The Government of the Republic of Serbia adopted the Draft Law on Amendments to the Law on VAT, whose implementation is expected by 1 January 2020.
Some of the proposed changes include:
- Tax exemption with the right to deduct the previous tax for the sale of goods and services performed within the framework of the implementation of highway construction infrastructure projects;
- Arrangement of the tax treatment regarding the turnover of goods and services resulting from the transfer of value vouchers;
- Closer regulation of the place regarding the traffic of goods and services of consumption, food and drinks on ships, i.e. in planes and trains;
- More precise regulation regarding the place of the traffic of telecommunications, radio, and television broadcasting services and services provided electronically;
- Prescribing a more precise definition of turnover performed by a foreign legal entity in the Republic of Serbia, under which there is an obligation to register in the VAT system, for the sale of services directly related to the transfer, assignment and use of intellectual property rights, regardless of the provider of those services, as well as for traffic technical support services for the use of software, hardware and other equipment for a fixed period;
- More precise determination of the proportionate tax deduction, as well as the cancellation of the obligation to split the previous tax if the determined proportionate tax deduction is at least 98%;
- Specifying the rules on the possibility of correcting incorrectly calculated VAT in a larger amount;
- Prescribing tax exemption for the import of goods for special purposes, based on a decision of the Government of Republic of Serbia;
- Reduction in the value of goods that foreign travelers may carry in the luggage that they carry with them, which can result in VAT refunds.