Serbia’s parliament has passed the Amendments to the VAT Law and the Law on Amendments to the Law on Electronic Invoicing, which was published in the Official Gazette, No. 94/2024, on 28 November 2024.
Amendments to the VAT Law
Preliminary VAT return
The VAT payer must submit the VAT return and preliminary VAT return by the deadline. In case of a failure, the tax authorities will request the preliminary VAT return. The new rules also remove the requirement to submit the POPDV form with the VAT return.
Change in tax base
If the tax base for a supply increases later, the taxpayer is required to adjust the VAT by increasing the due amount and issuing a debit note. A VAT payer can reduce VAT for a supply to another VAT payer if they issue a credit note and the recipient adjusts their input VAT.
Input VAT deduction requirements
The rules state that input VAT can only be deducted for a supply requiring an e-invoice if the e-invoice is accepted. A VAT payer can deduct input VAT for a tax period if the e-invoice is accepted by the day before the tax return is submitted for that period and no later than the 10th day of the following month, regardless of when the VAT e-invoice was issued.
Invoice cancellation
A VAT payer can reduce the tax base and VAT on a canceled invoice if they issue a new invoice when required and obtain confirmation from the recipient (also a VAT payer) that the VAT on the invoice was not used as input VAT and no VAT refund has been or will be requested.
VAT payer registration
Taxpayers with a total turnover exceeding RSD 8 million in the past 12 months are required to register as VAT payers with the tax authorities. This registration must be completed within five days of reaching the specified turnover threshold.
Change in the tax period
VAT payers can request to change their tax period from a calendar quarter to a calendar month between 20 to 31 December for the following year.
Effective dates
- The amendments take effect on 15 December 2024 and will be applicable starting 1 January 2025.
- The provision concerning the change of the tax period will come into effect on 20 December 2024.
- The regulations concerning the preliminary VAT return will take effect beginning with the VAT period of January 2026, covering January to March 2026.
Law on Amendments to the Law on Electronic Invoicing
Determining VAT status In SEF
System of Electronic Invoices (SEF) users must provide their VAT status in SEF within five days of being added to the user list. VAT payers must choose a calendar month or quarter for their tax period. As for users who didn’t declare their VAT status in SEF by 15 December 2024, relevant data will be added based on information from the Tax Administration.
Electronic VAT recording
The VAT electronic recording deadline is extended from 10 to 12 days after the tax period ends. The amendments also remove the exception that exempted retail supplies with a fiscal invoice from electronically recording VAT, and taxpayers must now record these supplies in summary records.
Electronic recording of input VAT
The deadline for electronically recording input VAT has been extended from 10 to 12 days after the end of the reporting period.
Penalty measures
Failing to update or disclose accurate information about an entity’s status may result in a misdemeanor penalty.
Effective dates
- The amendments take effect on 15 December 2024 and apply from 1 January 2025.
- The rules for determining entity status apply from 15 December 2024.
- The provisions for electronic VAT recording apply to tax periods starting after 31 December 2024
- The preliminary tax return requirements apply to tax periods starting after 31 December 2025.
