NEW LAW ON ELECTRONIC INVOICING
The Assembly of the Republic of Serbia adopted the Law on Electronic Invoicing ("Law"), which was published in the "Official Gazette of the Republic of Serbia no. (44/2021)” on April 29, 2021 and which entered into force on May 7, 2021. The beginning of the application of the Law has been postponed and specially regulated for public and private sector entities.
Obligations introduced by a the Law are:
- issuing and reception of electronic invoices;
- keeping of electronic invoices
- recording of VAT calculations in Electronic invoices system.
1. Issuing and reception of electronic invoices:
- Obligation for issuing of electronic invoice have both public and private entities (registered VAT payers), based on their mutual transactions, as well as VAT proxies of foreign legal entities registered for VAT in Serbia based on transactions with private and public sector entities;
- The Law envisages possibility of appointing of separate person – information intermediary, who will have consent of the Ministry of Finance for issuing, recording, processing, sending, receiving and keeping of electronic invoices and supporting documents;
- Entrepreneurs and legal entities not registered for VAT are not obliged to issue electronic invoices;
The beginning of the application of the Law for public and private sector entities:
- from January 1, 2022 public sector entities shall have obligation to receive and keep electronic invoice issued according to the Law, as well as to issue electronic invoice to other public sector entity,
- from January 1, 2022 public sector entities shall have obligation to electronically record calculation of VAT,
- from January 1, 2022 private sector entities shall have obligation to issue electronic invoice to public sector entity,
- from July 1, 2022 public sector entities shall be obliged to issue electronic invoice to private sector entities, and private sector entities will be obliged to receive electronic invoice from public sector entities and to keep it.
- From January 1, 2023 shall start application of provisions of the Law which relates to obligation of issuing and keeping of electronic invoices in transactions between private sector entities
2. Keeping of electronic invoices
- Electronic invoices issued or received by public sector entity shoud be kept permanently in the electronic invoices system;
- Electronic invoices issued or received from private entity sector should be kept for 10 years starting from the end of year in which electronic invoice is issued;
3. Recording of VAT calculation in Electronic Invoices system
- The Law prescribes special obligation for recording of VAT calculations in the Electronic invoices system, which obligation besides registered VAT payers have public sector entities and and taxpayers not registered for VAT, but are considered VAT payers according to VAT Law;
- Obligation for recording of VAT calculation in the Electronic invoices system exists in situation when for example:
- Exists obligation for applying of the reverse charge mechanism for supply performed by foreign legal entity not registered for VAT;
- Exists obligation for calculation of VAT on shortage of goods delivered or write-off of goods,
- Exists obligation for calculation of VAT for taking assets for personal needs of founders of the company, employees and other persons, and in other situations in which person is obliged to calculate VAT but have no obligation to issue invoice.
The issuer, the recipient of the electronic invoice, as well as the information intermediary, are obliged to provide insight into the data and business documentation to the person performing supervision (Ministry of Finance) with the threat of a fine if they do not act accordingly.
Significant fines in the range of RSD 200,000 to RSD 2,000,000 for public entities and from RSD 50,000 to RSD 500,000 for private sector entities are envisaged, for:
- violation of the obligation to issue an electronic invoice,
- use the data available in the system for purposes not prescribed by law,
- do not receive an electronic invoice in accordance with the law.
- as well as fines in the range of RSD 200,000 to RSD 2,000,000 for an information intermediary who, by providing services in the field of electronic invoicing, endangers the security and functioning of the Electronic Invoicing System.