Serbia: Serbia clarifies registration of foreign entities for VAT purposes

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Serbia: Serbia clarifies registration of foreign entities for VAT purposes

Rafailovic

Aleksandra Rafailovic

On May 23, 2016, the Serbian Ministry of Finance announced its clarifying opinion on the tax representation of a non-resident entity for the purpose of implementing the Law on Value Added Tax and the obligation to register for VAT.

Although the concept of tax representatives for non-residents existed in previous versions of the VAT Law, the latest amendments to the Act, adopted in October 2015, define conditions that VAT representatives should fulfill. It also allows non-residents providing goods and services in the Republic of Serbia to register for VAT via a proxy. Instructions on the process of registration were further described in the opinion issued by the finance ministry on May 23.

The criteria that tax representatives must fulfil includes mandatory registration in Serbia, having a VAT taxpayer status for at least the last 12 months, no tax arrears, and no convictions for a criminal tax offense. The decision on eligibility is issued by the Tax Administration within 15 days after completing the VAT representative registration process on the tax authority's website.

Today, only a limited number of companies are registered as VAT tax representatives for foreign entities. This is most likely because of the joint and severe responsibility for all obligations of the foreign entity that arises for VAT representatives. In addition, even though the rulebook and opinion explain most of topics, some practical aspects are still left unclear – including details about procedures for payments and VAT refunds.

Having all this in mind and considering that registration is not mandatory, but rather on a voluntary basis, it remains to be seen whether this new facility will be increasingly used by non-resident entities and their resident associates, or whether the VAT burden will remain with the domestic recipients of goods and services.

Aleksandra Rafailovic (aleksandra.rafailovic@eurofast.eu)

Eurofast, Serbia Office

Tel: +381 11 3241 484

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

The Institute of Chartered Accountants in England and Wales also queried whether HMRC resources could be better spent scrutinising larger entities
Grant Thornton’s Austria tax head likens his practice to an escape room, shares his football coaching ambitions, and explains why tax is cool
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 EMEA Tax Awards
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2025 Asia-Pacific Tax Awards
The fates of pillars one and two hang in the balance after the US successfully threw its weight around in G7 and Canadian negotiations
Rafael Tena tells ITR about the ‘crazy’ Mexican market, ditching the hourly rate, and refusing to grow his fledgling firm in an ‘unstructured way’
It should be easy for advisers to be transparent about costs, Brown Rudnick partner Matthew Sharp said in response to exclusive ITR in-house data
The sprawling legislation phases out Joe Biden-era green tax incentives for businesses; in other news, the UK will reportedly maintain its DST despite US pressure
New French legislation should create a more consistent legal environment for taxing gains from management packages, say Bruno Knadjian and Sylvain Piémont of Herbert Smith Freehills Kramer
The South Africa vs SC ruling may embolden the tax authority to take a more aggressive approach to TP assessments, an adviser tells ITR
Gift this article