If you are a company established in a country outside of Republic of Serbia and If you provide services or sell goods to the customers located in Serbia, HLB T&M consulting can assist you and be appointed as a VAT representative who will act on behalf of the client and provide the following services:
With a change of legislation, Serbia will no longer require a foreign business to set up an establishment in order to have activities in the country. It is now possible to register for VAT through a fiscal representative in Serbia, with the corresponding benefits from a corporate tax perspective. Operating costs will also be reduced as human and technical resources are no longer required in the country. The fiscal representative will be jointly and severally liable for the VAT obligations of the company in Serbia.
Also, HLB T&M Consulting will assist you to get a VAT number, open bank account and prepare and submit documentation to appoint a tax representative in Belgrade.
Starting from October 2015, all the companies which don’t have a sear in the Republic of Serbia have the possibility to register for VAT in Serbia and use the services of VAT representative. The first step in the registration of a foreign company in Serbia for VAT, in order to exercise its right, is to appoint a fiscal representative which will act on behalf of the client. In order to be in a position of VAT representative, a local company needs to fulfill the following conditions:
An application needs to be submitted to headquarter of tax municipality and 15 days after the application has been submitted, the relevant authority needs to present decision of registration of VAT representative or cancelation of request. Necessary documentation that needs to be submitted is the following:
Procedure for VAT registration in Serbia generally lasts about 15 days from the moment when required documentation is submitted to local authorities. After obtaining of decision which allows Serbian resident to act as a fiscal representative of a non-resident company, VAT representative on behalf of foreign entity calculates VAT, submit VAT application, pays VAT, provide the invoices, etc.
The due date to file VAT returns in Serbia has been updated. All quarterly and monthly VAT returns will now be due by the 15th day of the current month following the end of the previous month which is the subject of the reporting period. There is no distinction between quarterly and monthly VAT returns. This last change in Law gives a shorter period to prepare VAT application, as the previous deadline prescribed by Serbian legislation for submission was the 20th day of the month.
If a foreign entity is performing a taxable supply of goods and services, it must appoint a VAT representative in Serbia and register in the VAT system, irrespective of the amount of turnover. This obligation is waived if the turnover is performed exclusively to VAT taxpayers, public administration entities, or entities that provide services of passenger transport by bus.
The implementation of the provisions on representatives and registration for VAT for foreigners is now supported with the amendment of the Law on Tax Procedure and Tax Administration, which provides for penalties ranging from 100,000 to 2,000,000 RSD for non-compliance.
HLB T&M Consulting can assist you to optimize your VAT issues and support you from the very beginning of your business in Serbia. As a VAT representative, our obligation will include the obligation to register foreign principal for VAT, to issue invoices, file VAT returns, and pay VAT on behalf of the foreign taxpayer. Contact our tax advisors which will describe the process and regulation in more detail and optimize your business in Serbia.