The Rulebook on Amendments to the Rulebook on Value Added Tax (“Official Gazette of the Republic of Serbia,” No. 65/2024,“Rulebook”) came into effect on August 10, 2024, and will be implemented starting from September 1, 2024, except for the provisions regarding the disclosure of data in the POPDV Form, which will be applied from the submission of tax returns for tax periods starting after August 31, 2024.
The amendments to the Rulebook are directly related to changes in electronic invoicing regulations and are designed to improve transparency and efficiency in VAT calculation, as well as to simplify procedures for reducing the tax base and adjusting calculated VAT. These changes include the following:
- Reduction of the taxable base – Changes have been introduced to allow the reduction of the calculated VAT for recipients of goods or services in cases where the taxable base is subsequently reduced. This option is available if the recipient possesses a document confirming the reduction of the payment, as well as an internal invoice.
- Changes related to advances – The amendments define that a paid advance that ceases to be considered as an advance may be treated as part of the payment for goods or services, which affects the VAT calculation. Additionally, the conditions for reducing VAT in the event of a reduction of the advance have been clarified.
- Tax exemption – The amendments extend the deadline for fulfilling the conditions for VAT exemption until the 10th day of the month following the tax period in which the transaction occurred, provided that all required documents are issued in accordance with the law.
- Electronic invoices and reports – Conditions and deadlines for issuing consolidated invoices and electronic invoices for multiple transactions conducted during a tax period have been defined, facilitating record-keeping and compliance with new regulations.
- Cancellation of invoices – The Rulebook now allows taxpayers to cancel invoices and advances with the appropriate adjustment of VAT. The conditions under which cancellations can be carried out have been specified, as well as the obligation to maintain separate records of these changes.