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Serbia: VAT legislative changes effective July 2018

Serbia: VAT legislative changes effective July 2018

Provisions under new value added tax (VAT) legislation generally will be effective 1 July 2018. Provisions relating to VAT refunds for foreign entities will be effective 1 January 2019.


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The VAT law was passed by the Serbian parliament in April 2018, and was published in the official gazette (RS number 30) on 20 April 2018. Among the measures in the new VAT law are the following:

  • The issuance of an invoice will be deemed to be a "chargeable event" not just for intellectual property rights alone, and also for services that are directly linked to related supplies if provided by the same entity, when an invoice is issued before supply or payment.
  • The “special VAT rate” of 10% applies for the supply and import of full and supplementary mixtures for cattle feed.
  • There is a new exemption allowed (with right to deduct input tax) for certain supplies of goods entered into a “free zone” for transport and other related services.
  • The rules are revised for VAT refunds for foreign entities.


Read a May 2018 report (Serbian/English) [PDF 223 KB] prepared by the KPMG member firm in Serbia

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