The Serbian Parliament has recently adopted amendments to the VAT law in order to harmonise its legislation further with the over-riding EU regulations.

The main changes to take place concerned the obligation to register for foreign companies and the place of supply of services.  These new rules came into force respectively in January and April 2017 and details are provided below:

  • It was confirmed that the threshold for mandatory registration applies only to domestic companies; an immediate registration for VAT (including via a VAT representative) is only applicable to foreign companies who make taxable supplies to non-taxable persons
  • The obligation to submit more detailed calculations to support the numbers in the VAT return has been postponed.
  • The place of supply rules for services have been aligned with those set out in the EU VAT Directive
  • A 10% VAT rate for wood briquettes and pellets is to be applied.