The possibility of changing the tax period for calculating VAT from the calendar quarter to the calendar month at the beginning of the 2020 year.
Depending on the amount of total turnover of the goods and services of the taxpayer, two tax periods are prescribed, the calendar month and the calendar quarter, for which VAT is calculated, file tax returns and pays VAT.
The calendar month is the tax period for the VAT payer if:
- total turnover in the previous 12 months exceeding RSD 50 million,
- the taxpayer calculates and pays VAT on the realized (collected) claim,
- commencement of VAT activities in the current calendar year, for the current and the following calendar year, and
- an approved change of tax period to calendar month, based on the filed request.
The calendar quarter is the tax period for all VAT taxpayers for whom the tax period is not a calendar month.
Changing the tax calendar quarter into a calendar month can be accomplished by submitting a request to the competent tax authority at the beginning of the calendar year, until January 15, 2020.
The prescribed deadline is preclusive, whereby the VAT taxpayer cannot submit the request after the expiry of the deadline (late filing of the request).
The VAT taxpayer may file a request for change of the tax period in a calendar month if he/she estimates that he/she has an interest and is more expedient to calculate VAT, file tax returns and pay VAT monthly. The request shall be submitted in writing, in paper form, without giving particular reasons.
A VAT taxpayer who has been granted a change in the tax period from a calendar quarter to a calendar month calculates VAT, submits tax returns and pays VAT for at least 12 months.
The law does not limit how long, but how the application of an approved tax period at least can last.
According to the provisions of Article 48, paragraph 7 of the Law, the request for change of tax period from quarterly to monthly also applies to VAT taxpayers who first started VAT activity in 2018, for which the tax period for 2018 and 2019 was a calendar month.