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  • Tax Highlights - June 2020

Tax Highlights - Jun 2020

25 June 2020


Following are presented novelties on the new Public procurement Act (Official Gazette of the RS, No. 91/19, hereinafter referred to as “the PPA”), which came into force on 1 January 2020, and which start to apply as of 1 July 2020.

The PPA will bring significant reduction and simplification of public procurement procedures, reduction of administrative burden on both the contracting authority and the tenderer side, and in particular reduction of costs of participation in public procurement procedures for small and medium-sized enterprises, which may not have adequate administrative and professional capacities.

One of the procedures that is recommended to be carried out before implementation of the new PPA, is obtaining the certificate on the non-existence of the grounds for exclusion from the public procurement procedure in the register of bidders maintained by the Serbian Business Registers Agency

Namely, legal entities registered with the register of bidders are required to submit a request for obtaining the above-mentioned certificate in the period from 1 March to 30 June 2020.

The request for the issuance of a certificate on the non-existence of grounds for exclusion from the public procurement procedure should be submitted by the representative of the legal entity or a person authorized by the representative.

In summary, a legal entity that is already registered in the Register of Bidders, has to obtain the necessary certificates that it does not fulfil any of the law provided legal limitations, that are grounds for exclusion, listed in the detail in Article 111, paragraph 1, item 1) and 2). If the company does not obtain the mentioned certificate within the given deadline, the legal entity will be deleted from the Register of Bidders ex officio, after which, if it so wishes, it will have to submit a new request for registration into registry of bidders.

Amongst many changes that the new PPA will implement, below are stated the few most notable ones that will largely affect current public procurement procedure:

  1. Shortening the procedure of each individual public procurement with the submission of a statement on the fulfillment of the criteria for participation in public procurement issued by the register of bidders. Only after the selection of the most favorable bidder it will be necessary to submit additional documentation,
  2. On awarding the contract in the public procurement procedure, the ratio of price and quality of offered services shall be taken into account instead of the previous solution which was based on the most favorable price,
  3. New procedure has been introduced for public procurement of goods and services that are not available on the market – innovation partnership,
  4. Dynamic procurement system is prescribed - a multi-year public procurement procedure that takes place automatically, electronically by which several bidders are determined in a longer period of time for the procurement of goods for which there is a continuous need,
  5. The same public procurement procedure is applied regardless of the value of the procurement,
  6. Public procurement portal is being introduced, as part of digitalization process, and all communication and data exchange in the public procurement procedure, according to the prescribed dynamics, is carried out by electronic means