Many of us know that mandatory e-invoicing for B2B is being introduced in Serbia starting January 1st 2023. However, not everyone may know that at the same time as mandatory e-invoicing, taxpayers will also have an additional obligation to report VAT to the Serbian tax authorities via the country's e-invoicing system (‘SEF’).
Who is required to report VAT
According to Article 4 of The Law of Electronic Invoicing, the taxpayer is obliged to electronically record VAT calculations in the SEF system (let's call that obligation 'VAT reporting'). This new obligation will only apply to taxpayers who are required to:
- Calculate VAT on the supply of goods or services performed and pay it to the tax authority, and
- Are not required to document these transactions with an invoice (e.g., a supply to individuals) or such an invoice will not be issued in SEF (e.g., a service taxed in Serbia and performed for foreign entities) due to no access to such a system.
In other words, a taxpayer who documents the supply of goods or services with an electronic invoice issued in the SEF, or a taxpayer who imports goods, will not be required to report VAT. In the latter case, VAT from imports will be reported directly to the SEF by a custom system.
VAT registration in SEF
Calculated VAT must be reported to SEF for the tax period within the submission deadline tax returns.
This means that the registration of VAT in SEF is done:
- Monthly VAT payers - until the 15th of the month for the previous month
- Quarterly VAT payers - until the 15th of the month for the previous quarter
- Taxpayers who are not VAT liable - by the 10th of the month for the previous month
If you need support in gaining compliance with Serbian regulations contact us!