VAT representative in Serbia

If a foreign company (fe Microsoft does it) provides their services with a place of trade in Republic to Serbia to non-VAT payers, pursuant to Article 10a, Paragraphs 1 and 2 of the VAT Law, it is obliged to designate a tax proxy and record the liability VAT payments, regardless of the amount of that turnover in the previous 12 months.

In practice, this means that any sale of goods and services with a place of trade in the Republic of Serbia to a person/entety who is not subject to VAT (most often those are physical persons), regardless of their number and intensity, means an obligation to register a foreign entety into the Serbian VAT system.

A foreign person registered in the VAT system is a monthly VAT payer.

The process of registering for the VAT system usually takes up to 15 business days, and for registration it is necessary, among other things:

  • a document certifying that the foreign person who gave the power of attorney is a VAT taxpayer in the country where is domiciled
  • power of attorney certified by a person competent for certification (court, notary public, etc.) authorizing a representative to perform all tasks related to fulfilling obligations and exercising the rights that a foreign person as VAT payer has under the Law.

A tax (VAT) representative of a foreign person may be a person:

  • with residence, headquarter in the Republic of Serbia
  • who is a registered VAT payer at least 12 months before applying for a tax authorization
  • there are no overdue and unpaid public revenue obligations at the date of application
  • who has not been convicted of a tax offense by a final judgment

The tax attorney performs the following tasks:

  • issuing invoices on behalf and for the account of a foreign person
  • monthly VAT calculation
  • filing (monthly) VAT report
  • payment of VAT and other VAT related actions

AKTIVA sistem advises clients regarding the analysis and selection of possibilities in the field of VAT and performs the tasks of a VAT representative. Feel free to contact us.

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