At the session of the National Assembly held on December 17, 2020, amendments to the Value Added Tax Law were adopted, which were published in the "Official Gazette of RS", No. 153/2020 of  December  21, 2020.

Amendments to the rules on secondary trade in goods and services

It is specified that the turnover of movable property with the transfer of the right of disposal on a construction object or economically divisible whole within a construction object is not considered secondary turnover.

It is specified that the secondary provision of services should not be considered the service of renting, ie leasing for use of a construction object or economically divisible unit within a construction object that is considered real estate in terms of the law governing real estate transactions.

Open-end investment funds and alternative investment funds that don’t have the status of a legal entity are considered taxpayers.

It is specified that open-end or alternative investment funds, without the status of a legal entity, are considered taxpayers for the purpose of taxation of turnover with value added tax (VAT).

Amendments to the rules on determining the tax debtor for the supply of goods and services in the field of construction

It is specified that the tax debtor is the recipient of goods and services in the field of construction, VAT payer, for turnover performed by VAT payers if the value of that turnover is higher than RSD 500,000 without VAT.

Clarification of the rules on determining the basis for calculating VAT for turnover with a fee

In addition to the already prescribed, it is envisaged that the base also does not contain the amounts claimed by the taxpayer for expenditures paid in the name and for the account of the recipient of goods and services, if the amounts are separately recorded.

Tax exemption for trade in goods that are in the process of inward processing

A new point was introduced which prescribes a tax exemption for the sale of goods that are in the process of inward processing. The condition for the realization of the subject tax exemption is that the turnover is performed to the VAT payer who would have the right to deduct the previous tax if he would procure the subject goods with the calculated VAT.

Tax exemptions without the right to deduct previous tax

It is introduced a tax exemption without the right to deduct the previous tax on the transfer of virtual currencies and the exchange of virtual currencies for funds in accordance with the law governing digital assets.

Amendment of the rules on determining the proportional tax deduction - occasional turnover

The turnover of goods and services for determining the percentage of proportional tax deduction does not include, in addition to the occasional turnover from Art. 25th paragraph 1 (turnover of money and capital), occasional turnover of shares, securities, postal securities, tax and other valid securities at their imprinted value in the Republic, except for ownership shares.

Special procedure for taxation of trade in second-hand goods

A complete amendment to Article 36 of the VAT Law was adopted, which changes the special procedure for taxing the difference in the sale of second-hand goods in three important points:

  • first, that a special taxation procedure may or may not be applied, ie that the taxpayer may choose for each transaction separately whether to apply a special or general taxation procedure,
  • secondly, that a special taxation procedure may be applied even when second-hand goods are imported and VAT paid on imports, and
  • thirdly, that there is no longer an obligation to compare the amount of VAT on the difference and the tax on the transfer of absolute rights, ie the payment of the tax on the transfer of absolute rights if the VAT on the difference is less than that tax.

Registration in the VAT system of a person who has not submitted a registration application within the prescribed period and deletion from the records

It was specified that the taxpayer who in the previous 12 months achieved a total turnover of more than 8 mil. RSD did not submit the registration application until the expiration of the first deadline for submission of the periodic VAT return, the registration application can be submitted even after that deadline, ie it will be submitted by the competent authority ex officio.

The taxpayer has the right to deduct the previous tax for the purchase of goods and services (including the advance), starting from the day of submitting the registration application.

The possibility has been introduced for the competent tax authority to submit the registration report ex officio, if the taxpayer does not submit it himself.

A taxpayer who has submitted a request for deletion from the VAT records from now on in the tax return instead of as VAT debt, shall state as a correction of the previous tax deduction the following:

  • adjustment of previous tax deduction for equipment, facilities and investments in facilities
  • the amount of previous tax for goods, except equipment, facilities and investments in facilities, and given advances.

Rules regarding the issuance of invoices in electronic form

It is specified that the taxpayer may issue an invoice in electronic form if there is an agreement of the recipient of the invoice to accept it in electronic form. It is specified that the invoice in paper form is issued in at least 2 copies, one of which is kept by the issuer of the invoice, and the others are given to the recipient of goods and services.

Amendments related to the cancellation and correction of the invoice in which the VAT was erroneously stated

It is specified that the VAT payer has the right to correct the amount of VAT even if he canceled the invoice in the case when the invoice should not have been issued (and not only if he issued a new invoice with corrected VAT amount, ie invoice in which VAT is not stated) if he has a statement from the recipient of the invoice that the VAT stated in the invoice being reversed has not been used as a previous tax.