Agenda: -VAT registraion in Serbia: When, why, how -Your Serbian VAT representative: who to appoint, what does the VAT representative do? -Serbian VAT reclaim

1. 1
Serbian VAT for non established businesses-
Everything you need to know
Ivana Blagojevic
Tax Advisor
Webinar
November 19, 2015

2. WHO IS THIS WEBINAR FOR:
• Any business not established in Serbia, which has business operations with/in Serbia. In precise,
any business not established in Serbia, which:
• Supplies goods and services in the territory of Serbia (VAT representation and VAT
registration), or
• Buys goods and services in the territory of Serbia (VAT refund).

3. WHEN ARE GOODS AND SERVICES SUPPLIED IN THE TERRITORY OF SERBIA?
• In order to determine whether a non established business has the obligation to register for VAT in Serbia and
to appoint a VAT representative, it is necessary to assess whether the place of its supplies is in Serbia.
• Serbia is the place of supply of goods, if:
• The goods are located in Serbia in the moment of dispatch or transport
• The goods are installed, in case the goods are installed directly or indirectly by the supplier
• the goods are located in Serbia, but are supplied without dispatch or transport.
• Serbia is the place of supply of services if so prescribed by the Serbian VAT Act (deemed place
of supply).
• Basic principle: the place of supply of services is the place where the service provider has
established its business, unless otherwise provided for in the VAT Act.

4. COMPLIANCE OBLIGATIONS FOR NON ESTABLISHED BUSINESSES, WHICH SUPPLY
GOODS AND SERVICES IN SERBIA
• Registration for VAT purposes
• Appointing of a Serbian VAT representative

5. WHO CAN BE A VAT REPRESENTATIVE OF A NON ESTABLISHED BUSINESS?
• A Serbian taxable person, which:
• Has its registered seat in Serbia
• Is registered for VAT at least 12 months before the application for the VAT representation
• Has settled all its tax obligations
• Has not been convicted of a tax crime
• A Serbian taxable person applies for the VAT representation of a non established business by
submitting a request to the Serbian Tax Administration supported by the following documentation:
• Confirmation that the non established business is registered for VAT in the country of it
establishment
• Notarised (and possibly apostilled) power of attorney for the Serbian VAT representative.
• The Tax Administration approves the VAT representation within 15 days from the submission of the
request.

6. OBLIGATIONS OF A VAT REPRESENTATIVE
• The Serbian VAT representative of a non established business is the alter ego of the non established
business in Serbia when it comes to VAT compliance.
• The Serbian VAT representative:
• Registers the non established business for VAT in Serbia.
• Submits periodical VAT returns for the non established business.
• Issues VAT invoices for the non established business.
• Pays the VAT for the non established business.
• The Serbian VAT representative is jointly and severely liable for all VAT obligations of the non
established business in Serbia!
• Important! If a Serbian VAT representative loses its ‘license’, the non established business is exposed to
risk of losing its VAT registration in Serbia!

7. Q: SO, IS VAT REGISTRATION AND REPRESENTATION OF A NON ESTABLISHED
BUSINESS IN SERBIA MANDATORY?
• Basic rule from the VAT Act: a non established business supplying goods and services in Serbia is
obliged to appoint a VAT representative.
• But, the Serbian tax laws do not provide for a direct penalty for the non established business in
case it does not register for the Serbian VAT and appoint a VAT representative.
• The Serbian VAT Act itself provides for taxation schemes in case the non established business
does not appoint a VAT representative and does not register for VAT.
• Accordingly, VAT registration and appointment of a VAT representative in fact not mandatory.
• But, increased risk for those non established businesses, which have a rep office or a branch in
Serbia!
Q: WHY REGISTER THEN?
- The VAT registration is useful for non established businesses world wide, which supply goods and
services in Serbia, since it enables them to refund all possible input VAT charged to them by their
Serbian suppliers.

8. SERBIAN VAT REFUND FOR NON ESTABLISHED BUSINESSES
• Serbia grants refund of VAT charged on supply of movable goods and services only under the
VAT reciprocity principle. Reciprocity is established with:
• The UK
• The Netherlands
• Denmark
• Slovakia
• Belgium
• Turkey (as of February 24, 2015)
• Germany
• Austria
• Slovenia
• Bosnia and Hercegovina
• Montenegro
• FYR Macedonia
• Croatia (only for fairs)

9. CONDITIONS FOR THE VAT REFUND
• Non established businesses are entitled to refund of VAT charged on movable goods and
services, if:
• The VAT was entered on an invoice drawn up in accordance with the VAT Act and the invoice was
paid;
• The requested refund of VAT exceeds EUR 200 in RSD equivalent calculated according to the average
exchange rate of the National Bank of Serbia valid on the day of the submission of the VAT refund
request;
• The conditions, under which a taxable person established in Serbia would have the right to deduct the
VAT on supply on such movable goods and services, are met;
• The taxable person established outside of Serbia carries out in Serbia only transport of goods exempted
from VAT (transport relative to import of goods, transport relative to free trade zones, transport
relative to export of goods) or international passengers’ bus transport subject to VAT on the section
carried out in Serbia, and no other taxable activities.

10. NECESSARY DOCUMENTATION FOR THE VAT REFUND
• The certificate of VAT registration or registration for another form of consumption tax,
issued by the tax authority of the state where the taxable person is established (original and
certified translation into Serbian).
• Originals and copies of paid invoices for purchased movable goods and services, based on
which the VAT was calculated and paid.
• Bank excerpt as the proof that the invoices have been paid.
• The above list of documents is not exhaustive. Also other documents might be requested by the
Tax Administration from time to time.

11. THE VAT REFUND PROCEDURE
• Upon receipt of the VAT refund request, the Tax Administration examines whether the
conditions for the VAT refund are met, issues a decision and sends it to the taxable person
along with the original invoices.
• The VAT is refunded in the currency of the state where the taxable person is established by
converting the RSD amount of the refund into the foreign currency according to the selling
exchange rate of the National Bank of Serbia valid on the day of the refund. The conversion
expenses are deducted from the refunded VAT. The refund can be paid to the account of the
taxable person in Serbia and abroad.
Q: Is it necessary to have a Serbian tax representative in this procedure?
• No, but highly useful, since the procedure implies communication with the Tax
Administration before and during the VAT refund procedure and additional registrations (e.g.
local tax identification number) might be necessary.

12. DEADLINES
• The VAT refund request must be submitted until June 30 of the current year for VAT charged in
the previous year.
• The Serbian Tax Administration passes a decision within 30 days from the submission of the VAT
request.
• The VAT refund is refunded within 15 days from the delivery of the VAT refund decision.
• The prescribed deadlines might not be upheld in practice.

13. A FEW WORDS ABOUT EUROFAST
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17. Find us online
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18. Thank you!
Q & A