The VAT proxy of a foreign firm in Serbia is obliged that for and on behalf of foreign firm issues invoices for the traffic of goods and services done in Serbia. Issuing the VAT receipt is one of the most important duties of the VAT representative in order to ensure  the legal business of non-resident. In order to be correct, the receipt issued by the VAT representative must contain all the elements and data in accordance with the Account policy.

VAT representative is obliged to issues correct invoice for every traffic of goods and services of foreign company which is in the VAT system. In accordance with the Account policy and the VAT Law, the receipt issued by the tax representative must contain all basic elements and data about the tax representative.

 

The elements of invoices issued by the VAT proxy in Serbia

For every traffic of goods and services, the VAT payer must issue a receipt. This obligation is the same in case of tax representative foreign company in Serbia.

The invoice issued by the VAT representative must contain these data:

• the title, address and TIN of taxpayer –  the issuer of receipt,
• the place and date of issuing and ordinal number of receipt,
• the title, address and TIN of taxpayer – the recipient of receipt
• the type and quantity (amount) of delivered goods or type and scope of services,
• the date of traffic of goods and services and the amount of advanced payments,
• the amount of tax basis,
• the applied tax rate,
• the amount of VAT added to the basis,
• the annotation about the article of the Law according to which the VAT wasn’t accounted,
• the annotation that the system of payment is employed for the traffic of goods and services.

Additionally, the receipt issued by tax representative for the foreign firm must contain these data about the tax representative besides all the obligatory data. Those are:

• the title, or name and surname of representative
• the address of headquarter if it is a legal entity or the address of residence (physical person)
• the TIN (if a company is VAT representative ), or UPIN if he is a physical person

In the receipt issued by the VAT representative, it is necessary to enlist the info about the TIN or EBS assigned to the foreign citizen by the authorities of the Republic of Serbia.

The enlisted elements are a constitutional and obligatory part of every invoice. However, the Ministry of finance and the minister closely determine the cases where the invoice doesn’t have to be issued or where certain elements can be omitted.

When it comes to the invoices, we can add that there is an obligation of issuing the receipt even in case of advanced payment or partial payment (advanced payment or before the traffic of goods and services). When the final invoice is issued, the advanced payment from the invoice (that contains the VAT) is deducted.

Feel free to contact the tax advisors from our VAT advisory department for additional information about the invoices issued by the VAT representative.

 

 All the obligations of VAT representative in Serbia related to issuing the invoices

The VAT representative of foreign citizen is obliged to issue the receipts in the name and on behalf of the foreign firm, whether or not the foreign has issued the receipt for performed traffic. The obligation exists because the place of traffic is the Republic of Serbia.

If the foreign firm issues the receipt for provided services or traffic of goods in the Republic of Serbia, the tax representative also must issue the receipt for that traffic (in accordance with the Account policy and the VAT Law). Also, if the foreign entity accepts the obligation that for certain traffic issues the document about the account, then the tax representative of foreign entity is also obliged to issue the same document.

The tax representative is obliged to issue a prescribed receipt for the traffic of goods and service in the case when the foreign entity, who is taxpayer, performs the traffic which is free from the VAT. The invoice is issued in accordance with the Account policy and the VAT Law.

No matter if the traffic is performed to the VAT payers, physical persons who are not VAT payers or other persons, the foreign firm must account the VAT and that obligation is done by the representative  Besides accounting the VAT representative issues the invoice, submits the tax applications, pays the VAT and does all other work related to tax rules.

HLB T&M Consulting provides services of a VAT representative in Serbia. We stand at your disposal for every question and consultations, or the tax advisory.  

 

The currency on the receipt issued by the tax proxy

The invoice issued by the VAT representative for foreign entity should contain all the obligatory elements and it must be written in the Serbian language. When it comes to the currency, the amount on receipt issued by the tax representative must be expressed in dinars. This related to all the data: the basis, the accounted VAT, as well as for the compensation when it comes to the traffic free off the VAT.

The value on the VAT representative invoice is expressed in dinars, irrespective of the fact that the compensation for the traffic of goods or non-resident’s service is most commonly agreed in foreign currency. In that case, when the compensation is expressed in the foreign currency the exchange rate of the National bank of Serbia is used for the account (or the agreed rate on the day of beginning of the tax obligation).

If the bondagers haven’t previously arranged by which rate of the business bank they will determine the amount of compensation in the domestic currency (dinars and if it will be buying rate, average rate or selling rate), the amount on the receipt will be determined according to the exchange rate of the National Bank of Serbia. In that case, the VAT representative who issues the invoice for and on behalf of the foreign firm uses the exchange rate of the NBS from the day of beginning the tax obligation, accounts the VAT and on the receipt express the basis and the VAT in dinars.

In order for a foreign entity to have rights on the withholding tax, the condition is that the receipt issued by the tax representative must be expressed in dinars. The same case is with the amount of tax basis and the amount of accounted tax on the VAT.

As your VAT representative in Serbia, HLB T&M Consulting accounting and tax advisory firm from Belgrade will answer all your demands, protect your interests and rights as a taxpayer in the Republic of Serbia. For all the additional questions, feel free to contact us and inform yourself about the tax representative and other accounting services.