Each VAT payer in Serbia is obliged to issue an invoice when goods and services are traded with other legal entities. On the other hand, there are cases in which there is no obligation to issue VAT invoices, so the companies that are in the VAT system then do not have to issue an invoice in which they will show this tax.
The invoice issue is made at the moment when the goods are delivered to the buyer, regardless of whether it is delivered on the business premises of the supplier or the buyer. The service receipt is delivered after the service is performed.
The VAT invoice is the basic and most important document of each taxpayer of value-added tax. This business document is important for calculating and paying this tax in one tax period, which may be monthly or quarterly.
The invoice displays a calculated tax on the value of the turnover. And depending on the value of turnover, whether it is about selling a product or providing a service, a taxpayer who is in the VAT system can exercise the right to deduction of the previous tax.
A company registered in the VAT system can calculate this tax on a monthly or quarterly basis.
The obligation to keep VAT records is prescribed by the Regulation on the form, content, and method of keeping records on value-added tax, which defines the form, content, and method of keeping records.
As of January 1, 2018, the company registered in the VAT system in Belgrade / Serbia is obliged to keep the VAT records. Records were introduced for the proper calculation and payment of value-added tax.
Records are based on received and issued invoices. This obligation includes the following:
The VAT calculation review is submitted to the Tax Administration, together with the tax return. In the case that for a certain period of time a legal entity does not submit a calculation review at the same time as a tax return, it will be considered that the tax return is not filed.
The VAT calculation review form has over six pages and it is necessary to enter a great number of data into the corresponding fields. We recommend that a verified bookkeeping agency complete the VAT calculation, fill out the tax return of VAT, and enter the data into the calculation review form.
Due to numerous legal regulations, limitations and electronic tax returns, this is usually part of services provided by an accounting firm in Belgrade that performs the full scope of bookkeeping services including VAT management.
In order for a legal entity to obtain the status of a VAT taxpayer, he should realize a total turnover of more than 8.000.000 dinars during the previous 12 months. The VAT obligation begins on the following day or the next day from the date of the obligation to record and pay.
Additionally, a company can itself chose to pay VAT, and then the obligation begins from the date on which the taxpayer is identified.
If a company in the VAT system and during its operations realizes a taxable turnover, it is obliged to issue a VAT invoice in the following situations:
VAT invoices issued prior to the occurrence of the turnover are improper. Companies that are in the VAT system do not need to issue VAT invoices before the completed turnover.
When an advance account is issued, this rule does not apply. The company has an obligation to issue an advance VAT invoice when it comes to advance payment. In this case, the fee or part of the fee is paid before the turnover is made, so the company is obliged to issue an advance payment for certain goods and services.
Legal entities are not obliged to issue VAT invoices in the following situations:
When a company operates with citizens, that is, natural persons, it doesn’t have the obligation to issue a VAT invoice to them. This rule does not apply when, say, LLC does business with an entrepreneur, because then he has an obligation to issue an invoice.
When a legal entity sells its products or performs services to natural persons, it is obliged to issue a mandatory fiscal account.
The company that makes the turnover-free of charge – sells products or performs services for free, is not obliged to issue a VAT invoice. It can certainly issue it, but it does not have to, regardless of whether the turnover is taxable.
The VAT taxpayer is not obligated to issue a VAT invoice when he executes a turnover for which the tax exemption is prescribed without the right to deduct the previous tax.
Legal entities that are not registered in the VAT system, that is, aren’t taxpayers of the VAT, aren’t obliged to issue invoices in which VAT is shown.
Regardless of whether the account recipient is a taxpayer or not, a legal entity that does not exceed 8.000.000 dinars for 12 months and is not a VAT payer, does not disclose this tax in their accounts.
In certain cases, foreign companies operating in the Republic of Serbia without a representative office, can choose their VAT attorney /proxy in Serbia and be recorded for the obligation to pay VAT. In this case, the amount of turnover in the previous 12 months is not a limiting factor, but this obligation is for every foreign legal entity that carries out taxable turnovers in our country.
A foreign company may only have one tax attorney and that may be a natural person, an entrepreneur or a legal entity, i.e. LLC.
An authorized tax attorney must meet the requirements:
The tax attorney of a foreign legal entity cannot be its related legal entity or its permanent business establishment.
In this case, the attorney is a VAT taxpayer and performs all business on behalf of and for the account of a foreign legal entity. It is obliged to calculate VAT and submit tax returns, issue invoices, pay VAT and others.
A foreign company needs a tax attorney in our country. It is recommended to consult professional accounting outsourcing companies and tax advisors from Serbia who can help with these accounting services and provide support in optimizing VAT.