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Vat representative in Serbia

HBL > Vat representative in Serbia

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:

  • Prepare and pay Serbian Tax to relevant tax authorities
  • Comply with local VAT regulation, submit VAT return, issue VAT invoices, prepare VAT records
  • Communicate and deals with local Tax Authorities related to all tax issues

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.


# Requirements for vat representative


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:

  • Has a permanent address or headquarter in the Republic;
  • Has been registered as VAT taxpayer for at least 12 months before applying for approval of authorized tax representative;
  • On the day of application does not have matured and unpaid obligations for public income based on the performance of the business, as prescribed by the Tax Administration;
  • Has not been convicted of tax crime.


# Content of application for vat representative


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:

  • Form ZPPPDV – Application for approval of authorized tax representative for value-added tax
  • Proof of residence or seat of the authorized tax representative;
  • Proof of authorized tax representative not being convicted for tax crime;
  • A document certifying that the foreign entity who gave the power of attorney is subject to VAT in the country of its residence;
  • POA stamped by the body responsible for certification (court, notary, etc.), that gives the authority to authorized tax representative to perform all tasks related to fulfillment of obligations and achieving all the benefits of a foreign entity as defined under the Law related to VAT.

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.


# Deadline for submission of vat application in Serbia


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.


# Penalties in case of absence of tax representative


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.


Our services of tax representative in Belgrade


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.