taxation in accordance with the law reulatin
propert" taxes.
The value of structures# buildin of which is in proress# and which
are to be delivered fro! Danuar" 1# $88,, shall be deter!ined on &ece!ber
%1# $88)# and these structures shall be liable for taxation in accordance with
the law reulatin propert" tax.
%.
The value of structures referred to in pararaph % of this Article and
deter!ined fro! Danuar" 1# $88, shall be liable for taxation in accordance
with this law.
The taxpa"er shall be oblied to sub!it the inventor" lists referred to
in pararaph 1 of this Article to the co!petent tax bod" b" Danuar" 1,# $88,
at the latest.
Article --
The Law on Sales Tax (C@fficial *a9ette of the Republic of SerbiaC#
no. $$6$881# .%6$881# 086$88$ and .86$88%) shall be applied for calculation
and pa"!ent of sales tax on oods and services# liabilities of which have
occurred b" &ece!ber %1# $88).
Article -.
<ith the da" this Law co!es into effect# the Law on Value Added
Tax shall cease to be valid (H@fficial *a9ette of the /RIJ# no. .)677#
)6$888# 76$888# -76$888 and .86$881).
The Sales Tax Law (C@fficial *a9ette of the RSC# no.$$681# .%681#
0868$ and .868%) and reulations passed on the basis of that law shall cease
to be valid on Danuar" 1# $88,# whereb" &ecree on 4anner of Geepin
Records of Suppl" throuh fiscal ?ash Reisters and Schedule for
(ntroduction of such ?ash Reisters (C@fficial *a9ette of the RSC# no.,68%#
%768%# .$68%# $68)# and %168)) and reulations passed on the basis of that
decree shall be applied until the application of the law reulatin
introduction and 3eepin records of suppl" throuh fiscal cash reisters.
Article -0
This Law shall co!e into effect on the eihth da" fro! the da" of its
publishin in the H@fficial *a9ette of the Republic of SerbiaJ and shall be
applied as of Danuar" 1# $88,# except provisions of Article %. ite! 1# Article
-%# and provisions hereof reulatin authorit" to pass reulations# that shall
be applied fro! the da" this Law co!es into effect.
%0