At the session held on November 17, 2022, the Government of the Republic of Serbia adopted and referred to the parliamentary procedure several bills on amendments and additions to several laws.

Below we highlight several of the most significant changes and additions.

Law on electronic invoicing 

The Law on Electronic Invoicing includes the following amendments:

  • Expansion of the scope of transactions for which there is no obligation to issue an electronic invoice, namely for:
    Delivery of electricity and the service of downloading electricity into the energy system, except for the delivery of electricity for final consumption,
    Turnover of goods and services free of charge,
    Payment transactions which represent public revenue.
  • Request for the payment costs and awards in court and other proceedings, which the court funds cover, or other authority where the proceedings are conducted, based on the decision of the court or other authority,
  • Prescription of the obligation of self-employed income taxpayers and corporate income taxpayers, except for public and private sector entities, to apply for the use of the electronic invoice system before submitting a request for payment to a public sector entity,
  • Possibility of subsequent acceptance of a rejected electronic invoice,
  • Significant changes to the electronic recording of VAT calculations.

The application of the amendments to the Law on Electronic Invoicing begins on January 1, 2023, except for the provision that provides for the rejection of an electronic invoice, which authorities can subsequently accept, from June 1, 2023, for electronic invoices recorded in the Central Register of Invoices.

Law on citizen income tax and law on compulsory social insurance contributions

Amendments to the Law on Personal Income Tax and the Law on Contributions for Mandatory Social Security will apply from January 1, 2023, and below are some of the most important news:

  • Payment of the annual personal income tax via self-taxation on the income generated in the calendar year;
  • Increasing the tax-free amount of salary from 19,300 to 21,712 dinars,
  • Reduction of the contribution percentage for pension and disability insurance from 25% to 24%,
  • Extending the duration of the relief for newly employed persons until the end of 2023,
  • The new model of freelancers’ taxation.

Within 120 days from the entry into force of this law, i.e. on the eighth day from its publication in the “Official Gazette of the Republic of Serbia”, a secondary legal act will execute the Law on Personal Income Tax.

Law on property taxes

Amendments to the Law on Property Taxes apply from January 1, 2023, and among other changes, refer to:

  • The tax on the transfer of absolute rights also applies to the acquisition of the right to use a parking space in an open residential block or residential complex,
  • The method of calculating depreciation for completed additions to built objects,
  • As of January 1, 2024, local self-government units will carry out the determination, collection and control of inheritance and gift taxes and taxes on the transfer of absolute rights.

The property tax will be determined and paid per this law from the tax calculated for 2023. Inheritance and gift tax (i.e. tax on the transfer of absolute rights), for which the procedure started per new regulations, will be determined by applying the law that was in force on the date of the tax liability.