The procedure of VAT refund represents exercising the right on tax return to the VAT payer. The refund is given to the recipient of goods or to user of services who paid the VAT during the purchase of that good or service.
If the amount of previous tax is higher than the amount of tax obligation, the VAT payer can exercise his right on a tax return. To do that, it is necessary to show the VAT on tax application and the amount of return tax. He has two possibilities: to choose tax return (refund) or to use it as a tax credit.
To a foreign person or any other taxpayer who has the right on TAX refund and who chooses this option, the tax is refunded on the account of bank that was named in the application for registering the VAT payers. Choosing the option of VAT refund isn’t considered as demand and this right can be exercised by applying for it to the Tax Administration on ZPPPA form.
On the other hand, if a taxpayer doesn’t choose for VAT refund, that amount can be used as a tax credit. He can use it for paying regular tax obligation during a certain tax period. If he still has an unused amount of tax credit after paying for all the tax obligations, a foreign citizen or another taxpayer can get the refund of the unused tax credit. In that case, the application is submitted to authorised tax authorities earliest before the end of deadline for submitting the tax application for the current tax period.
HLB T&M Consulting is an accounting agency for business and tax consulting. We can help you apply for the VAT refund and exercise your rights.
According to the current VAT Law and the Rulebook on the procedure for realisation of the right to a VAT refund there are four types of VAT refund: Those are:
Foreign persons or foreign taxpayers can exercise the right on refund if they perform taxable traffic of movable property and provide services in the Republic of Serbia. The refund of the VAT in Serbia for foreign taxpayers is done under next conditions:
Related to the last condition, if a foreign person or foreign company in the Republic of Serbia performs the taxable traffic of goods and services, besides the ones enlisted above, he doesn’t have right on VAT refund.
So that a foreign taxpayer gets the VAT refund, an authorised person must submit the application to the Tax Administration together with the additional documents. The application and documents are sent electronically through the web site of the Tax Administration. The deadline for applying is at the latest to the 30th of June of the current year and it is submitted once a year for all the goods, or services supplied during the current calendar year (in Serbia).
These are the documents you have to submit:
HLB T&M Consulting accounting agency we offer support when it comes to the analysis and possibilities for VAT, finding VAT representative and registration in the VAT system, accounting the VAT and everything related to the VAT refund. Contact us for additional questions and submitting the necessary documentation.
The organisations registered for humanitarian work can also exercise the right on the VAT refund. These conditions must be met:
For humanitarian organisations to exercise their right on the VAT refund, it is necessary to apply the application on the prescribed form together with the additional documentation to the Tax administration or their Headquarter. The application is submitted once a year for all the goods supplied in our country during the previous calendar year. The deadline for submission is at the latest until the 30th of June of the current year.
The submitted documents are:
Traditional churches and religious communities have the right to exercise the VAT refund. This is the list of them:
The traffic for which you can get the refund is acquiring goods or acquired or received services used in the Republic of Serbia, as well as the import of goods. The product and services for which you can get the VAT refund must be directly related to religion or used for religious communities.
The VAT refund for traditional churches and religious communities can be performed if these conditions are met:
The application for the refund can be submitted within 60 days after the end of calendar trimester when the taxable traffic happened. The submitted documents are:
HLB T&M Consulting accounting agency stands at your disposal for all the additional questions about the refund. We provide services of business consulting and feel free to send us questionary to schedule the consultations.
Diplomatic and consular offices as well as international organisations can exercise the right on the VAT refund if the traffic of goods and services or import is done for:
They can get VAT refund in Serbia if certain conditions are met:
To exercise the right, it is necessary to submit the application on the prescribed form to the Tax administration. The application is submitted by a person authorized for issuing official and personal orders for the supply of good and services that are VAT free. The deadline for applying for VAT refund is 30 days before the end of calendar trimester in which the supply of goods and services in Serbia was performed or in which the import in the Republic of Serbia happened.
The documents that must be submitted are:
As your business and tax advisor, we can help you with the submission of demand so that you can exercise the right on the VAT refund in Serbia. Our support includes accounting and expressing the VAT in order to for you to successfully exercise your tax rights in our country. Feel free to contact our team of tax experts and schedule consultations for all additional questions regarding the VAT refund.