Amendments to three tax laws and FX Law adopted in Serbia – April 2018

Belgrado, 03.05.2018.
At the session of the Serbian Parliament held on 19 April 2018 amendments were made to the three tax laws and FX law.

The following tax laws were adopted:

  • Law on Amendments and Supplements of Law on Tax Procedure and Tax Administration
  • Law on Amendments and Supplements of Law on Value Added Tax (VAT)
  • Law on Amendments and Supplements of Excise Law

These amendments were published in the ”Official Gazette of RS”, no. 30/2018 on 20 April 2018.

Amendments to the Law on Tax Procedure and Tax Administration

  • Tax Administration of Serbia shall get new business function starting from 1 January 2018 -  provision of tax services. Tax services include provision of legal aid to taxpayers, assistance in filling tax returns and compiling claims, informing the applicant what actions are taken in the tax procedure and adopted acts, receiving, processing and recording tax returns.
  • In the process of regular and forced collection of taxes, it is prescribed that collection can be made from savings deposits and all other income deposited in current accounts of taxpayers.
  • Tax documents and communication between Tax Administration and taxpayers shall be done also electronically.
  • Starting from 1 January 2019 taxpayers will be able to submit tax returns for the property tax electronically.
  • The possibility of sending reminders to taxpayers before sending the warning, i.e. before the initiation of the forced collection procedure. This possibility is envisioned to aid low-risk tax debtors which have a small amount of tax due or rarely appear as tax debtors

Amendments to the Value Added Tax Law prescribe the following:

  • Date of invoice as tax point (or time of supply) for the services of transfer, assignment and use of copyrights and related rights, patents, trademark licenses and other intellectual property rights is extended to include services that are directly related to abovementioned services, if performed by the same entity.
  • A lower VAT rate of 10% is prescribed also for a supplementary feed for livestock and not only for the complete feed mixture for livestock.
  • Parents  and guardians of children born by 30 June 2018 have the right to refund VAT for food and baby equipment.

 Amendments to the Law on excise duties

  • Exemption from paying excise tax on certain oil derivatives (liquefied petroleum gas) used for industrial purposes
  • Exemption from the payment of excise tax on certain LPG and other oil derivatives derived from oil fractions having a distillation range of up to 380oC and used as raw material or energy for industrial purposes;
  • Coffee imported for sale to diplomatic and consular offices should not be marked with control excise stamps.

Amendments to the FX Law

  • Residents can invest in long-term debt securities issued by legal entities with headquarters in EU Member States,
  • Full liberalization is prescribed for investments of residents in short-term securities issued by the issuer from the EU, as well as investments of non-residents with headquarters or residence in EU Member States in short-term securities in Serbia,
  • Two new bases for resident legal entity obtaining warranty and guarantee from a non-resident introduced: import of goods and services and performance of investment activities of non-resident in Serbia.