Tax rate by region Serbia

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Understanding VAT Requirements for SaaS Businesses in Serbia

SaaS businesses in Serbia are subject to the country’s Value Added Tax (VAT) system, which was implemented in 2005 for revenue generation and tax modernization. The standard VAT rate is 20%, applicable to SaaS and other digital services. Understanding these requirements and implementing best practices is crucial for SaaS companies operating in Serbia.

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Serbia

Serbia implemented a VAT system in 2005 to enhance revenue generation and modernize its tax framework.

Official government link: Tax Administration

20.00%

E-products and services VAT/Sales tax rate

10.00%

Reduced tax rate

Reduced tax rate product categories

Publications, newspapers, and monographs. 

Exempted product categories

No digital goods or services exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Registration must be done regardless of turnover value

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

The application is submitted online through a special portal that makes it easy to send documents to the tax office. This portal helps ensure that all documents are submitted correctly and quickly, making the process smoother and more convenient for users.

List of digital and electronic services liable for tax

Telecommunications
Media streaming and downloading
Online learning
Data storage and processing
E-books
Cloud-based software and services (SaaS, PaaS, IaaS)

Penalties

Non-compliance with obligations like registration, reporting, and tax payment for a foreign entity can result in fines ranging from 10,000 to 2,000,000 dinars.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly/Quarterly

Filing deadline

By the 15th of the month following the reporting period

E-invoicing requirements

Yes

Record keeping

Invoices, including both sales invoices you issue and purchase invoices you receive, such as e-invoices, must be maintained. Additionally, accounting records like the general ledger, subsidiary ledgers, cash book, bank statements, and other financial records relevant to VAT transactions are essential. Copies of filed VAT returns and proof of payment should also be kept. For cross-border transactions, import/export documents such as customs declarations and shipping documents are necessary. Lastly, any other documents that may impact your VAT obligations, including contracts, agreements, and correspondence with tax authorities, should be preserved. They must be kept for at least 10 years

How-To Guides: Serbia SaaS VAT

Step: 1 Threshold

Effective January 1, 2017, Serbia requires non-resident vendors of digital services to consumers (B2C) in
Serbia to register for and collect VAT, regardless of the sales amount.

 

No threshold for foreign providers of digital services (B2C). Registration is mandatory from the first taxable supply to a Serbian non-business customer.

Step: 2 Business Registration

Non-residents without a permanent establishment must appoint a tax proxy
The Tax Proxy submits the Form PR-1 to the Tax Administration on your behalf to obtain a Tax ID.

Step: 3 TIN/VAT Number

Obtain PIB (Poreski identifikacioni broj), it is an 9-digit number.

Step: 1 Standard VAT Rate

The standard VAT rate in Serbia is 20%.

Step: 2 VAT Formula

To calculate your tax amount, use the following formula:

Tax Amount = Net Price x 20%

Step: 3 Reverse Charge (B2B)

Foreign suppliers do not charge VAT on B2B sales to registered Serbian businesses. The local buyer accounts for the tax under the “Reverse Charge” mechanism.

Step: 1 Selling B2C

Charge 20% VAT on digital services sold to Serbian individuals (non-business).

Step: 2 Selling B2B

Do not charge VAT. Ensure the buyer is a registered business (check their PIB). The buyer is liable for the tax.

Step: 3 Invoice Requirements

• B2C: No strict e-invoicing requirement for foreign suppliers to consumers; a standard commercial invoice/receipt suffices.
• B2B (Registered Foreigners): If you are registered for VAT (via a proxy), you must issue invoices via the SEF (System of Electronic Invoices) for B2B transactions.
• Standard Fields: Supplier Name & PIB, Buyer Name & PIB, Date, Service Description, VAT Amount (or Reverse Charge note).

Step: 1 Filing Interval

Taxes should be filed monthly or quarterly (determined by turnover). Foreigners via proxy typically file monthly.

Step: 2 Filing Deadline

Taxes should be filed by the 15th day of the month following the tax period (e.g., February 15 for January return).

Step: 3 Submission

The Tax Proxy files the PP PDV return electronically via the ePorezi portal. Payments are made in RSD (Serbian Dinar) to the Tax Administration’s account.

Step: 4 Record Keeping

Records should be kept for a minimum of 10 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating VAT registration and fiscal representation in Serbia can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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