• Tax Highlights - October 2019

Tax Highlights - October 2019

11 October 2019


A Law on Amendments to the Value Added Tax Law was adopted at a National Assembly’s session held on 7 October 2019.

The Law enters into force on the eighth day from the day of its publishing in the Official Gazette. However, the majority of provisions will be applied as of 1 January 2020. The provisions with regard to amendments to Articles 24 and 26 will become effective on 15 October 2019.

Key amendments to the Value Added Tax Law are as follows:

  • The tax treatment of the issuance and transfer of value vouchers have been regulated:
    • the obligation to calculate VAT related to single-purpose value vouchers arises on the day of the voucher trading;
    • the obligation to calculate VAT related to multi-purpose value vouchers arises at the time of the voucher usage (exchanges of value vouchers for goods and services);
  • Rules for determining a tax debtor have been clearly defined – a foreign entity needs to be registered in the VAT system even during a trade in goods in the Republic of Serbia which is exempt from VAT with a right to deduction of prior tax.
  • A method for determining a place of goods trade performed on a ship, an aircraft or a train, as well as a method for determining a place of trading in services related to the sale of food and beverage to be consummated on the spot on a ship, an aircraft or a train have been regulated;
  • Article 16 has been amended and it is related to the issuance of invoices as the moment of an incurrence of a tax liability referring to:
    • services directly associated with the transfer, assignment and provision of usage of copyrights and related rights, patents, licences, trademarks and other intellectual property rights and the provision of technical support while using software, hardware and other equipment for a definite period of time;
  • The determination of a proportionate tax deduction percentage has been clearly specified whereas the obligation to divide the prior tax has been revoked if the determined proportionate percentage of a tax deduction is at least 98%
  • Article 44 that regulates the possibility and method of correcting an error in an invoice containing misstated VAT has been amended.