SerbiaTax on Digital ServicesVAT on Digital Services in Serbia
VAT on Cross-Border Digital Services in Serbia
Foreign companies supplying digital services to Serbia are expected to register and charge VAT on sales of digital services to end consumers.
These electronically supplied services include services that are delivered over the Internet or an electronic network, the nature of which renders their supply essentially automated and involving minimal human intervention, and impossible to ensure in the absence of information technology.
Domestic VAT taxpayers receiving services from a foreign entity that does not have a tax representative in Serbia are considered tax debtors. In this role, they should calculate the VAT on the supply from the foreign person and include it in the System of Electronic Invoicing (SEF) VAT records.
Digital Services in Scope
The following electronically supplied services are included within the scope of digital services in the Republic of Serbia:
- Delivery of websites, storage, and maintenance of websites;
- Delivery of audio and video recordings, as well as delivery of games, including games of chance;
- Distance learning services.
Determining the Location of the Serbian Consumer
In instances where a recipient of electronically supplied services must be at the service provider's location to receive services, the location of the consumer is considered to be at this location where they have a physical presence.
In instances where a natural person (i.e. not a taxpayer) does not have to be at a specific location of the service provider to receive services, the recipient should be seen to receive services where:
- The place where the fixed network connection is located - for services provided via the fixed network;
- to the country that is identified through the national calling number of the SIM card used to receive services - for services provided via the mobile network;
- in the place where the decoder or similar device is located, and if that place is not known, in the place where the card reader necessary for viewing the content was sent to be used there, provided that no fixed network is used in that place;
- the place determined by the service provider based on at least two non-contradictory pieces of evidence
Evidence to be considered depending on the type of service are in particular:
- the address of the service recipient for receipt of invoices;
- internet protocol (IP) address of the device used by the service recipient or the place determined by geolocation;
- bank data (data on the place where the bank account used to pay for services is opened or the address of the recipient of the service for the receipt of the bill that was submitted to the bank);
- mobile country code (MCC) of the international user identification number (IMSI) located on the service recipient's SIM card;
- the point of connection of the service recipient's fixed network through which the service is provided;
- other information of importance for the transaction
VAT Registration for Foreign Companies
Foreign providers of ESS must register for VAT when providing services to a natural person and resident taxpayers in Serbia.
- Threshold: There is no threshold for foreign providers; they should register for VAT before conducting sales of digital services/products
- Fiscal representatives: Generally mandatory
VAT Returns and payment of taxes
VAT returns for non-residents
Once registered, businesses should collect and remit taxes to Serbian tax authorities. Generally, if the foreign business does not establish a branch/office in Serbia, the VAT-related obligations are performed by the nominated Tax Proxy.
Digital Reporting Requirements for Cross-Border Digital Services
For B2C transactions, there is no obligation to generate and report e-invoices to the E-faktura System. Taxpayers should respect the invoicing rules defined in the VAT Law and related legislation.
For B2B operations, the reporting/invoicing obligations should be processed by the Tax Proxy for foreign ESS suppliers if the foreign company has acquired the services of a Tax Agent.
