New value added tax (VAT) legislation in Serbia effective July 1, 2018

Belgrade, 7 June 2018

We note that the Serbian parliament issued a new VAT law in April 2018. The most important new rules are:

• 10% VAT rate applies for the supply and import of full and supplementary mixtures for cattle feed.
• A new exemption (with right to deduct input tax) will be allowed for certain delivery of goods from a “free zone” in connection with transport and other related services.
• Revised rules for VAT refunds on foreign entities.
• Any issue of an invoice before provision of services will qualify as a taxable event for any services in connection with intellectual properties rights provided that they are directly linked to the related supplies of services and that it is delivered by the same entity.