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Serbian VAT refund to non-established businesses

01/06/2016

Taxable persons who are not established in Serbia but paid Serbian VAT during 2015, will have the right to request a refund of such VAT until 30 June 2016.

Pursuant to the Serbian VAT Act , the Serbian Tax Administration will refund VAT to a person not established in Serbia, that was paid on supplied movable goods and services in the territory of Serbia, provided that:

  • VAT charged on the supply of goods and services is stated on the invoice drawn up in accordance with the VAT Act and that the invoice is settled;
  • the requested VAT refund exceeds the RSD equivalent of EUR 200 according to the middle exchange rate of the National Bank of Serbia calculated on the day of the application submission;
  • the conditions under which a taxable person established in Serbia would have the right to deductions for these goods and services in line with the VAT Act are met;
  • the taxable person not established in Serbia does not perform any taxable supplies in Serbia, except supplies to recipients in the free trade zones or passengers’ transportation subject to special VAT scheme and that
  • there is a reciprocity between Serbia and the country where the applicant has established his business.

Taxable persons from following countries can apply for VAT refund in Serbia:

  • Austria
  • Belgium
  • Bosnia and Herzegovina
  • Croatia (until October 8, 2015 only on expenses pertaining to participation on fairs, from October 8, 2015 full reciprocity introduced)
  • Denmark
  • Germany
  • FYR Macedonia
  • Montenegro
  • Slovakia
  • Slovenia
  • The Netherlands
  • The UK
  • Turkey (from February 24, 2015, only on expenses in relation to gas, spare parts and maintenance and repairs in relation to transport, and on expenses pertaining to participation on fairs and exhibitions).

The VAT refund application has to be submitted in paper and signed by the authorized person. The signed application must be submitted no later than 30 June 2016 to the headquarters of the Serbian Tax Administration. The application can be submitted only once, i.e. all paid invoices with the Serbian VAT must be submitted along with one application. Otherwise no VAT refund will be granted.

The applicant must submit the following documentation with the VAT refund application:

  • the confirmation of VAT registration in the country where he has established his business
  • the original invoices based on which the VAT refund is requested.

The Tax Administration controls the submitted documents and information and passes a decision on the VAT refund within 30 days from the application submission date. Please note, the actual timeframe for the passing of the decision is usually longer and lasts several months.

In case a positive decision is passed by the Tax Administration, VAT is refunded within 15 days from the receipt of the decision by the applicant. After the VAT refund decision is passed, the Tax Administration:
•returns the original invoices to the applicant
•VAT is refunded in the currency of the applicant's resident country, to the account designated by the applicant. The conversion from RSD into the resident country currency is made according to the selling exchange rate of the National Bank of Serbia valid on the day of the refund as reduced by the conversion expenses.

Authors

Picture of Ivana Blagojević
Ivana Blagojević
Senior Tax Lawyer
Belgrade