Amendments to three Serbian tax laws adopted - VAT, excise tax, tax procedure

Belgrado, 02.01.2017.
The National Assembly of the Republic of Serbia on 28th December 2016 adopted the amendments to three tax laws: Law on Value Added Tax, Excise Law and the Law on Tax Procedure and Tax Administration.

Laws are published in the ”Official Gazette of RS” no. 108 from 29th December 2016 and they came into force on 1st January 2017, while some provisions will be applied from a later date.

Law on Amendments and Supplements to the Law on Value Added Tax


  • • The law complies with EU regulations regarding the determination of the place of delivery of services, including the determination of the institute of the taxpayer for the purpose of applying the rules concerning the determination of the place of supply of services.
  • • The law eliminates the right to VAT refund for the purchase of food and equipment for babies. This measure will be subject to the laws governing social policy, which will be adopted in the future.
  • • Introduction of a special VAT rate (10%) to the sale of wood pellets and briquettes.
  • • The law defines the permanent establishment for the purposes of applying VAT.

Law on Amendments and Supplements to Excise Law

  • The Law prescribes moderate increase of the specific component of excise duty on cigarettes, in order to reach a minimum level of excise tax in the EU of 90 € per 1000 cigarettes in the category of the weighted average retail selling price or a minimum of 1.8€ per pack of cigarettes (the current level in Serbia is 54€ per 1,000 cigarettes).
  • The law Introduced the excise taxes on coffee that is processed on the territory of Serbia, not only from imports. It shall apply from 1st January 2018.

Law on Amendments and Supplements to Law on Tax Procedure and Tax Administration

  • Starting from 1st July 2017, the second-instance tax procedure appellate authority will be the Ministry of Finance, instead of Tax Administration. This is implementation of the principle of devolutive effect of appeal, meaning that authority for deciding on the appeal cannot be the within the authority from the first instance.
  • The law prescribes the fines for foreign persons in case that tax representative is not appointed in Serbia and is not registered as VAT taxpayer.