LAWON VALUE-ADDED TAX("Official Herald of the RS", Nos. 84/2004, 86/2004 - correction, 61/2005, 61/2007, 93/2012, 108/2013 and 6/2014 - harmonized dinar amounts) |
Article 1
Value-added tax (hereinafter: VAT) shall be introduced in the Republic of Serbia (hereinafter: the Republic).
VAT shall be a general consumption tax to be calculated and paid, unless otherwise prescribed by the present Law, at the delivery of goods and at providing services, in all the phases of production and trade of goods and services, as well as at the imports of goods.
Article 2
The proceeds from VAT shall belong to the budget of the Republic.
Article 3
The subject of VAT taxation shall be:
1) the delivery of goods and providing of services (hereinafter: trade of goods and services) effected by a taxpayer in the Republic against consideration, within the framework of performing an activity;
2) the imports of goods into the Republic.
Article 4
Trade of goods, in terms of the present Law, unless otherwise specified by the present Law, shall be the transfer of the right to disposition of material objects (hereinafter: goods) to a person who may thus dispose of such goods as an owner.
The term goods shall include also water, electric power, power gas and heating power.
In terms of the present Law, the following shall be considered as the trade of goods, too:
1) the transfer of the right of disposal of goods against consideration, on the ground of regulation or other act of a state authority, an authority of territorial autonomy, or of local self-government;
2) delivery of goods based on a sale contract with deferred payment which stipulates that the right of disposal shall be transferred at the latest by payment of the last installment;
2a) delivery of goods based on a leasing, or lease contract, concluded for a fixed period, for movable or immovable property, where none of the parties can terminate the contract if the parties comply with contractual obligations;
3) the transfer of goods by an owner to a commission agent, and on the part of the commission agent to a recipient;
4) the delivery of goods on the ground of a contract stipulating the payment of commission on sales at the moment of sale;
5) the transfer of goods by an owner to a consignee and by the consignee to a recipient of goods;
6) the delivery of goods manufactured or assembled at the order of a customer from the material of a supplier, except in the case of additions or other accessory materials;
7) the transfer of the right of disposal relating to structures or economically indivisible entireties within the framework of such structures;
7a) the transfer of the owner's share in structures or economically divisible entireties within the framework of such structures;
8) the exchange of goods for other goods or services.
The following shall be considered equal to the trade of goods against consideration:
1) taking of goods that are a part of business property of a taxpayer for personal needs of the founder, of the owner, of the employed personnel or other persons;
2) any other trade of goods without consideration;
3) indicated expenditure (short weight, wastage, damage and breakage) exceeding the quantity to be determined by an act ordained by the Government of the Republic Serbia.
The taking of goods and/or any other trade of goods referred to in paragraph 4 of the present Article shall be considered as the trade of goods against compensation on condition that the VAT calculated in the preliminary trade phase relating to such goods or to their component parts may be entirely or proportionally deducted, regardless of whether the right to deduct the preliminary tax was acquired.
Where a delivery of goods is coupled with an accessory delivery of goods or an accessory providing of services, it shall be considered that only one delivery of goods has been effected.
Transfer of disposal right on a building or economically divisible unit within the building that is considered as real estate in terms of the law governing the sale and purchase of real estate, shall not be deemed as accessory delivery of goods referred to in paragraph 6 of this Article.
While transferring whole property or its part, with or without compensation, or as an equity stake, delivery of each asset in the transferred property shall be deemed as a separate transfer.
In case of a delivery in succession of one and the same item of goods, where the initial supplier transfers the right of disposal directly to the last recipient of the goods in the row, every single delivery of an item of goods in succession shall be considered as a separate delivery.
The minister responsible for financial affairs (hereinafter: the minister) shall specify the criteria that determine when the handover of goods under a leasing or lease contract, shall be considered as trade of goods referred to in paragraph 3, item 2a) of this Article, as well as what is considered to be taking a goods that are part of the business property of a tax debtor, and any other trade of goods without consideration referred to in paragraph 4 of this Article.
Article 5
In terms of the present Law, the trade of goods shall include all the transactions and actions within the framework of performing the activities that are not the trade of goods specified in Article 4 of the present Law.
The trade of goods shall be also every omission to act or sufferance.
In terms of the present Law, the trade of services shall also include:
1) transfer, assignment or rental of copyrights and related rights, patents, licenses, trademarks, as well as other intellectual property rights;
2) providing of services against compensation on the ground of a regulation or other act of the State authorities, the territorial autonomy authorities or local self-government authorities;
3) handing over of goods manufactured or assembled by an order of the customer from customer's materials;
4) the exchange of services for the goods or services;
5) handing over of food and drinks for consumption on the spot;
6) (deleted);
7) the ceding of other shares or rights.
The following is equal to the trade of services against compensation:
1) usage of assets that are a part of the business property of a taxpayer, for personal needs of a founder, owner, employees or other persons, or usage of assets for non business purposes by the taxpayer;
2) provision of services by a taxpayer without remuneration in order to meet personal needs of the founder, owner, employees or other persons, or other provision of services by the taxpayer without remuneration for non business purposes
The use of goods specified in paragraph 4, item 1) of the present Article shall be considered as the trade of services against compensation on condition that the VAT, calculated in the preliminary trade phase regarding these goods, may be deducted entirely or proportionally, regardless of whether the right to deduct the preliminary tax was acquired.
Where a service is coupled with an accessory providing of services or a successory delivery of goods, it shall be considered that only one single service has been rendered.
While transferring whole property or its part, with or without compensation, or as an equity stake, each service provided by transfer of property shall be deemed as a separate transfer.
The minister shall specify what is considered to be usage of goods and provision of services referred to in paragraph 4 of this Article.
Article 6
In terms of the present Law, it is considered that the trade of goods and services was not performed in case of:
1) transfer of the entire property or its part, with or without compensation, or as an equity stake, if the acquirer is a tax payer or becomes a tax payer through such a transfer, and if he continues to be engaged in the same activity;
2) replacement of goods in the warranty period;
3) giving free trade samples in usual quantities for such purpose to buyers or prospective buyers; or to third parties for the purposes of analysis prescribed by an act of a competent authority;
4) giving of advertising materials and other low value gifts, if they are given occasionally to different persons.
Part of property referred to in paragraph 1, item 1) of the present Article is considered to be an entity which enables its acquirer to independently perform business activity.
When the property is transferred in its entirety or in its part, as in paragraph 1, item 1) of this Article, it is deemed that the acquirer takes the place of the transferor.
The minister shall regulate in detail the procedure of replacement of goods in the warranty period, what is deemed to be the transfer of the entire property or its part, with or without compensation, or as a equity stake, referred to in paragraph 1, item 1), as well as of what are considered to be usual quantities of trade samples, advertising materials and other low value gifts referred to in paragraph 1, items 3) and 4) of the present Article.
Article 7
The imports shall be every entering of goods into the customs area of the Republic.
Article 8
A taxpayer shall be a person independently engaged in the trade of goods and services, within the framework of his activity.
The activity specified in paragraph 1 of the present Article shall be a permanent activity of a manufacturer, a merchant or supplier of services with the aim of making revenue, including the activities of exploitation of natural resources, in the sphere of agriculture, forestry, and the independent professions.
It shall be considered that the taxpayer is engaged in an activity also if he performs it within the framework of a branch unit.
Taxpayer shall be a person on whose behalf and for whose account delivery of goods or providing of services is effected.
Taxpayer shall be a person effecting the delivery of goods and/or providing services on his own behalf and for the account of another person.
Article 9
The Republic and its authorities, the territorial autonomy and local self-government authorities, as well as legal entities established under law or other act of the Republic, territorial autonomy, or local government authority, for the purpose of execution of activities of the State administration or local government (hereinafter: the Republic, authorities and legal entities) , shall not be the tax payers in terms of the present Law if they are engaged in the trade of goods and services within the scope of their responsibility, or for the purpose of execution of activities of the State administration or local government.
The Republic, authorities and legal entities shall be the tax payers in trade of goods and services referred to in paragraph 1 of this Article if the tax exemption pursuant to paragraph 1 of this Article could lead to distortion of competition, as well as in the trade of goods and services outside of the scope of their responsibility, or outside the scope of activities of the State administration or local government, when such trade is taxable in accordance with the present Law. It shall be considered that exemption referred to in paragraph 1 of this Article could lead to distortion of competition, pursuant to the present Law, if the trade of goods and services referred to in paragraph1 of this Article1 of this Article, apart from the Republic, authorities and legal entities, is also conducted by some other entity.
Article 10
In terms of the present Law a tax debtor shall be:
1) a taxpayer referred to in Article 8 and Article 9, paragraph 2 of the present Law;
2) a tax proxy designated by a foreign national having neither a head office nor a permanent branch office, or permanent residence in the Republic, and who is performing the trade of goods and services in the Republic;
3) a recipient of goods and services, should the foreign national specified in item 2) of the present paragraph fail to designate a tax proxy;
4) a person who indicates the VAT in an bill or another document serving as a bill (hereinafter: bill), while such person is not a VAT tax debtor or has not performed trade of goods and services;
5) a person importing the goods.
6) (deleted)
Notwithstanding paragraph 1, item 1) of this Article, the tax debtor is:
1) a recipient of goods or services, VAT payer, for the trade of secondary raw materials and services that are directly related to those goods, carried out by another VAT payer;
2) a recipient of goods, VAT payer, for the trade of construction buildings and economically divisible units within these buildings, including ownership shares in such assets, carried out by another VAT payer, when the contract which regulates the trade of those assets stipulates that VAT shall be calculated for that trade in accordance with this Law;
3) a recipient of goods or services in the field of civil engineering, VAT payer, or a person referred to in Article 9 paragraph 1 this Law, for the trade carried out by the VAT payer, if the recipient of goods or services is the investor and if the supplier of goods or services is the general contractor, in accordance with the law governing planning and construction.
A tax debtor referred to in paragraph 1, items 2) and 3) of the present Article who is also a taxpayer, shall be obliged to meet the duties specified by the present Law for a taxpayer, except that of issuing a bill.
The Minister shall regulate what are considered to be secondary raw materials and services referred to in paragraph 2, item 1) of this Article.
IV PLACE AND TIME OF TRADE OF GOODS AND SERVICES AND TAKING PLACE OF TAX DUTY
Article 11
A place of the trade of goods shall be the place:
1) at which goods are situated at the moment of forwarding or carriage to the recipient or, at his order, to a third party, in the event the goods are forwarded or carried by a supplier, a recipient or a third party at his order;
2) of fitting or assembly of goods, should these be fitted or assembled by the supplier or, at his order, by a third party;
3) at which goods are situated at the moment of delivery, if the goods are delivered without forwarding and/or carriage;
4) of receiving water, electric power, power gas and heating power.
In the event of the trade of goods within the framework of commission or consignment transactions, the place of the trade of goods on the part of a commission agent or a consignee shall be determined, in conformity with paragraph 1 of the present Article, also for the delivery to the commission agent or the consignee.
The Place of Trade of Services
Article 12
A place of the trade of services shall be the place at which the supplier of services performs his activity.
Where the trade of services is performed through a branch unit, the location of the branch unit shall be considered as the place of trade of services.
By exception to paragraphs 1 and 2 of the present Article, considered as the place of trade of services shall be the place:
1) at which the immovable property is situated, in the event of the trade of services directly connected to such immovable property, including the activity of mediation and evaluation regarding the immovable property, as well as the project drawing up, preparation and carrying out of construction works and supervision over such works;
2) where a carriage is effected, while should the carriage be effected both in the Republic and abroad (hereinafter: international transport), the provisions of the present Law shall apply only to the portion of carriage effected in the Republic;
3) where a service is actually provided, in the event of:
(1) services in the spheres of culture, fine arts, sports, science and education, entertainment and show business services, including the services of performance organisers, as well as services connected to these;
(2) secondary services in the spheres of transport, such as loading, unloading and reloading operations and similar services;
(3) movable property evaluation services;
(4) works on movable property objects;
4) at which a recipient of services is engaged in an activity or at which he possesses a branch unit receiving the service, and/or the place of the head office or residence of the recipient of services, in the event of the following services:
(1) renting of movable property objects, except for vehicles on the ground of a rent a car contract;
(2) providing telecommunication services;
(3) taking over an obligation to desist, entirely or partially, from engaging in certain activity or exercising a certain right;
(4) services in the sphere of commercial advertising;
(5) transferring, ceding and renting copyrights, rights to patents, licenses, trademarks and other intellectual property rights;
(6) banking, financial transactions and transactions in the sphere of insurance and reinsurance, except for renting of safes;
(7) performed by advisers, attorneys-at-law, auditors and similar services;
(8) data processing and providing information, as well as giving information by telephone or in other manner;
(9) making available the personnel;
(9a) clinical trials of drugs and medical devices;
(9b) allowing connection to the natural gas network, and allowing connection to the network for electric power transmission;
(10) rendered by electronic devices, as well as radio and television services;
(11) mediating in the providing of services specified in sub-items (1) through (10) of the present item.
5) (deleted)
A place of the trade of mediation services, except for mediation services specified in paragraph 3, item 4), sub-item (11) of the present Article, shall be determined in accordance with the place of the trade of goods and services that are subject to mediation
The Minister shall specify what are considered to be services rendered by electronic devices referred to in paragraph 3, item 4) sub item (10) of this Article.
Article 13
The place of imports of goods shall be a place at which the imported goods are taken into the customs area of the Republic.
Article 14
The trade of goods shall take place on the day:
1) of the beginning of forwarding or carriage of goods to a recipient or a third party, if the goods are forwarded or carried by a supplier, a recipient or a third party, at their order;
2) of taking over of goods by the recipient in the event of building in, or assembling of goods by the supplier or, at his order, by a third party;
3) of the transfer of the right of disposal of goods onto the recipient, where the goods are delivered without forwarding and/or carriage;
4) of noting down of the quantity of received water, electric power, power gas and heating power effected by the supplier, for the purpose of calculating the consumption.
5) (deleted)
In the event of commission and consignment transactions, the time of delivery of goods by commission agent or a consignee shall be determined in conformity with paragraph 1 of the present Article, also for a delivery to the commission agent or the consignee.
The provisions of paragraphs 1 and 2 of the present Article shall apply to partial deliveries as well.
Partial deliveries referred to in paragraph 3 of the present Article shall exist also where a special fee is stipulated by contract for the delivery of specified portions of a commercially divisible delivery.
Article 15
A service is considered rendered on the day when:
1) a single provision of service is completed;
2) a legal basis for provision of services ceased to exist - in the event of provision of time limited or unlimited services.
Notwithstanding paragraph 1 item 2) of the present Article, when periodical bills are issued for provision of services, trade of services shall be considered rendered on the last day of the period for which the bill is issued.
A partial service shall be considered rendered at the time when provision of that part of the service ended.
Partial service specified in paragraph 3 of the present Article shall exist if a separate fee is contracted for specific portions of economically divisible service.
Article 15a
The time of import of goods originates on the day when the goods entered into the customs territory of the Republic.
Taking Place of Tax Obligation
Article 16
A tax obligation shall take place on the day at which one of the following actions is effected, at the earliest:
1) the trade of goods and services;
2) collection or payment if a consideration, or part of the consideration is billed, or paid in cash prior to the trade of goods and services;
3) taking place of the duty of payment of a customs debt, in the event of imports of goods, and should there be no such duty, on the day the obligation of paying such debt would have taken place.
Notwithstanding paragraph 1, items 1) and 2) of the present Article, tax obligation of the tax debtor referred to in Article 10, paragraph 1, items 2) and 3) of the present Law, originates on the day when this trade of goods and services is carried out.
Tax Base Applicable to Trade of Goods and Services
Article 17
Tax base (hereinafter: base) applicable to the trade of goods and services shall be the amount of consideration (in money, objects of property or services) that is received or should be received by a taxpayer for the goods delivered or services provided by the recipient of goods or services or a third party, including subsidies that are directly connected with the price of these goods or services, into which the VAT is not included, unless otherwise prescribed by the present Law.
The base shall also include:
1) the excise tax, customs duty and other import duties, as well as the remaining public revenue, except the VAT;
2) all accessory charges the taxpayer adds to the bill for the recipient of goods and services.
The base shall not include:
1) discounts and other price reductions granted to a recipient of goods or services at the moment of effecting the trade of goods or services;
2) amounts collected by a taxpayer on behalf and for the account of another, if he transfers such amount to a person on whose behalf and for whose account he has made the collection.
Where the consideration or a part of consideration is not effectuated in money, but in the form of trade of goods and services, the base to be considered shall be the market value of these goods and services on the day of their delivery, excluding the VAT.
Where trade of goods or services represent stakes of the business company, the basis to be considered shall be the market value of these goods and services on the day of their delivery, excluding the VAT.
Article 18
The base applicable to the trade of goods without consideration is deemed to be the buying price or the cost price of these or similar goods at the moment of trade.
The base applicable to the trade of services without consideration is deemed to be the cost price of these or similar services at the moment of trade.
In the event referred to in paragraphs 1 and 2 of the present Article, the VAT shall not be included in the base.
In the event of carriage of passengers by buses, effected by a person having no place of actual administration in the Republic, the base shall be the average fare for every single carriage.
The way of setting the fare specified in paragraph 4 of the present Article shall be regulated in detail by the minister.
The Base Applicable to the Import of Goods
Article 19
The base applicable to the import of goods shall be the value of the imported goods as specified by the customs regulations.
The base referred to in paragraph 1 of the present Article shall include as well:
1) the excise tax, customs duty and other import duties, as well as the remaining public revenues, except the VAT;
2) all accessory charges that have taken place until the first destination point in the Republic.
Considered as the first destination point, in terms of paragraph 2, item 2) of the present Article, shall be a place indicated in the delivery note or in another transportation document, and where such is not indicated, the place of the first reloading of goods in the Republic.
Article 20
At the imports of goods that are temporarily exported by a taxpayer for the purpose of refining, processing, finishing or remodeling (hereinafter: refining), repair or building into, the base shall be the price paid or to be paid by the taxpayer for the refining, repair or building into, while where such price should not be paid, the base shall be the increase in value originated through refining, repair or building into.
In the case of paragraph 1 of the present Article, the provisions shall apply of Article 19, paragraph 2 of the present Law.
Article 21
Should the base be changed for the VAT taxable trade of goods and services, a taxpayer who has delivered the goods or services shall be obliged to correct, in conformity with such change, the VAT amount owed by him on that ground.
The duty referred to in paragraph 1 of the present Article shall apply as well to persons specified in Article 10, paragraph 1, items 2) and 3) and paragraph 2 of the present Law.
Should the base be subsequently changed - reduced, the taxpayer who has effected the trade of goods and services may change the VAT amount only if the taxpayer - counterpart of the trade of goods and services - has corrected the deduction of the preliminary VAT, and if he has notified accordingly, in writing, the supplier of goods and services.
If the delivery of goods and services has been effected to a taxpayer who is not entitled to deduction of the preliminary VAT, and/or to a person who is not a VAT taxpayer, the change specified in paragraph 3 of the present Article may be effected by the taxpayer if he possesses a document relating to the reduction of compensation for the effected trade of goods and services to such persons.
A taxpayer may change the base by applying the part of the price that is not paid in, only on the ground of a finally binding court decision on the completed bankruptcy proceedings, and/or on the ground of a certified minutes on compulsory settlement with creditors..
Should a taxpayer who has changed the base in conformity with paragraph 5 of the present Article, receive the price, or a part of the price, for the delivered goods and services that have been the ground for permitting the change of the base, such taxpayer shall be obliged to calculate the VAT on the amount of price received by him.
The change of the base referred to in paragraphs 1 through 5 of the present Article shall be effected within the tax period in which the change has taken place.
If the consideration for the trade of goods and services is denominated in a foreign currency, an increase or decrease in the value of the dinar against foreign currency does not lead to a change in the tax base, provided that the determination of the base and the output VAT and collection of the consideration applied the same type of exchange rate for dinars in the same bank.
Should the base for the imports of goods and services that are subject to VAT be changed in conformity with customs regulations, the provisions of the present Law shall apply.
Accounting of Value Expressed in Foreign Currency
Article 22
Where the price for the trade of goods and services is expressed in foreign currency, the accounting of that value in domestic currency shall be done by applying the average rate of exchange of the Central Bank, or contracted exchange rate in effect on the day of the tax duty taking place.
Where the base for imports of goods and services is expressed in foreign currency, to be applied for the accounting of that value in domestic currency shall be the customs regulations specifying the customs value, applicable on the day of taking place of the tax duty.
Article 23
The general VAT rate for the trade of goods and services or imports of goods subject to taxation shall be 20%.
Special 10% VAT rate shall apply to the trade of goods and services or the imports of goods to the following items:
1) bread and other bakery products, milk and milk products, flour, sugar, edible sunflower oil, corn, turnip and soy bean oils, olive-oil, edible animal and vegetable fats and honey;
1a) (deleted)
2) fresh, refrigerated and frozen fruit, vegetable, meat, includingentrailsand other meat offal, fish and eggs;
2a) cereals, sunflower, soy beans, sugar-beet, and oleiferous rape;
3) medicines, including medicines for veterinary use;
4) orthotic and prothetic appliances as well as medical appliances - products that are built into the organism by surgical means;
5) dialyse material;
6) fertilizers, plant-protection substances, reproduction seeds; planting material, compost with mycelium, complete fodder mixture for livestock;
7) text-books and teaching appliances;
7a) (deleted)
8) daily newspapers
9) monographic and serial publications;
10) fuel wood;
11) accommodation in hotels, motels, resting houses, public homes and campsites;
12) services charged through tickets for the cinema and theater shows, fairs, circuses, amusement parks, concerts (music events), exhibitions, sporting events, museums and galleries, botanical gardens and zoos, if the trade of the service is not exempt from VAT;
12a) (deletetd)
13) natural power gas;
13a) thermal energy for heating purposes;
14) transfer of the right of disposal over residential buildings, economically divisible entireties within those buildings, as well as over equity stakes on such properties;
15) services that precede the supply of drinking water through water supply network, as well as drinking water other than bottled water;
16) treatment and disposal of storm water and wastewater;
17) management of municipal waste;
18) rubbish cleaning in the areas for public use;
19) rubbish cleaning in green spaces and coastal areas;
20) passenger transport in city and suburban public transportation;
21) managing cemeteries and funeral services.
The minister shall regulate the details of what shall be considered, in terms of the present Law, as goods and services specified in paragraph 2, items 1), 2), 2a), 4) through 11), and 15) through 21) of the present Article.
Tax Exemptions in the Trade of Goods and Services with the Right to Preliminary Tax Deduction
Article 24
VAT shall not be paid on the following:
1) transportation and other services relating to the imports of goods, where the value of these services is included in the base specified in Article 19, paragraph 2 of the present Law;
2) trade of goods shipped or forwarded abroad by a taxpayer or a third party at his order;
3) trade of goods shipped or forwarded abroad by a foreign recipient or a third party at his order;
4) trade of goods forwarded by a foreign recipient within the luggage carried with him abroad, if:
(1) the goods are forwarded prior to the expiration of three calendar months after the delivery of these goods;
(2) the total value of the delivered goods exceeds 150 EUR in dinar countervalue at the average rate of exchange of the National Bank, including the VAT;
5) entry of goods into a free trade zone, transportation and other services to users of free trade zones that are directly connected to this entry and trade of goods and services in the free trade zone, for which the tax payer - free trade zone user would be entitled to a preliminary tax deduction if those goods or services were purchased by him for the purpose of conducting activities outside the free zone
6) trade of goods that are in the procedure of customs warehousing;
6a) dispatch of goods to free-trade zones established in airports open for international transport with the organised passport and customs control, for the purpose of sale to passengers in conformity with customs regulations (hereinafter: duty-free shops), as well as on the delivery of goods from duty-free shops;
7) services relating to the works on movable goods acquired by a foreign recipient of service in the Republic, or imported for the purpose of refining, repair or building into, and which after the refining, repair or building into, are transported or forwarded abroad by the supplier of the service, the foreign recipient or a third party, at his order;
8) transportation and other services that are directly connected with the exports, transit or temporary imports of goods, except for the services that are exempted from the VAT without the right to tax deduction in conformity with the present Law;
9) services of international carriage of persons in air transportation, provided the tax exemption for a non-resident airline shall apply only in case of reciprocity;
10) deliveries of aircrafts, servicing, repair, maintenance, chartering and renting of aircrafts that are primarily used against consideration in international air transportation, as well as delivery, renting, repair and maintenance of goods intended for fitting out of these aircrafts;
11) trade of goods and services intended for direct needs of aircrafts specified in item 10) of the present paragraph;
12) services of international carriage of persons by ships in river transport, provided the tax exemption for a non-resident enterprise engaged in international carriage of persons in river transport shall apply only in case of reciprocity;
13) deliveries of ships, servicing, repair, maintenance and renting of ships that are primarily used against consideration in international river transport, as well as deliveries, renting, repair and maintenance of goods intended for fitting these ships;
14) trade of goods and services intended for direct needs of ships specified in item 13) of the present paragraph;
15) deliveries of gold to the National Bank of Serbia;
16) goods and services intended for:
(1) official needs of diplomatic and consular missions;
(2) official needs of international organisations, where this is provided for by an international treaty;
(3) personal needs of foreign personnel of diplomatic and consular missions, including the members of their families;
(4) personal needs of foreign personnel of international organisations, including the members of their families, where this is provided for by an international treaty;
16a) trade of goods and services effected in conformity with donation contracts concluded with the Serbia and Montenegro State Union, and/or the Republic, in part that is financed by donated funds, which contract provides that the acquired money resources will not be used for payment of the tax expenses;
16b) trade of goods and services effected in conformity with contracts on credit and/or loan concluded between the Serbia and Montenegro State Union and/or the Republic, and an international financial organization and/or other state, as well as between a third party and an international financial organization and/or other state, in which the Republic of Serbia appears as a guarantor and/or counter-guarantor, in part that is financed by donated funds, if such contract provides that the acquired money resources will not be used for payment of tax expenses;
16c) trade of goods and services based on international treaties, if such treaties envisage tax exemption, except for international treaties specified in items 16a) and 16b) of the present paragraph;
17) mediation services relating to the trade of goods and services specified in items 1) through 16) of the present paragraph.
Tax exemption specified in paragraph 1 of the present Article shall be applied even if fees and/or part of the fees have been paid prior to conducted transaction.
Tax exemption referred to in paragraph 1, item 3) of the present Article shall not apply to the trade of goods carried by a foreign recipient himself for the purpose of fitting or equipping sports boats, sports aircrafts and other transportation means intended for private use.
The exemption referred to in paragraph 1, item 16), sub-items (1) and (3) of the present Article shall be effected on condition of reciprocity, and on the ground of a certificate issued by the ministry of foreign affairs.
In terms of the present Article, a foreign recipient of goods or services shall be understood to mean a person who:
1) is a taxpayer and whose place of real administration is outside the Republic;
2) is not a taxpayer, and whose residence or head office is outside the Republic.
The mode and the procedure of putting into effect of the tax exemption referred to in paragraphs 1 through 3 of the present Article shall be prescribed by the minister.
Tax Exemptions in Trade of Goods and Services without the Right to Preliminary Tax Deduction
Article 25
VAT shall not be paid in the trade of money and capital on the following transactions:
1) transactions, and transaction mediation in legal means of payment, except for paper money and coins that are not used as legal means of payment, or that have a numismatic value;
2) transactions, and mediation in transactions with stock, shares in companies and corporations, bonds and other securities, except for transactions relating to keeping and managing of securities.;
3) credit transactions, including mediation, and monetary loans;
3a) (deletetd)
4) at assuming of obligations, guarantees and other security means, including mediation;
5) transactions, and mediation in transactions regarding deposits, current and transfer accounts, payment orders, as well as payment transactions and remittances;
6) transactions, and mediation in the transactions with monetary claims, checks, bills of exchange and other similar securities, except for the collection of claims for other persons;
7) business activities of investment funds’ management companies in accordance with regulations defining investment funds;
8) business activities of voluntary pension funds’ management companies in accordance with regulations defining voluntary pension funds and pension plans.
VAT shall not be paid also in the trade of the following:
1) insurance and reinsurance services, including the accompanying services of insurance brokers and agents (representatives) in the sphere of insurance;
2) lands (agricultural, forest, construction sites - with structures or without structures), as well as letting of such land;
3) buildings, except for the first transfer of the right of disposal over newly constructed building facilities or economically divisible units within the framework of such buildings and the first transfer of equity stake in the newly constructed building facilities or economically divisible units within these facilities, as well as trade of buildings and equity stakes in the buildings where the contract under which the trade of those goods is conducted, which was concluded between the VAT payers, stipulates that VAT shall be calculated for this trade, provided that the acquirer may fully deduct the output VAT as preliminary tax;
3a) goods for which the tax payer did not have the right to deduct preliminary tax;
3b) goods for which tax payment obligation existed in the preliminary trade phase in accordance with the law governing the property tax;
4) services of renting the apartments, if used for residential purposes;
5) shares, securities, postal securities, revenue and other current stamp duties according to their printed value in the Republic, except for ownership shares specified in the Article 4 of the present Law;
6) postal services provided by a public enterprise, as well as relating to deliveries of goods connected with them;
7) services provided by health-care institutions in conformity with the regulations covering health care, including accommodation, nursing and food of patients in these institutions, except for pharmacies and pharmaceutical institutions,
8) services provided by physicians, stomatologists or other persons in conformity with the regulations covering health care;
9) services and deliveries of dental prothetic appliances within the sphere of dental technician's activity, as well as deliveries of dental prothetic appliances, effected by a stomatologist;
10) human organs, tissues, bodily liquids and cells, blood and mother's milk;
11) services of social welfare and care, children protection and protection of the young people, social protection services, as well as the trade of goods and services directly related to these, provided by persons registered for engaging in these activities;
12) services of accommodation and food for pupils and students in school and student homes or similar institutions, as well as the trade of goods and services directly related to these;
13) educational services (pre-elementary, elementary, secondary, high, and university education) and services of professional retraining, as well as the trade of goods and services directly related to these, provided by persons registered for engaging in these activities, where these activities are effected in conformity with the regulations covering the relevant area;
14) services in the area of culture and directly related trade of goods and services, provided by persons whose activity is not aimed at making profit, and who are registered for engaging in such activity;
15) services in the area of science and the directly related trade of goods and services, provided by persons whose activity is not aimed at making profit, and who are registered for such activity;
16) services of religious character provided by registered churches and religious communities, and the trade of goods and services directly related to these;
17) services of public broadcasting service, except for services of commercial character;
18) services of making arrangements for chance games;
19) services in the area of sports and physical education provided to persons engaged in sports and physical education, provided by persons whose activity is not aimed at making profit, and who are registered for such activity.
If the tax payer, while purchasing goods, could exercise the right to deduct a part of the preliminary tax in accordance with Article 30 of this Law, tax exemption referred to in paragraph 2, item 3a) of this Article shall not apply.
The minister shall regulate in detail what are considered to be goods, or services referred to in paragraph 2, items 3), 7), 11), 12), 13), 14), 15) and 18) of this Article.
Tax Exemptions at Imports of Goods
Article 26
VAT shall not be paid on the imports of goods:
1) whose trade is in conformity with Article 24, paragraph 1, items 5), 10), 11) and 13) through 16c), and Article 25, paragraph 1, items 1) and 2), and paragraph 2, items 5) and 10) of the present Law, which trade is exempted from the VAT;
1a) which are imported on the ground of a donation contract and/or as humanitarian assistance;
1b) which are exported, and are returned to the Republic as unsold or as not complying with the obligations stipulated in the contract and/or business relationship on the ground of which they were exported;
1c) which are carried into duty-free shops under the customs procedure;
1d) on the basis of replacement in the warranty period;
2) which are temporarily imported and exported again, within the framework of customs procedure, as well as placed in the customs procedure of active refining, coupled with the postponement system;
3) which are temporarily exported and imported again in an unchanged condition, under the customs procedure;
4) for which the procedure is permitted of their remodeling under customs control;
5) under the customs procedure, relating to the transit of goods;
6) for which the procedure is permitted, under the customs procedure, of the customs storage;
7) for which, in conformity with Article 216 and Article 217, paragraph 1, item 6 of the Customs Law ("Official Herald of the RS", No. 18/10), the exemption from customs is provided for, except in case of the import of motor vehicles.
Article 27
The preliminary tax shall be the amount of VAT calculated in the preceding phase of the trade of goods and services, and/or paid at the imports of goods, and which may be deducted by the taxpayer from the VAT owed.
Conditions for the Preliminary Tax Deduction
Article 28
The right to the preliminary tax deduction may be effected by a taxpayer if the goods procured in the Republic or from import, including the supply of equipment, as well as structures and for performing an activity and economically divisible entireties within the framework of such structures (hereinafter: structures for performing an activity), and/or the received services, are used or will be used by him for the purpose of trade of goods and services:
1) which is taxable by the VAT;
2) for which, in conformity with Article 24 of the present Law, there exists an exemption from paying the VAT;
3) which is effected abroad, if such trade would have entailed the right to preliminary tax deduction, in the event of its being effected in the Republic.
The right to the preliminary tax deduction may be effected by a taxpayer if he is in possession of:
1) a bill issued by another taxpayer in the trade regarding the amount of the preliminary tax, in conformity with the present Law;
2) a document on importation of goods whereby preliminary tax is indicated and a document which confirms that the indicated VAT has been paid during importation.
The taxpayer may deduct the preliminary tax from the VAT owed, within a tax period in which the requirements specified in paragraphs 1 and 2 of the present Article are fulfilled, relating to:
1) calculated and indicated VAT for the trade of goods and services that has been done - or that will be done - to him by the other taxpayer in the trade;
2) the VAT that has been paid on the occasion of imports of goods.
The right to preliminary tax deduction shall come about on the day of fulfilling the requirements specified in paragraphs 1 through 3 of the present Article.
The right to preliminary tax deduction may be effected also by a tax debtor referred to in Article 10, paragraph 1, items 2) and 3) of the present Law, on condition that he has calculated the VAT on the price for the received goods and services in conformity with the present Law, and that he uses the received goods and services in the trade of goods and services specified in paragraph 1 of the present Article, as well as tax debtor referred to in Article 10, paragraph 2 of this Law, provided that he possesses the bill of the previous participants in trade in accordance with the present Law, that he has, on the basis of advance payment, or consideration for goods and services, calculated VAT in accordance with the present Law, and that he shall use those goods and services for trade of goods and services referred to in paragraph 1 of this Article.
Taxpayer may execute the right to deduction of the preliminary tax within five years from the expiry of the year in which he acquired that right.
Exemption from Preliminary Tax Deduction
Article 29
A taxpayer shall not be entitled to preliminary tax deduction on the ground of:
1) acquisition, production and imports of a passenger vehicles, motorcycles, yachts, boats and aircrafts, facilities to accommodate these goods, spare parts, fuel and operating supplies intended for these, as well as renting, maintenance, repair and other services that are related to the use of these transportation means,
2) taxpayer's entertainment allowance;
3) acquisition or imports of carpets, household electrical appliances, television and radio receivers, fine arts and applied arts works and other decorative objects used for fitting of administrative premises.
4) (deleted)
As an exception to paragraph 1, item 1) of the present Article, the taxpayer shall be entitled to preliminary tax deduction if using the transportation means and other goods exclusively for performing an activity:
1) of trade and renting of mentioned transportation means and other goods;
2) of carriage of persons and goods, or of training of drivers for the operation of the mentioned transportation means.
Division of the Preliminary Tax and the Proportionate Tax Deduction
Article 30
If a taxpayer uses delivered or imported goods for the performing of his activity, or receives services necessary for his activity, in order to effect the trade of goods and services for which there exists the right to preliminary tax deduction as well as for the trade of goods and services for which the right to preliminary tax deduction dose not exist - such taxpayer shall be obliged to divide the preliminary tax according to economic association with the part entitling him to deduction and the part that does not entitle him to deduct from the VAT owed by him.
If the taxpayer is not able to divide the preliminary tax for individual delivered or imported goods or received services, in the mode specified in paragraph 1 of the present Article, and which he uses for his activity in order to effect the trade of goods and services for which there exists the right to preliminary tax deduction, and the trade of goods and services for which the right to preliminary tax deduction does not exist - he may deduct the proportionate part of the preliminary tax that corresponds to the participation of the trade of goods and services with the right to preliminary tax deduction in which the VAT is not included, within the total trade in which the VAT it is not included (hereinafter: proportionate tax deduction).
The proportionate tax deduction shall be determined by applying the percentage of the proportionate tax deduction to the amount of preliminary tax in the tax period, reduced by the amounts that are set apart in the mode specified in paragraph 1 of the present Article, as well as by the amount of preliminary tax that does not entitle the taxpayer to deduction in terms of Article 29, paragraph 1 of the present Law.
The percentage of the proportionate tax deduction for the tax period shall be determined by placing into relationship the trade of goods and services with the right to preliminary tax deduction, in which the VAT is not included, and the total trade that does not include the VAT, effected from 1st January of the current year until the expiry of the taxation period for which a tax return is to be filed.
The trade of goods for determining the percentage of the proportionate tax deduction specified in paragraph 4 of the present Article shall not include the trade of equipment and structures necessary for performing the activity.
In the last tax period and/or last tax period of a calendar year, the VAT taxpayer shall make the correction of the proportionate tax deduction by applying the percentage of the proportionate tax deduction to the amount of preliminary tax from all tax periods in the calendar year.
The minister shall regulate the details of the mode of determination and the correction of the proportionate tax deduction.
Correction of the Preliminary Tax Deduction at the Change of the Base
Article 31
Should there be a change in the base of taxable trade of goods and services, a taxpayer who is a receiving party of the trade of goods and services, shall be obliged to correct, in accordance with such change, the deduction of the preliminary tax realised by him on that ground.
The correction of the preliminary tax deduction specified in paragraph 1 of the present Article shall refer also to a recipient of goods and services specified in Article 10, paragraph 1, items 2) and 3) and paragraph 2 of the present Law.
The correction of the preliminary tax reduction specified in paragraph 1 of the present Article shall be done also on the ground of a certified transcription of the minutes on court settlement of creditors, in conformity with Article 21, paragraphs 3 and 5 of the present Law.
The correction of the preliminary tax deduction shall be effected within the tax period in which the base has been modified.
Correction of Preliminary Tax Deduction Based on a Decision of the Tax or Customs Authority
Article 31a
If a tax authority in the control procedure issues a decision finding a liability originating from VAT for executed trade of goods and services, VAT taxpayer who received these goods and services may correct the deduction of the preliminary tax if he has paid the amount of VAT calculated by the tax authority, to a VAT taxpayer which has supplied him with goods and services.
If the decision from paragraph 1 this article is annulled, amended or repealed in the section that defines a liability originating from VAT, VAT taxpayer who has executed trade of goods and services shall inform in writing the recipient of goods and services.
On the basis of the written notice from paragraph 2 of this Article, the recipient of goods and services is required to correct the deduction of the preliminary tax.
If VAT on imported goods, which was deducted as preliminary tax, increased, decreased, refunded, or the taxpayer was exempt from paying, the taxpayer shall, on the basis of a customs document or decision of a customs authority, correct the deduction of the preliminary tax in accordance with that alteration.
Correction of preliminary tax deduction is be made in the tax period wherein the alteration occurred.
Correction of Preliminary Tax Deduction for Equipment and Facilities Used in Performing an Activity
Article 32
A taxpayer who has exercised the right to deduct preliminary tax on the basis of acquisition of equipment and facilities for carrying out a business activity, as well as investments in facilities belonging to him or to others, except for investments related to routine maintenance of facilities (hereinafter referred to as: investment in facilities), is required to correct the preliminary tax deduction if he ceases to fulfill the conditions for the exercise of this right, within the time period shorter than five years since the first use of equipment, ten years since the first use of facilities, or ten years since the completion of investments in facilities.
The correction of the preliminary tax reduction shall be made for the period that is equal to the difference between the time limits specified in paragraph 1 of the present Article, and the period in which the taxpayer has been meeting the requirements for the realisation of the right to preliminary tax reduction.
As an exception to paragraph 1 of the present Article, the taxpayer shall not make the correction of preliminary tax deduction in the case of the trade of equipment intended for performing the activity, or facilities intended for carrying out activities that are subject to VAT, investments in facilities for which he charges a fee, and in the case of the trade of property or part of the property referred to in the Article 6, paragraph 1, item 1) of the present Law.
In the event of the transfer specified in Article 6, paragraph 1, item 1) of the present Law, the time limits referred to in paragraph 1 of the present Article shall continue to run.
The transferor of property specified in paragraph 4 of the present Article shall be obliged to submit to the acquirer the data necessary for carrying out the correction specified in paragraph 1 of the present Article.
The acquirer of property specified in paragraph 4 of the present Article shall make the correction of preliminary tax deduction made by the transferor of property for equipment and installations after ceasing to meet the requirements for the realisation of the right to preliminary tax deduction.
The minister shall regulate the details of defining the equipment and installations intended for the performing of an activity and investments in facilities in terms of the present Law, as well as the mode of carrying out the correction of the preliminary tax deduction.
Subsequent Exercising of Right to Preliminary Tax Deduction for Equipment and Facilities Used in Performing an Activity
Article 32a
VAT taxpayer who was not entitled to preliminary tax deduction on the basis of acquisition of equipment and facilities intended for carrying out activity, and investments in facilities, may exercise the right to deduct preliminary tax if he meets the requirements for achieving the right to deduct preliminary tax within the time limits referred to in Article 32 Paragraph 1 of this Law.
Taxpayer from the paragraph 1 this Article may exercise the right to deduct a part of preliminary tax proportionate to the period that is equal to the difference between the time limits referred to in paragraph 1 of this Article and the period in which the taxpayer did not meet the requirements for eligibility for deduction of preliminary tax.
The acquirer of assets referred to in Article 6 Paragraph 1 item 1) of this Law may exercise the right to deduct part of the preliminary tax for equipment and facilities intended for performance of activities. or for investments in facilities, pursuant to which the transferor of assets was not entitled to the preliminary tax deduction, if he meets the requirements for the exercise of this right within time limits referred to in paragraph 1 of this Article, and if the transferor of property delivers him necessary data for execution of the right to deduct preliminary tax.
In the event of transfer referred to in Article 6 Paragraph 1, item 1) of this Law, time limits specified in paragraph 1 of this Article shall not be interrupted.
If a VAT taxpayer who has exercised the right to deduct part of the preliminary tax in accordance with paragraph 1 of this article ceases to meet the requirements for eligibility for deduction of the preliminary tax before the end of the prescribed time limits, he is required to correct the deduction of preliminary tax in accordance with Article 32 this Law in proportion to the period wherein he is not eligible for deduction of preliminary tax..
The Minister shall specify the method of determining the part of the preliminary tax referred to in paragraph 2 of this Article.
Entitlement to preliminary tax deduction while filing for the payment of VAT
Article 32b
A person who is registered for VAT payment obligation in accordance with this Law shall be entitled to deduct preliminary tax on goods he owns on the day preceding the commencement of VAT activities, which were purchased in the 12 months prior to the commencement of VAT activities, under the following conditions:
1) that he made an inventory of goods and submitted the inventory list to the tax authority while submitting the VAT return (hereinafter: registration form);
2) that he possesses a bill issued to him by the previous participant in trade, a VAT taxpayer, wherein the calculated VAT for goods is indicated, or a customs document confirming completed import of goods and the amount of VAT charged for the importation of such goods;
3) that he paid the bill to the supplier of goods, a VAT taxpayer, or that the VAT had been paid during importation.
It is considered that the VAT activity specified in paragraph 1 of this Article, in terms of this Law, starts on the day that follows the commencement of obligation to register for VAT payment obligation, or on the day of option for VAT payment obligation.
VAT taxpayer is entitled to the right to deduct preliminary tax on goods, specified in paragraph 1 of this Article, in a tax period wherein he performed the trade entitled to preliminary tax deduction of those goods, or goods produced or manufactured from those goods.
Goods under paragraph 1 this Article are not considered to be goods deemed to be equipment and facilities for carrying out activities in accordance with this Law.
Inventory list referred to in paragraph 1 item 1) of this Article shall especially include information on the type, amount and date of purchase of goods, purchase price of goods without VAT and the amount of charged VAT.
VIII PARTICULAR TAXATION PROCEDURE
Article 33
Small taxpayer, under this Law, means a person who conducts trade of goods or services in the territory of the Republic and/or abroad, and whose total turnover of goods and services in the previous 12 months is not higher than 8,000,000.00 dinars, or a person who, while starting its business, estimates that over the next 12 months it will not achieve a total turnover which is higher than 8,000,000.00 dinars.
Small taxpayer shall not charge VAT for performed trade of goods and services, shall not have the right to indicate the VAT in bills, shall not be entitled to deduct preliminary tax, and shall not be required to keep records prescribed by this Law.
Small taxpayer may opt for VAT payment obligation by submitting a registration form prescribed in accordance with this law to the competent tax authority and in this case earns the rights and obligations referred to in paragraph 2 of this Article, as well as other rights and obligations which the VAT taxpayer has under this Law.
In case referred to in paragraph 3 this Article, the VAT liability lasts for at least two years.
At the expiry of the time period specified in paragraph 4 of this Article, a taxpayer may file a request to the competent tax authority to terminate the obligation of VAT payment.
Total turnover under paragraph 1 of this article is considered to be the trade of goods and services referred to in Article 28, paragraph, 1 item 1) and 2) of this Law, save the transport of equipment and facilities intended for performance of an activity (hereinafter referred to as: total turnover).
Article 34
Individuals who are owners, tenants and other users of agricultural and forest land and individuals who are, as heads, or members of the agricultural household, inscribed in the register of agricultural households in accordance with a regulation that governs the registration of agricultural households (hereinafter referred to as: farmers), are entitled to reimbursement on the basis of VAT (hereinafter: VAT reimbursement), under the conditions and in the manner prescribed by this Law.
The VAT reimbursement shall be granted to farmers who effect the trade of agricultural and forest products, and/or agricultural services to taxpayers.
If the farmers effect the trade of goods and services specified in paragraph 2 of the present Article, the taxpayer shall be obliged to calculate the VAT reimbursement at the amount of 8% of the value of the received goods and services, which shall be acknowledged by an accounting document (hereinafter: receipt), and to pay the farmers the calculated VAT reimbursement in money (by making payment to the current account or savings account).
The taxpayer referred to in paragraph 3 of the present Article shall have the right to deduct the amount of the VAT reimbursement as a preliminary tax, on condition that they have paid to the farmer the VAT reimbursement and for the value of the received goods and services.
Farmer whose total turnover of goods and services in the previous 12 months is not higher than 8,000,000.00 dinars shall not charge VAT for the performed trade of goods and services, shall not have the right to indicate VAT in bills, shall not be entitled to deduct preliminary tax, and shall not be required to keep records required by this law.
Farmer may opt for VAT payment obligation of by submitting a registration form prescribed in accordance with this Law to the competent tax authority and in that case he gains the rights and obligations under paragraph 5 of this article, as well as other rights and obligations which the VAT taxpayer has under this Law.
In the case referred to in paragraph 6 of this Article, VAT payment obligation lasts for at least two years.
After the period referred to in paragraph 7 of this Article, taxpayer may file a request for termination of the VAT payment obligation to the competent tax authority.
Article 35
A tourist agency, in terms of the present Law, shall be understood to mean a taxpayer providing to passengers tourist services, and in relation to them acting in its own name, while receiving from them for the travel organisation goods and services of other taxpayers that are used directly by passengers (hereinafter: preliminary tourist services).
Tourist services provided by a tourist agency shall be considered in terms of the present Law as a single service.
The place of effecting of a single tourist service shall be determined in accordance with Article 12, paragraphs 1 and 2 of the present Law.
The base of the single tourist service provided by a tourist agency shall be the amount representing the difference between total price paid by a passenger, and actual expenses paid by the tourist agency for preliminary tourist services, after deducting the VAT that is included in that difference.
In the cases specified in Article 5, paragraph 4 of the present Law, the total price in terms of paragraph 4 of the present Article shall be the value referred to in Article 18 of the present Law.
A tourist agency may determine the base in accordance with paragraphs 4 and 5 of the present Article for the groups of tourist services or for all tourist services provided within the tax period.
A tourist agency may not indicate the VAT for tourist services, specified in paragraph 1 of the present Article, in the bills or other documents, and shall have no right to preliminary tax deduction on the ground of preceding tourist services that have been indicated to it in the bill.
Used Goods, Fine Arts Works, Collector's Goods and Antiques
Article 36
Taxpayers engaged in the trade of used goods, including second-hand motor vehicles, fine arts works, collector's goods and antiques, shall determine the basis as a difference between the sale and the buying price of the goods (hereinafter: taxing the difference), by deducting the VAT that is included in that difference.
The tax base referred to in paragraph 1 of the present Article shall be applied where at the acquisition of goods their deliverer did not owe the VAT, or has used the taxation of the difference specified in paragraph 1 of the present Article.
In the cases specified in Article 4, paragraph 4 of the present Law, the sale price for calculating the difference shall be the value referred to in Article 18 of the present Law.
At the trade of goods referred to in paragraph 1 of the present Article, the taxpayer may not indicate the VAT in the bills or other documents.
Taxpayer is not entitled to preliminary tax deduction on goods and services that are directly related to the goods referred to in paragraph 1 of this Article.
Secondary raw materials referred to in Article 10, paragraph 2, item 1) of this Law are not considered to be used goods referred to in paragraph 1 of this Article.
The minister shall regulate what shall be considered as used goods, fine arts work, collector's goods and the antique specified in paragraph 1 of the present Article.
Tax obligation after recovered claim
Article 36a
VAT taxpayer whose total turnover of goods and services in the previous 12 months was no more than 50,000,000.00 dinars and which at that time period was continuously recorded for the obligation to pay VAT may apply to the competent tax authority for approval to pay of tax obligation after recovered claim for completed trade of goods and services (hereinafter referred to as: recovery system), under the following conditions:
1) that in the previous 12 months he filed VAT tax returns within the prescribed period;
2) that in the previous 12 months the requirements for charging VAT under recovery system have not ceased to exist, or that the taxpayer has not ceased to use the recovery system at his own request.
Application under paragraph 1 of this Article shall be submitted to the competent tax authority which checks compliance with requirements for recovery system and issues a certificate of approval to the recovery system.
VAT taxpayer shall apply the recovery from the first day of the tax period following the tax period in which he received the certificate referred to in paragraph 2 this Article.
VAT taxpayer to whom the competent tax authority has approved the application of the recovery system:
1) charges VAT for performed trade of goods and services, issues a bill in accordance with this Law wherein he indicates the calculated VAT and states that for this trade of goods and services recovery system shall apply;
2) pays the tax obligation, referred to in item 1) of this paragraph, for the tax period wherein he recovered his claim, or part of the claim for performed trade of goods and services, in part of recovered claim;
3) is entitled to a preliminary tax deduction in accordance with Article 28, paragraph 1, 2 and 4 of this Law, provided that he paid the obligation for trade of goods and services to the previous participant in trade, in part of paid obligation, or that VAT was paid during importation of goods.
Notwithstanding paragraph 4 of this Article, the recovery system does not apply in following cases of:
1) trade of goods under Article 4, paragraph 3, item 7) and 7a) of this Law;
2) transfer of all or part of the property, except for transfer under Article 6, paragraph 1, item 1) of this Law;
3) trade of goods and services for which the VAT taxpayer is the tax debtor referred to in Article 10, paragraph 1, item 2) and 3), and paragraph 2 this Law;
4) trade of goods and services in accordance with Article 35 and 36 this Law;
5) trade of goods and services that is conducted through affiliates in accordance with the law governing corporate income tax.
If the VAT taxpayer does not recover the claim for trade of goods and services within six months from the date of the completed trade, he is due to pay the tax obligation arising from this trade for the tax period in which the time period of six months has expired.
Recovery system ceases on the first day of the tax period following the tax period in which:
1) tax payer submitted a statement to the competent tax authority on termination of recovery system;
2) circumstances arose due to which the tax payer would not be approved for the recovery system by the competent tax authority when applying for approval for this system.
Competent tax authority shall issue a certificate of termination of the recovery system referred to in paragraph 7 of this Article.
Notwithstanding paragraph 7 of this Article, recovery system shall also cease in the event of the submitted request for strike out from the VAT records effective on the date of termination of VAT activities.
At the termination of the recovery system, the VAT taxpayer shall also, for the last tax period, or the period in which the VAT activity ended, and in which he applied the recovery system, pay the tax obligation for trade of goods and services for which he has not recovered his claim and is entitled to deduct VAT, charged by the previous participant in trade to whom he has not paid the obligation for trade of goods and services, as preliminary tax in accordance with this Law.
The Minister shall specify what constitutes recovery of claims under paragraph 1 of this Article.
IX DUTIES OF TAXPAYERS AT THE TRADE OF GOODS AND SERVICES
Article 37
A taxpayer shall be obliged to:
1) submit a record keeping application;
2) issue a bill relating to the effected trade of goods and services;
3) keep records in conformity with the present Law;
4) calculate and pay the VAT and submit the tax returns;
5) supply information to the tax authority in accordance with this Law.
Keeping Records and Striking out of VAT Taxpayers
Article 38
A taxpayer who has realised in the preceding 12 months the total trade exceeding 8,000,000 dinars, shall be obliged to submit a record keeping application to the responsible tax authority until the expiration of the first tax period for submitting the periodical tax return, at the latest.
A record keeping application shall also be submitted by a small taxpayer, or farmer, who opted for VAT payment obligation, within a time period specified in paragraph 1 of the present Article.
The responsible tax authority shall issue to the taxpayer a certificate on effected record keeping relating to the VAT.
The taxpayer shall be obliged to indicate the tax identification number (hereinafter: TIN) in all the documents, in conformity with the present Law.
Article 38a
At the request for termination of VAT payment obligation submitted by a taxpayer who in the previous 12 months has not achieved a total turnover higher than 8,000,000 dinars, including the taxpayer referred to in Article 33, paragraph 5 and Article 34, paragraph 8 of this Law, the competent tax authority conducts proceedings and issues a certificate of striking out from VAT records.
Prior to striking out from the register of companies, or any other register in accordance with law (hereinafter referred to as: the register) at the authority responsible for maintaining the register, a VAT taxpayer who ceases to conduct business shall, not later than 15 days before filing for striking out from the register, submit to the competent tax authority a request for striking out from VAT records.
Request for striking out from VAT records under paragraphs 1 and 2 of this Article shall contain data on the date of termination of the VAT activities.
Competent tax authority conducts proceedings and issues a certificate of strike out from the VAT records.
Authority responsible for maintaining the register may not execute strike out of the taxpayer from the register without a certificate referred to in paragraph 4 of this article.
Certificate under Article 38, paragraph 3 and paragraph 4 of this article contains the following information:
1) company name, or the first and last name, and address of the taxpayer;
2) date of issuance of the certificate of VAT registration and strike out from VAT records;
3) tax identification number;
4) date of commencement of VAT activities and VAT registration, and date of strike out from the VAT records.
Competent tax authority shall maintain records of all tax payers who have been issued certificates under paragraph 5 of this article.
Article 39
(Deletetd)
Article 40
A taxpayer who has filed an application for strike out from the VAT records is due to do the following, on the day of cessation of VAT tax activities:
1) to conduct an inventory of assets, including equipment, facilities for provision of services and investments in facilities, as well as given advance payments, pursuant to which he was entitled to a deduction of preliminary tax in accordance with this Law and to draft an inventory list thereon;
2) to make a correction in the preliminary tax deduction for equipment, facilities, and investments in facilities in accordance with this Law;
3) to determine the amount of preliminary tax for given advance payments and goods, except for goods referred to in item 2) of this paragraph.
The amount of corrected preliminary tax deduction and the tax amount of preliminary tax specified in paragraph 1, item 2) and 3) of this Article taxpayer shall indicate as owed in his tax return, in accordance with this Law.
Taxpayer shall file the Inventory list referred to in paragraph 1, item 1) of this Article, alongside his tax return referred to in paragraph 2 of this Article.
Article 41
The minister shall prescribe the form of the record keeping application and the procedure of filing of taxpayers and their striking out from the VAT taxpayers’ records, as well as the content of the inventory list referred to in Article 40, paragraph 3 of this Law.
Article 42
A taxpayer shall issue a bill for each trade of goods and services.
In case of provision of time-limited or unlimited services whose duration is longer than one year, a periodic bill shall be issued, provided that the period for which the bill shall issued shall not be longer than one year.
The duty of issuing the bill specified in paragraph 1 and 2 of the present Article shall apply also should the taxpayer collect the price or a part of the price prior to effecting the trade of goods and services (advance payment), provided that the advance payments be deducted in the final bill that includes the VAT.
A bill shall particularly include the following data:
1) name, address and the VAT taxpayer - of the bill issuer;
2) place and date of issuing the bill and its ordinal number;
3) name, address and the VAT taxpayer - recipient of the bill;
4) kind and quantity of delivered goods or kind and size of services;
5) date of the trade of goods and services, and the amounts of advance payments;
6) base amount;
7) applicable tax base;
8) amount of VAT calculated on the base;
9) note on provision of the present Law under which VAT was not charged.
10) note that recovery system is applied for trade of goods and services.
A bill shall be issued in minimum of two copies, out of which one shall be kept by the issuer of the bill, and the remaining ones shall be given to the recipient of goods and services.
VAT taxpayer shall not issue a bill for trade of goods and services for which an obligation to pay VAT was established by a decision of a tax authority.
Article 43
The bill referred to in Article 42, paragraph 1 of the present Law shall also be a document of calculation issued by a taxpayer as a recipient of goods and services, by which the price is calculated of the goods and services, if:
1) a taxpayer - recipient of goods and services, is entitled to indicate the VAT in the bill;
2) there is an agreement between a taxpayer issuing the calculation document and a taxpayer receiving it, that the calculation of the trade of goods and services be effected by the recipient of goods and services;
3) a calculation document is delivered to a taxpayer who has delivered the goods and services;
4) a taxpayer who has delivered the goods and services has agreed, in writing, with the indicated VAT.
Article 44
A taxpayer who indicates in a bill for delivered goods and services a VAT that exceeds the one that is in conformity with the present Law, shall be obliged to pay the VAT as indicated, until making the correction of the VAT amount in a new bill.
Correction of VAT referred to in paragraph 1 of this Article shall be made in the tax period in which the bill was issued with the corrected amount of VAT.
A person who indicates VAT in a bill, and is not a VAT taxpayer or has not performed trade of goods or services, owes the indicated VAT.
Article 45
The minister shall regulate in details in which cases there shall be no duty of issuing a bill, or no possibility of omitting certain data in the bill, and/or in which cases it may be possible to introduce additional simplifications related to invoicing.
Article 46
A taxpayer shall be obliged, for the purpose of regular calculation and payment of the VAT, to keep records ensuring the control.
The minister shall regulate the details of form, content and mode of record keeping.
Article 47
Taxpayer is required to keep records, referred to in Article 46 of this Law, and documents on the basis of which he keeps these records until the expiry of a limitation period for assessment and collection of VAT, or at least ten years after the expiry of the calendar year from the moment of first use of facilities and the completion of investments in facilities under Article 32 this Law.
Tax Period, Tax Return Filing, Calculation and Payment of the VAT
Article 48
Tax period in which VAT shall be calculated, tax return filed and VAT paid, shall be the calendar month regarding a taxpayer who has effected, within 12 preceding months, a total trade exceeding 50,000,000 dinars, or who estimates that he is going to effect in the subsequent 12 months a total trade exceeding 50,000,000 dinars, as well regarding the taxpayer under Article 36a of this Law.
The tax period in which VAT has to be calculated, tax return filed and VAT paid, shall be a calendar quarter for a taxpayer who has effected, in the preceding 12 months, a total trade of less than 50,000,000 dinars, or who estimates that he is going to effect in the subsequent 12 months a total trade of less than 50,000,000 dinars, except regarding the taxpayer under Article 36a of this Law.
For the taxpayer specified in paragraph 2 of the present Article who in the calendar quarter realizes the total trade exceeding 50,000,000 dinars, the tax period shall be the calendar month starting with the month upon expiration of a calendar quarter.
The taxpayer specified in paragraph 2 of the present Article may submit to the responsible tax authority a request for changing a period in the calendar month, until 15 January of the current calendar year, at the latest.
The approved tax period specified in paragraph 4 of the present Article shall continue for at least 12 months.
For taxpayers who begin for the first time the VAT activity in the current calendar year, regardless of the date of registration for carrying out business activities concerning a taxpayer that registers to conduct business activities, for the current and next calendar year tax period is a calendar month.
For a tax debtor who is not a VAT taxpayer, the tax period is a calendar month.
Article 49
A taxpayer shall be obliged to calculate the VAT for the corresponding tax period on the ground of trade of goods and services within that period, if these involve, in conformity with the present Law, a tax duty, and provided that the taxpayer is at the same time a tax debtor.
In calculating the VAT, corrections specified in Article 21 and Article 44, paragraph 1 of the present Law, shall also be included.
The VAT calculated in conformity with paragraphs 1 and 2 of the present Article, shall be reduced by the amount of preliminary tax, in accordance with Articles 28, 30, 34, and 36a of the present Law.
The calculation of the amount of preliminary tax specified in paragraph 3 of the present Article, shall also include the corrections referred to in Articles 31, 31a, 32, 32a, 32b and 40 of the present Law.
The imports VAT shall be deducted from the VAT in the tax period in which it has been paid.
Tax debtor who is not a VAT taxpayer shall calculate VAT for the trade goods and services for the tax period in which the tax obligation has originated in accordance with this Law.
As an exception to the provision of paragraph 1 of the present Article, in the event of transport of passengers by buses, effected as a transborder traffic by foreign taxpayers, the responsible tax authority shall calculate the VAT for every single carriage (hereinafter: singular taxation of carriage), under the condition of reciprocity.
Article 50
A taxpayer to whom the tax period is a calendar month shall file a tax return with the responsible tax authority by using the prescribed form, within a 15 day time limit after the expiration of the tax period.
A taxpayer to whom the tax period is a calendar quarter shall file a tax return to the competent tax authority in the prescribed form, within 20 days after the expiry of the tax period.
A taxpayer shall file the tax return regardless of whether he has the duty of payment of VAT within the tax period.
Tax return shall also be filed by tax debtors who are not VAT taxpayers within ten days after the expiry of the tax period in which the tax obligation has originated.
Notwithstanding paragraphs 1 and 2 of this Article, VAT taxpayer who is being struck out from the VAT records shall file a tax return to the competent authority on the day when the request for strike out has been submitted.
Tax return under paragraph 5 this Article shall be filed for the period from the day of beginning of the tax period wherein the request for strike out was submitted until the day of cessation of VAT activities.
Article 51
A taxpayer shall be obliged to pay the VAT for each tax period, that is equal to positive difference between the total amount of tax duty and the amount of the preceding tax, within the time limit applicable to tax return filing.
Notwithstanding paragraph 1 of this Article, VAT is paid:
1) within 15 days of filing the tax return for the VAT taxpayer referred to in Article 38a, paragraph 1 of this Law;
2) until the day when the request for strike out from the register of taxpayers is submitted for the taxpayer referred to in Article 38a, paragraph 2 this Law.
The tax debtors who are not VAT taxpayers are required to pay VAT in the period prescribed for filing of the tax return.
Article 51a
Taxpayer is required to notify in writing the competent tax authority on change of data from the registration form which are relevant for the calculation and payment of VAT, the latest in the period of five days from the day the change happened.
Enclosed with the tax return, a taxpayer is required to submit to the tax authority information about:
1) a person who is not registered for VAT payment obligation in accordance with this Law, who has, in the previous 12 months in the Republic, supplied him secondary raw materials and services that are directly associated to those materials, with a turnover of more than 1,000,000 dinars;
2) a farmer who is not registered for VAT payment obligation in accordance with this Law, who has, in the previous 12 months, supplied him agricultural and forest products and agricultural services, with a turnover of more than 1,000,000 dinars.
Information under paragraph 2 of this Article shall at least contain information on the business name, or first and last name, as well as address and tax ID number of the person referred to in paragraph 2, item 1), and paragraph 2, item 2) of this Article.
Taxpayer shall deliver Information referred to in paragraph 2 this Article alongside a tax return for a tax period in which the person referred to in paragraph 2, item 1), or with the farmer referred to in paragraph 2, item 2) of this Article, supplied him with a turnover of more than 1,000,000 dinars.
X RETRIEVAL, REIMBURSEMENT AND REFUNDING OF TAX
Article 52
Should the amount of a preceding tax exceed the amount of tax duty, the taxpayer shall be entitled to refund of the difference.
Should the taxpayer fail to decide on the refund referred to in paragraph 1 of the present Article, the difference shall be granted as a tax credit.
A taxpayer may demand the refund of an unused amount of tax credit specified in paragraph 2 of the present Article by filing a request, at the earliest by the expiry of the time limit for filing a tax return for the current tax period.
The refund specified in paragraph 1 and 3 of the present Article shall be effected within 45 day time limit, at the latest, and/or within 15 days in the case of taxpayers who are engaged predominantly in the trade of goods intended for abroad, after the expiry of the time limit for filing a tax return, and/or from the day of filing the request specified in paragraph 3 of the present Article.
The Government of the Republic of Serbia shall prescribe the criteria to serve as a ground for determining what shall be deemed, in terms of the present Law, a predominant trade of goods intended for abroad.
The minister shall regulate the details of the procedure of realisation of the right to VAT refund, as well as the procedure and conditions for the VAT refund instead of the tax credit.
Reimbursement of VAT to a Foreign Taxpayer
Article 53
VAT reimbursement shall be made to a foreign taxpayer, at his request, for the trade of movable goods and rendered services in the Republic, provided that:
1) VAT for trade of goods and services is indicated in the bill, in accordance with the present Law, and that the bill was paid;
2) the amount of VAT for which a VAT reimbursement application is submitted equals more than 200 Euros in dinars equivalent at the middle exchange rate of the National Bank of Serbia;
3) the conditions under which the VAT taxpayer may be entitled to a preliminary tax deduction for these goods and services are fulfilled in accordance with this Law;
4) he only renders services of transportation of goods which are exempt from taxation in accordance with Article 24, paragraph 1, item 1), 5) and 8) of this Law, or only renders transportation of passengers which is subject to individual taxation of transportation in accordance with Article 49, paragraph 7 of this Law, and does not perform other trade in the Republic.
VAT reimbursement in cases specified in paragraph 1 of this Article shall be subject to reciprocity.
Article 54
The right to reimbursement, on the ground of a submitted request, shall pertain to organisations registered for humanitarian activity, for the goods that are delivered to them in the Republic, on condition that:
1) the trade of goods is subject to taxation;
2) the VAT for the delivered goods is indicated in the bill, in conformity with Article 42 of the present Law, as well as that the bill has been paid;
3) the acquired goods are forwarded abroad, where they are used in humanitarian, charitable or educational purposes.
Traditional Churches and Religious Communities
Article 55
The right to reimbursement of VAT, on the ground of a filed request, shall pertain to the traditional churches and religious communities - Serbian Orthodox Church, Islamic Community, Catholic Church, Jewish Community, Reformatory Christian Church and Evangelical Christian Church a.v. (hereinafter: traditional churches and religious communities), for the goods delivered to them in the Republic or imported by them, and that are directly connected with religious activity, on condition that:
1) the trade of goods and services, and/or import of goods are taxable;
2) the VAT on the goods delivered goods, and/or services rendered is indicated in the bill, in conformity with Article 42 of the present Law, as well as that the bill has been paid by a person who has the right to reimbursement of VAT in accordance with this Article, and/or that the owed VAT on the ground of imports has been previously paid.
Reimbursement of VAT to Diplomatic and Consular Representation Offices and International Organizations
Article 55a
Should a diplomatic and/or consular representation office or an international organization, and/or a person specified in Article 24, paragraph 1, item 16) of the present Law fail to decide on effecting the acquisition or import of goods, and/or accept services intended for their official and/or personal needs, with tax exemption, shall be entitled to the reimbursement of VAT.
The right to reimbursement of the VAT on the ground of a filed request, and under the conditions prescribed by the present Law for the realization of the tax exemption, may be realised by the persons specified in paragraph 1 of the present Article if:
1) the deliveries or import of goods, and/or services supplied are VAT taxable;
2) VAT for the trade of goods and services is indicated in the bill, in conformity with the present Law, and if the bill has been paid, and/or if the VAT that is owed on the ground of import has been paid;
3) the total value of the goods and services, indicated in the bill, and/or the value of goods, indicated in the customs document, exceeds 50 EUR, excluding the VAT, except for the acquisition of fuel for motor vehicles.
Reimbursement of VAT to a Foreign Citizen
Article 56
At the request of a foreign citizen who is not a taxpayer and has no residence in the Republic, the reimbursement of VAT shall be effected under the conditions specified in Article 24, paragraph 1, item 4) of the present Law.
Refunding of VAT to the purchaser of the first apartment
Article 56a
The individuals right to refunding of VAT for purchasing the first apartment, based on the submitted request, - who is of legal age and citizen of the Republic, with a residence in the territory of the Republic, who purchases his first apartment (hereinafter purchaser of the first apartment).
Purchaser of the first apartment can realize refunding of VAT from the first paragraph of this Article, under the following conditions:
1) that from the 1st of July 2006 until the day of verification of the purchase/sale agreement upon which he acquires his first apartment, he did not have in his ownership and/or co-ownership the apartment on the territory of the Republic;
2) that the agreed price of the apartment with the VAT is completely paid to the current account of the seller.
Notwithstanding paragraph 2, item 2) of the present Article, for the purchase of the apartment under non-profit conditions by a entity of a local government or a non-profit housing organization established by a local governments for the implementation of the activities arranged by regulations in the field of social housing, tax refund referred to in paragraph 1 of this Article can be achieved under condition that amount of the purchase price for the apartment with VAT paid on the current account of the seller is not less than the amount of VAT calculated for the first transfer of the right to disposal on the apartment.
The right to refunding of VAT from the paragraph 1 of this Article can be realized for the apartment of the size not exceeding 40m 2, for the purchaser of the first apartment, and for each member of his family household, who did not have in their ownership and/or co-ownership apartment on the territory of the Republic, not exceeding 15 m 2, in the period stated in the paragraph 2., item 1) of this Article, and for ownership share in the apartment up to the surface proportionate to the share of ownership in relation to the surface of up to 40 m2, or 15 m2.
If the purchaser of the first apartment purchases the apartment of a size greater than that for which he has the right to refund the VAT according to the paragraph 4 of this Article, he can realize his right up to the sum which responds to the size of the apartment from the paragraph 4 of this Article.
Family household of the purchaser of the first apartment is considered to be, in terms of the paragraph 4 of this Article, the joint living, earning and spending the income of the purchaser of the first apartment , his spouse, purchaser's children, purchaser's adopted children, his spouse's children, his spouse's adopted children, purchaser's parents, his adopters, his spouse's parents, his spouse's adopters, with the same residence as the purchaser of the first apartment.
The right to refunding of VAT from the paragraph 1. of this Article does not have:
1) the purchaser of the apartments who has realized his right to refunding of VAT based on the purchasing of the first apartment;
2) the member of the family household for whom the purchaser of the first apartment has realized refunding of VAT, in the case when that member of the family household purchases the apartment;
3) the purchaser of the apartment who has acquired the first apartment without the seller's obligation to pay, for trading that apartment, the tax for the transfer of the absolute rights, based on the purchasing of the first apartment in accordance with the law which regulates tax on property;
4) the member of the family household of the purchaser of the first apartment who has acquired the first apartment without the seller's obligation to pay, for trading of that apartments, the tax for the transfer of the absolute rights, based on the purchasing of the first apartment in accordance with the law which regulates tax on property, and for whom that tax exemption has been realized.
The authorized tax body, following the executed procedure of control of the fulfillment of the conditions for the exercise of the right to a refund of VAT, which must be met on the day of court certification of a contract on sale and purchase of an apartment, except the conditions specified in paragraph 2, item 2), or paragraph 3 of this Article that must be met on the day of application for refund of VAT, decides on the VAT refunding for the purchaser of the first apartment.
The authorized tax body keeps the record of the purchasers of the first apartment and the members of the family households of the purchasers of the first apartment for whom the purchasers of the first apartment have realized refunding of VAT, as well as of the sum of the realized refunding of VAT.
VAT Refund for the purchase of food and equipment for babies
Article 56b
A parent, or a guardian of a baby, adult citizen of the Republic, with a domicile in the territory of the Republic, who buys food and baby equipment (hereinafter referred to as: the buyer of food and equipment for babies) is entitled to a refund of VAT for the purchase of food and equipment for babies subject to submitted application.
Buyer of food and baby products may achieve the VAT refund referred to in paragraph 1 of this Article, provided that:
1) the total net income of parents or guardians of the baby in the year preceding the year in which the application is made under paragraph 1 of this article was less than 981,120 dinars and that the total assets of parents or guardians of the baby that are subject to property taxes, in accordance with the regulations governing the property tax, is less than 23,914,800 dinars;
2) he possesses a fiscal receipt issued by the seller in accordance with the regulations governing the fiscal cash registers.
Right to VAT refund under paragraph 1 of this article may be exercised up to the amount of 71,540 dinars for a baby up to two years of age, more precisely up to 40,880 dinars in the baby’s first year, and up to 30,660 dinars in the second.
Dinar amounts specified in paragraph 2, item 1), and paragraph 3 of this article are adjusted with yearly consumer price index in the calendar year that proceeds the year in which the adjustment is made, according to data of the republic’s authority responsible for statistics.
In harmonization of dinars amounts in accordance with paragraph 4 of this Article, bases for harmonization are last published harmonized amounts.
The Government of Republic of Serbia shall be authorized to publish harmonized amounts from paragraph 4 of this Article.
Food and baby products under paragraph 1 of the present Article include:
1) milk for infants;
2) porridges;
3) baby beds;
4) strollers;
5) high chair;
6) car seats;
7) diapers.
Competent tax authority, after the completion of the process of control of fulfillment of conditions for exercise of right to a VAT refund, which conditions must be fulfilled on the day of application for VAT refund, issues a decision on refunding VAT to the buyer of food and baby products.
Competent tax authority shall maintain records on refunding of VAT for the purchase of food and baby products, and on the amount of achieved VAT refunds.
Article 57
The mode and the procedure of reimbursement and refunding of tax referred to in Articles 53 through 56b of the present Law, as well as what shall be considered as goods and services directly connected with religious activity in terms of Article 55 of the present, Law shall be regulated in details by the minister.
XI SPECIAL REGULATIONS FOR THE IMPORTS OF GOODS
Article 58
Unless otherwise specified by the present Law, the VAT applicable at the imports of goods shall be subject to customs regulations.
Article 59
Unless otherwise specified by the present Law, responsible for the calculation and the collection of VAT at the imports of goods, shall be the customs authority conducting the customs procedure.
Article 60
A fine of 100,000 to 1,000,000 shall be imposed on the taxpayer-legal entity committing misdemeanor, if it:
1) fails to comply with obligations stipulated by the present Law (Article 10, paragraph 2);
2) does not correct the amount of VAT that it owns or does not calculate VAT in the event of changed tax base (Article 21);
3) deducts VAT as preliminary tax without meeting the requirements (Article 28, Article 32b and Article 36a, paragraph 4, item 3);
4) deducts VAT as preliminary tax without being entitled (Article 29, paragraph 1);
5) does not correct the deduction of preliminary tax (Article 31 and Article 31a);
6) fails to notify in writing the recipient of goods and services on annulment, amendment or repeal decision (Article 31a, paragraph 2);
7) fails to correct the preliminary tax deduction for equipment and facilities intended for carrying out business activity and for investments in facilities (Articles 32 and 32a);
8) does not provide the recipient with the information necessary to implement corrections of the preliminary tax deduction (Article 32, paragraph 5);
9) indicates VAT on a bill or other document, or deducts VAT as preliminary tax, without being entitled to do so (Article 33, paragraph 2, Article 35, paragraph 7, and Article 36, paragraph 4 and 5);
10) deducts the amount of VAT as preliminary tax reimbursement, while not paying for reimbursement of VAT and for the value of received goods and services (Article 34, paragraph 4);
11) fails to pay VAT within the prescribed time limit (Article 36a, Article 37, item 4), and Article 51);
12) fails to cease usage of the recovery system when such action was mandatory (Article 36a, paragraph 7);
13) does not issue a bill (Article 37, item 2), and Article 42);
14) does not keep prescribed records (Article 37, item 3), and Article 46);
15) fails to calculate VAT (Article 37, item 4), and Article 49);
16) fails to inform the tax authority (Article 37, item 5), and Article 51a);
17) does not submit the registration form within the prescribed time limit (Article 38, paragraph 1);
18) does not state the tax ID number in all documents prescribed by this Law (Article 38, paragraph 4);
19) does not submit a request for strike out from the VAT records due to the termination of activity within the prescribed period (Article 38a, paragraph 2);
20) fails to fulfill obligations on the day of cessation of tax activities (Article 40);
21) fails to keep records and documents within the prescribed time limit (Article 47).
A fine of from 10,000 to 50,000 dinars shall be imposed for the violation specified in paragraph 1 of the present Article also on a responsible person within the juridical entity.
A fine of from 12,500 to 500,000 dinars shall be imposed on an entrepreneur for the violation specified in paragraph 1 of the present Article.
A fine of from 5,000 to 50,000 dinars shall be imposed on a taxpayer - natural person.
A fine of from 10,000 to 50,000 dinars shall be imposed for a violation on a responsible person in the court, the agency of local self-government unit, the Bar association, a professional association, as well as in other agency or organisation responsible for filing in the register, should such person strike out a taxpayer from the register without the certificate, specified in Article 38a, paragraph 5 of the present Law.
Article 60a
A fine from 100.000 to 1.000.000 dinars shall be imposed for a violation on the tax debtor -legal entity which is not taxpayer, if it fails to pay the VAT in the prescribed time limit (Article 51, paragraph 3).
A fine from 10.000 to 50.000 dinars shall be imposed also on the responsible person in the juridical entity for the violation from the paragraph 1 of this Article.
A fine from 12.500 to 500.000 dinars shall be imposed on the tax debtor - entrepreneur who is not taxpayer for the violation from the paragraph 1 of this Article.
A fine from 5.000 to 50.000 dinars shall be imposed on the tax debtor - natural person who is not taxpayer for the violation from the paragraph 1 of this Article
Article 61
The Government of the Republic of Serbia shall regulate the enforcement of the present Law in the territory of the Autonomous Province of Kosovo and Metohija in the period of validity of the UN Security Council Resolution number 1244.
XIV TRANSITIONAL AND CONCLUDING PROVISIONS
Article 62
The provisions of the present Law shall apply to the entire trade of goods and services effected from 1 January 2005.
If a taxpayer, for issued bills or received advance payments by 31 December 2004 inclusive, has paid the turnover tax, while the trade of goods and/or services has taken place from 1 January 2005, such taxpayer may reduce the tax duty, by the amount of the paid turnover tax, on the ground of the value added tax relating to the delivered goods and services in the tax period.
Should the goods or services be delivered in parts, in terms of Article 14, paragraph 4 and Article 15, paragraph 3 of the present Law, the provisions of the present Law shall apply to that part of the trade of goods and services which is effected from 1 January 2005, while the provisions of the law regulating the turnover tax shall apply to the part of the trade effected until 31 December 2004 inclusive.
The taxpayer shall be obliged to compose a list of issued bills and received advance payments, specified in paragraph 2 of the present Article, and shall deliver the list to the responsible tax authority until 15 January 2005, at the latest.
Article 63
A person who, in the 12 months preceding the day of filing the record keeping application form, specified in Article 37, item 1) of the present Law, has realised, or has estimated that he is going to realise in subsequent 12 months, a total trade of goods and services exceeding 2,000,000 dinars, shall be obliged to submit to the responsible tax authority a record keeping application form relating to VAT, until 30 September 2004, at the latest.
A person who, in the 12 months preceding the day of filing the record keeping application form, specified in paragraph 1 of the present Article, has realised, or has estimated that he is going to realise in subsequent 12 months a total trade of goods and services exceeding 1,000,000 dinars, may submit to the responsible tax authority a record keeping application form until 30 September 2004, at the latest.
Article 64
Persons who are VAT payers in conformity with the present Law, shall be obliged to make an inventory of stock, on 31 December 2004, of the tobacco manufactured products, alcoholic beverages, coffee, gasoline, diesel fuel and heating oil, intended for further trade, and shall determine the amount of turnover tax on products included in these stocks, that has been calculated through the buying price or at the imports.
The determined amount of tax specified in paragraph 1 of the present Article may be used by the taxpayer as a preliminary tax, in conformity with provisions of the present Law, should he use these products in performing the trade of goods and services, while being entitled to the preliminary tax deduction.
The deduction of preliminary tax specified in paragraph 2 of the present Article may be realised in the amount corresponding to the proportionately effected trade of goods and services in the subsequent tax periods.
The taxpayer shall not be entitled to refund of the determined amount of turnover tax, specified in paragraph 1 of the present Article.
Inventory lists referred to in paragraph 1 of the present Article, as well as the list of suppliers, and/or import customs declarations relating to products specified in paragraph 1 of the present Article, shall be delivered by the taxpayer to the responsible tax authority until 15 January 2005, at the latest.
The minister shall regulate the details of the mode of realisation of the right to turnover tax deduction as a preliminary tax.
Article 65
Persons who are VAT payers in conformity with the present Law shall be obliged to make, on 31 December 2004, an inventory of newly constructed building structures and building structures whose construction is in course.
The newly constructed building structures that are not delivered or paid until 31 December 2004, shall be taxed in conformity with the law regulating the property taxes.
The value of a building structure whose construction is in course, and that is to be delivered from 1 January 2005 on, shall be determined on 31 December 2004, and shall be taxed in conformity with the law regulating the property taxes.
The value of a building structure referred to in paragraph 3 of the present Article, that will take place from 1 January 2005, shall be taxed in conformity with the present Law.
The inventory lists specified in paragraph 1 of the present Article shall be forwarded to the responsible tax authority by the taxpayer until 15 January 2005, at the latest.
Article 66
The duties of calculation and payment of turnover tax relating to products and services, that have taken place until 31 December 2004, shall be subject to the Law on Turnover Tax ("Official Herald of the RS", Nos. 22/2001, 73/2001, 80/2002, and 70/2003).
Article 67
On the day of entering into force of the present Law, the Law on Value Added Tax ("Official Gazette of the FRY", Nos. 74/1999, 4/2000, 9/2000, 69/2000, and 70/2001) shall cease to be valid.
On 1 January 2005 the Law on Turnover Tax ("Official Herald of the RS", Nos. 22/2001, 73/2001, 80/2002, and 70/2003), and the regulations enacted on the ground of that Law, shall cease to be valid, provided the Decree on the Mode of Keeping Trade Records by Means of Fiscal Memory Cash Registers, and on the Dynamics of Introducing such Cash Registers ("Official Herald of the RS", Nos. 5/2003, 39/2003, 72/2003, 2/2004, and 31/2004), and the regulations enacted on the ground of that Decree, shall apply until the beginning of implementation of a law that is going to regulate the keeping of trade records by means of fiscal cash registers.
Article 68
The present Law shall enter into force on the eighth day from the day of publication in the "Official Herald of the Republic of Serbia", and shall apply from 1 January 2005, except for the provisions of Article 37, item 1), Article 63 and the provisions of the present Law that include the powers for enactment of by-laws, which provisions shall apply from the day of entering into force of the present Law.
Independent Articles of the Law on Amending
the Law on Value-Added Tax
("Official Herald of the RS", No. 61/2005)
Article 30[s1]
Persons engaged in the trade of goods and services specified in Article 25, paragraph 2, item 7) of the Law on Value-Added Tax ("Official Herald of the RS", Nos. 84/04 and 86/04) for whom the ministry in charge of health-care affairs has paid the VAT, for goods covered by a contract on donation and humanitarian assistance, shall be entitled to the refund of VAT that was paid at the moment of acquisition of goods in the Republic, and/or at the moment of import, from 1st January 2005 until the coming into force of the present Law.
The right to refund of the VAT paid at the moment of acquisition of goods and services in the Republic, and/or at the moment of import, within the time limits referred to in paragraph 1 of the present article, shall pertain also to the traditional churches and religious communities for the goods and services directly connected with religious activity.
The minister in charge of financial affairs shall regulate in details the procedure of realization of right to the refund of VAT, as well as what shall be considered as goods and services directly connected with religious activity in terms of the present Article.
Article 31[s1]
The provisions of Article 14 of the present Law in the part relating to division of the preliminary tax and to the mode of determining the proportionate tax deduction shall apply from 1st October 2005, and in the part relating to correction of the proportionate tax deduction - from 1st January 2006.
Article 32[s1]
The present Law shall come into force on the eighth day from the day of publishing in the "Official Herald of the Republic of Serbia".
Independent Articles of the Law on Amending
the Law on Value-Added Tax
("Official Herald of the RS", No. 61/2007)
Article 25[s2]
The taxpayer who has realized, in 2007, the total trade of goods and services except for the trade of equipment and installations intended for performing an activity (hereinafter: total trade) which is less than 2.000.000 dinars, shall not calculate and pay VAT for the trading of goods and services which are performed from the 1 st of January 2008.
Article 26[s2]
The tax payer who has realized, in 2007, the total trade which is greater than 2.000.000 dinars but less than 4.000.000 can opt for the duty of calculating and paying VAT if he delivers the written information, to the authorized tax body, in time for submitting tax report for the last tax period of 2007.
The written information from the paragraph 1 of this Article includes the data about:
1) name, address and TIN (tax identification number) of the taxpayer;
2) place and date of information;
3) amount of realized trade in 2007.
The taxpayer from the paragraph 1. of this Article who has not delivered the written information to the authorized tax body in a period provided for in the paragraph 1. of this Article, does not calculate and pay VAT for the trading of goods and services in which he is involved from the 1st of January 2008.
Article 27[s2]
The taxpayer from the Article 25. and 26. paragraph 3. of this Law has the obligation, based on the actual state at the 31 st of December, to make an inventory of goods for which obtaining he has realized his right for discounting the previous tax, as follows:
1) supply of goods obtained from the 1 st of January 2005;
2) equipment and buildings for performing activity for which, at the 1 st of January 2008, there is an obligation of correcting previous tax discount;
3) goods, except goods from the items 1) and 2) of this paragraph, which have been obtained from the day of entering into force of this Law.
The taxpayer from the paragraph 1. of this Article has the obligation to determine the amount of the realized previous tax discount for the goods from paragraph 1. items 1) and 3) of this Article, to make the correction of the previous tax discount for the goods from the paragraph 1. item 2) of this Article and to determine, for these goods, the amount of the corrected previous tax discount in accordance with the Law.
The tax payer has the obligation to deliver the inventory lists, from the paragraph 1. of this Article, to the authorized tax body until the 20 th of January 2008. at latest.
The taxpayer has the obligation to pay the determined amount of the realized previous tax discount and amount of the corrected previous tax discount from the paragraph 2. of this Article, until the 20 th of February 2008.
The minister in charge of financial affairs shall regulate the content of inventory lists from the paragraph 1. of this Article, as well as the method of determining the amount of the realized previous tax discount from the paragraph 2. of this Article.
Article 28[s2]
A fine from 100.000 to 1.000.000 dinars shall be imposed, for violation, on the taxpayer-juridical entity, if:
1) he does not determine the amount of realized and amount of corrected previous tax discount (Article 27. paragraph 2. of this Law);
2) he does not deliver the inventory lists in a prescribed time (Article 27. paragraph 3. of this Law);
3) he does not pay determined amount of realized and amount of corrected previous tax discount in a prescribed time (Article 27. paragraph 4. of this Law).
A fine from 10.000 to 50.000 dinars shall be imposed on the responsible person in juridical entity for the violation from the paragraph 1. of this Article.
A fine from 12.500 to 500.000 dinars shall be imposed on the taxpayer - entrepreneur for the violation from the paragraph 1. of this Article.
A fine from 5.000 to 50.000 dinars shall be imposed on the taxpayer - natural person for the violation from the paragraph 1. of this Article.
Article 29[s2]
The right to refunding VAT from the Article 22. of this Law can be realized only on the basis of purchase/sale apartment agreement which has been verified after the entering in force of this Law.
Article 30[s2]
The minister in charge of financial affairs shall bring the regulation from the Article 27. paragraph 5. of this Law within 90 days from the day of entering this Law into force.
Article 31[s2]
The provisions of Article 11, Article 12. paragraph 2., Article 14 paragraphs 1. and 2. and Article 15 of this Law shall apply from 1 st of January 2008.
Article 32[s2]
This law shall enter into force on the eighth day from the day of publishing in the "Official Herald of the Republic of Serbia".
Independent Articles of the Law on Amending
the Law on Value-Added Tax
("Official Herald of RS", No. 93/2012)
Article 50
Filing tax returns, VAT payment and qualifying for VAT refund for the tax period in 2012 shall be performed in accordance with the provisions of the Law on Value Added Tax ("Official Herald of RS", No. 84/04, 86/04 - correction, 61/05 and 61/07).
Article 51
VAT taxpayer who has opted for payment of VAT until 15 January 2012 may submit an application for strike out from the VAT records, in accordance with this Law, to the competent tax authority, starting on 1 January 2014.
Article 52
This law shall enter into force on the day following the day of its publication in the "Official Herald of the Republic of Serbia", and shall be applied from the 1 January 2013, except for the provisions of Article 15, Article 26, paragraph 2, and Article 45, which will apply from 1 October 2012, Article 32, which shall apply from 31 December 2012, as well as the provisions of this Law that contain authority to adopt by-laws, which shall apply from the date of entry into force of this Law.
Independent Article of the Law on Amending
the Law on Value-Added Tax
("Official Herald of RS", No. 108/2013)
Article 3
This law shall enter into force on the day that follows the day of its publication in the "Official Herald of the Republic of Serbia" and shall apply from 1 January 2014.
For easier determination of harmonized dinar amounts, applicable harmonizeddinaramounts that shall be published by theGovernmentinaccordancewith Article56b, paragraph 6 of the Law onValue-Added Tax, shall be presented by the Editorial Board in this versionof the revised text within the Law itself.Therefore, the revised version of the text shall also state the issuing number of the Government publication wherein the appropriate Government acts determining the dinar amounts were published.