Law on Amendments to the Law on Value Added Tax (”Fig. Gazette” no. 93/2012), adopted by the National Assembly of the Republic of Serbia at the session of the Ninth Extraordinary Session in 2012, on 25 September 2012 is implemented from 01.01.2013, while the part of provisions are applicable from 01.10.2012 (the higher general VAT rate).
We highlights the following changes:
VAT rate in Serbia
Standard VAT rate is increased from 18% to 20%.
VAT compensation to agricultural producers is being increased from 5% to 8%. The new amendments of the Law exclude the possibility of paying this compensation in cash.
VAT registration and VAT period in Serbia
The mandatory VAT registration threshold is increased from RSD 4 million to RSD 8 million.
The limit for voluntary registration has been withdrawn (it used to be RSD 2 million), which means that all entities whose taxable supplies are below RSD 8 million voluntarily register for VAT.
Tax period will be a calendar month for:
- Taxpayer that had in the previous 12 months total turnover greater than RSD 50 million.
- Taxpayers applying cash accounting scheme,
- Taxpayers starting with the VAT activity for the first time.
Tax period s a calendar quarter for taxpayers whose total turnover does not exceed RSD 50 million.
VAT cash accounting scheme
Taxpayer whose total turnover in the previous 12 months is not greater than RSD 50 million and who fulfils certain conditions may submit a request for VAT cash accounting scheme. Under such scheme taxpayer pays VAT only on the part of collected receivables, but also exercises recovery right on paid liabilities towards his suppliers.
If VAT payer does not collect the receivable within six months from the supply date, he is obligated to pay outstanding VAT.
VAT refund for baby food and equipment
VAT Law amendments introduce the refund of VAT paid on purchase of baby food and equipment. VAT refund will be limited to RSD 70,000 in two years period. In order to apply for the refund the total net year income of parents shall not exceed RSD 960,000 while the value of their property must be below RSD 23,4 million.
More about VAT in Serbia on the following link: