When opening a company in Serbia, one must align with the requirements of the tax regime in this state, including for VAT for which a firm must be registered before it begins the operations. Our company formation agents in Serbia can offer assistance and complete information for foreigners interested in the Serbian VAT for a foreign company. Also, the rules for business in 2025 can be entirely explained by one of our specialists.
| Quick Facts | |
|---|---|
| We offer VAT registration services |
Yes |
|
Standard rate |
20% |
|
Lower rates |
10% |
| Who needs VAT registration |
Companies with activities in Serbia |
| Time frame for registration |
Around 30 days |
| VAT for real estate transactions |
– 10% on purchase of residential properties, – 20% on garages and commercial properties |
| Exemptions available |
No VAT for: – trading shares and different securities, – insurance, – apartment lease |
| Period for filing | Monthly or quarterly |
| VAT returns support | Yes |
| VAT refund |
To: – foreign taxpayers, – humanitarian organizations, – religious communities |
| Local tax agent required | Recommended for non-Serbian companies |
| Who collects the VAT |
Serbian Tax Administration |
| Documents for VAT registration |
– Articles of Association, – Certificate of Registration, – other standard forms |
| VAT number format | 9 digits |
| VAT de-registration situations |
In case the company ceases the activities or relocates |
Table of Contents
Serbian VAT for a foreign company
Non-Serbian entities must respect the tax rules imposed in this country. Serbian VAT for a foreign company has the same rules as imposed for the local firms, and below we present a few formalities:
- Foreign companies are not obliged to appoint a fiscal representative, however, it is recommended to have one for a smooth and rapid registration process.
- The VAT registration in Serbia is done with the Serbian tax authorities.
- The company’s documents such as the Certificate of Incorporation and Certificate of Good Standing are required for VAT registration in Serbia.
- Late penalties can be imposed for companies that do not register for VAT in Serbia.
- Those interested in Serbian VAT registration for a foreign company can solicit the support of our local company formation agents in Serbia who can properly manage the formalities.
VAT registration for a local company in Serbia
Both local and foreign companies in Serbia must comply with the rules for VAT registration in Serbia. As we mentioned above, the company’s documents are needed for registration. Then, the tax authorities will issue the VAT tax code, which certifies that the respective company complies with the legislation regarding the payment of taxes.
The VAT registration for a local company in Serbia is made if the firm supplies goods and services on the territory of Serbia, but also in other locations, and imported goods in Serbia, as long as there are no restrictions in this regard. You have the support of our local agents for VAT registration for a local company in Serbia.
How to check if a company is registered to pay taxes
Those interested in checking a company’s registration for paying taxes, including VAT, can do so by accessing the database of the Serbian Tax Authority. All the data about the company are mentioned here, such as:
- Name and address of the company.
- Number of employees
- VAT ID number.
- Registered bank account.
- Date of company registration in Serbia.
A company is seen as a taxpayer in Serbia only if the VAT ID is issued, alongside a decision in this sense. Such a decision must also comprise details about the tax representative for the respective company which can be one of our local agents in Serbia.
You might want to watch the following video presentation on this topic:
Non-established companies and VAT in Serbia
There is the possibility of VAT registration in Serbia without the company being established in this country. The VAT rate is the same, 20%, and involves companies that are not registered in Serbia for their activities, that do not have a representative office, and that offer digital services for sale in this country. We remind you of the support of our local agents who can provide you with the necessary support to do VAT registration in Serbia without complications.
Information about the VAT imposed in Serbia
From the beginning, we mention the Law on Value Added Tax in Serbia was revised in 2012, but additional modifications were observed each year. In this sense, it is good to know that the standard VAT in Serbia is set at a 20% rate for certain goods and services, but there is also a lower VAT rate of 8% which is applicable to special categories like basic food, medicines, bottled water, computers, public transportation, utilities, newspapers, and magazines.
Having knowledge about the taxes which need to be paid in Serbia will help the entrepreneurs set up their companies in complete agreement with the requirements imposed by the legislation of this country. Company formation in Serbia is an easy process that can be overseen by our Serbian team of company formation specialists.
The Serbian Tax Administration is the institution that issues the approvals for the VAT representation and registration of foreign companies. In many cases, the VAT ID is issued in about 2 weeks or more.
VAT exemptions in Serbia
In Serbia, there are certain categories of goods and services that are not subject to VAT, such as:
- the export of goods;
- international air transport;
- education;
- medical services;
- financial services;
- charity;
- culture and entertainment;
- organizing of gambling and lottery services.
For more information about the tax exemptions in Serbia, you may address our company incorporation agents in Serbia.
VAT in the real estate sector in Serbia in 2025
The VAT imposed on the first transfer of the right of use of a real estate property in Serbia is set at 8%. As for the new buildings in Serbia, their prices will comprise a VAT of 20%. Besides that, the property tax in Serbia is set at a rate of 0.4% of the market value and it is imposed once per year for companies that own properties in this country. Besides this tax, a transfer fee or 2.5% rate is issued for real estate properties that are at a certain point subject to ownership transfer. It is good to know that there are no stamp duties in Serbia.
Is there a VAT threshold in Serbia?
No, there is no VAT threshold in Serbia and this means that each product or service sale is subject to VAT, depending on the category of goods. Please explore our services and ask for assistance setting up a company in Serbia and also VAT registration.
Do I need a local tax representative in Serbia?
No, this is not imposed, however, it is recommended to pay attention to the requirements for VAT registration in Serbia and solicit the support of a fiscal representative, especially if you are a foreign business owner. You can get in touch with one of our consultants who can represent your company if you are a foreign entrepreneur, especially in company registration and tax registration in Serbia, including VAT.
Is there a VAT for digital products and services in Serbia?
Yes, the digital tax policies apply to site hosting services, internet providers, cloud-based software services, streaming music, and audio-visual products like e-books, movies, images, etc. The VAT regime in Serbia might seem complex for digital services and products and will depend on the number of sales.
The content of a VAT invoice
All goods and services are sold with an invoice which needs to have specific content and information. The business name, the invoice date, the VAT number, the customer’s name, the VAT rate imposed, and the final amount are important details comprised by an invoice, regardless of the products or services sold, except the ones where such a tax is not imposed. Companies in Serbia normally use particular software to issue and send invoices to clients and partners.
The status of taxpayers in Serbia comes with a series of financial responsibilities for which an accountant is needed. If you would like to open a company in Serbia and need an accounting firm, you can talk to us and ask for support. You might find useful the following information about the VAT rate and its applicability to the supply of goods:
- The delivery of products manufactured in accordance with the client’s request.
- All products that are subject to import and export trading.
- The delivery of products or services under a leasing contract involving movable or immovable properties.
- Even the transfer of ownership rights, copyrights, and patents is subject to such a tax.
- The supply of services with compensation enters the VAT category.
The VAT rule of reciprocity
Under the rule of reciprocity, Serbia can grant a VAT refund for citizens or companies from countries where the same rule applies. For example, Serbia signed a series of VAT reciprocity agreements with countries like Montenegro, Slovenia, Germany, Austria, the Netherlands, Norway, Slovakia, Romania, Turkey, Switzerland, Croatia, Belgium, UK, and Macedonia.
The VAT refund applies to specific means of transportation, car repairs, car rentals, accommodation, and lodging, restaurant services, and related costs of seminars, fairs, and exhibitions. All original invoices, proof of payment, bank account statements, and other specific forms need to be considered for a VAT refund in Serbia. All the information you need in this matter can be offered by one of our company formation agents in Serbia.
Short facts about double tax treaties in Serbia
Serbia signed numerous double taxation agreements with countries worldwide with the intention of providing extra protection to company profits. The avoidance of fiscal evasion is another important aspect related to the provisions of the double taxation arrangements signed by Serbia. Albania, Armenia, Austria, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Canada, Czech Republic, Cyprus Estonia, Denmark, Egypt, Finland, France, Greece, Ghana, Georgia, Hungary, Italy, Iran, India, Kazakhstan, Indonesia, Libya, Kuwait, Luxembourg, Latvia, Lithuania, Macedonia, Malaysia, Morocco, Montenegro, Malta, Norway, North Korea, the Netherlands, Pakistan, Poland, Qatar, Romania, Russia, Slovakia, Slovenia, South Korea, Sweden, Sri Lanka, Switzerland, Spain, Tunisia, Ukraine, Turkey, UK, the UAE, Uganda, Vietnam, and Zimbabwe are among the countries that signed a double taxation treaty with Serbia.
Tax minimization in Serbia – what to consider
The VAT is an important tax in Serbia and one that should be considered when having a business in this country, alongside the corporate tax, dividend tax, and many other fees. The importance of having a tax minimization strategy in the company should be in the attention of both local and foreign investors in Serbia with activities in this country. Tax minimization tools in Serbia should be implemented in companies of any kind in order to avoid overpaying taxes. Our accountants in Serbia can give in-depth details about the financial tools that might be optimal for your business structure.
Paying the bills and credits in advance for a couple of months might be subject to varied tax exemptions or lower fees. A tax plan can include tax deductions for bonuses, gifts, office supplies, subscriptions, and many more. Charities in Serbia can be excellent options when it comes to tax minimization methods, and that because foundations are not subject to taxation in this country. A complete tax plan can be provided by one of our consultants in Serbia.
Deductible VAT in Serbia
Companies registered for tax payment in Serbia can deduct the VAT input only respecting a few requirements:
- The taxpayer respects the established VAT invoice model as stated by the legislation.
- The company owners in Serbia use source materials for their own consumer functions.
- On the other hand, extra VAT input in a given tax period can be compensated or refunded in the following periods.
- It should be noted that a tax representative is needed when incorporating a company in Serbia. This can be whether a company or specialists with residency in Serbia and with a clear criminal record.
If you are interested in more details about the VAT registration in Serbia in 2025 but also on how companies can be registered in Serbia, please feel free to contact our team of advisors at any time. We assist foreigners interested in company incorporation in Serbia.