Updates in Tax Laws: What Can Businesses Expect?
On October 31, 2024, the Government of the Republic of Serbia adopted a set of tax laws introducing significant changes, particularly to the Law on Value Added Tax (VAT). These amendments, effective January 2025, aim to enhance the efficiency and transparency of the tax system.
Here are the key highlights:
🔹 Preliminary VAT Returns:
A new system for recording VAT is introduced for e-invoice users. Taxpayers will be required to submit a preliminary return alongside their regular tax return, reducing errors and speeding up VAT refunds.
🔹Adjustments to Previous VAT Deductions:
Taxpayers will need to correct prior VAT deductions in cases such as advance payment reductions, invoice cancellations, or adjustments based on court settlements.
🔹 VAT Refunds for Farmers:
Farmers registered for the sale of agricultural and forestry products will be entitled to an 8% VAT refund, providing additional support for this sector.
🔹 Enhanced Oversight:
Stricter record-keeping and reporting obligations are introduced, especially for taxpayers with an annual turnover exceeding 8 million RSD.
🔹 Exiting the VAT System:
New administrative requirements for deregistering from the VAT system include inventory listings, corrections of previous VAT deductions, and submission of detailed inventory lists with the deregistration application.
These changes aim to boost transparency and efficiency but also introduce additional administrative demands for businesses. Our firm is here to help you prepare and adapt to these changes.
For more information, feel free to contact us or schedule a consultation.