- In accordance with practice of developed states, a possibility has been introduced for both non-resident legal entities and individuals to register for VAT in Serbia, provided they carry out supply of goods and render services in Serbia. Liability to register for VAT in Serbia shall apply to non-resident payers under the same terms as resident VAT payers. In order to register for VAT, a non-resident payer who carries out supply of goods and render services in Serbia would have to appoint a tax representative. Please take into account particular restrictions that apply to appointment of a VAT representative in Serbia:
- A foreign entity may appoint only one tax representative;
- Tax representative of a foreign entity can be a natural person or a legal entity, having residence/seat registered in Serbia and being registered for VAT in Serbia in a period of at least 12 months prior to submitting tax representative appointment request;
- Permanent establishment of a foreign entity cannot be appointed as tax representative of the entity;
- Tax representative shall not be appointed in case it has unsettled public revenue liabilities or in case it was lawfully convicted for executing tax criminal offence;
- Tax representative of a foreign entity is solidary liable for all VAT liabilities of the foreign entity-taxpayer, particularly referring to payment of VAT liability, fines and penalty interest arising from such VAT liability.
- With regards to electricity, natural gas and heating/cooling energy trading, place of supply rules are changing, concept of taxpayer is being introduced for distributors of such goods as well as tax exemption on importation of the goods in question providing that the goods are to be delivered via transmission, transport and distributive network.
- Definition of taxpayer has been extended to all recipients of goods and services in the construction industry as well as all recipients of goods and services (VAT payers) for supply made by another VAT payer in case of transfer of a mortgaged real estate, pledged property and goods or services that are under enforcement procedure.
- Current legislation denies right of a taxpayer to claim back input VAT in case of procurement of carpets, electrical appliances used in household, TV and radio devices, work of art and other decorative items used for furnishing administrative premises. Proposed amendments to the law cancel the restriction.
- Right to claim back input VAT in relation to meal supplies and transport of employees shall be denied to taxpayers.
- VAT payer shall become liable to report the Tax Authorities, at year end and together with the last VAT return in a calendar year, on:
- Supplies made during a calendar year to a VAT payer by an entity not registered for VAT, with regards to secondary material supplies and services connected with such supplies; and
- Supplies made during a calendar year to a VAT payer by an agricultural producer not registered for VAT, with regards to agricultural and forest products supplies as well as agricultural services rendered.
- VAT payers shall be liable to prepare and submit VAT calculation summary for each VAT period, together with the VAT return.
- Unique VAT return submission deadline is to be introduced for all VAT payers – within 15 days from the end of a VAT period (a month or a quarter).
taxnewsletter_september2015_eng_0.pdf