Announced the abolition of parafiscal and local taxes and changes of VAT calculation for SMEs in Serbia

Belgrad, 11.07.2012.
The future ruling coalition SPS-SNS-URS on 10.07.2012. signed a Coalition Agreement in order to form the new Government of the Republic of Serbia.

From the perspective of tax legislation Coalition Agreement provides the implementation of the following changes:

  • The abolition of all republican levies introduced with non-tax legislation (so called: parafiscal levies);
  • Elimination of unnecessary local taxes and fees;
  • Small and medium-sized companies will be able to pay VAT only when receiving payment for the delivered goods/services, not when they invoice them;
  • Increase the threshold required for the entry of small enterprises in the VAT system;
  • For construction companies it will be provided that the investor is responsible for the VAT liability of the contractor, if not paying the work performed within the agreed timeframe.