On February 1, 2023, the Serbian Parliament published Rulebook on Amendments to the Rulebook on Value Added Tax in the “Official Gazette of RS”, number 7/2023, which came into force.

The most significant amendments

We highlight the most significant amendments to the VAT Rulebook:

  • New rules for issuing invoices, i.e. electronic invoices;
  • New rules related to the existence of the obligation to issue invoices;
  • New rules for determining the VAT base;
  • VAT base reduction based on the subsequent fulfilment of the conditions for tax exemption is limited to only a few cases;
  • Obligation to calculate VAT based on the turnover of services of foreign persons without compensation;
  • Obligation applying the reverse charge method when the recipient of goods or services is a tax debtor;
  • New conditions for tax exemption based on the export of goods;
  • Exemption conditions based on the export of goods and the application of other tax exemptions (users of free zones, customs warehousing, international agreements and others) are specified;
  • New rules regarding the procedure in the event of a change of tax debtor after an advance payment (e.g. for turnover in the field of construction);
  • Activities scope within which the turnover of goods and services is considered as turnover in the field of construction has been narrowed;
  • The method of determining the tax debtor is changed when the status of the participant changes from the moment of advance payment to the moment of turnover (e.g. for the turnover of secondary raw materials);
  • The obligation to draw up an internal invoice is extended when the recipient of goods or services is a tax debtor (eg for works in the field of construction);
  • The mandatory use of the document on the change of the VAT base has been extended;
  • New forms: SNPDV and LNPDV.
  • Amendments to the VAT Rulebook came after the recent amendment to the Law on Value Added Tax and regulations related to fiscalization and electronic invoicing.