Tax News

Paying VAT in Serbia as a foreign company? You may be able to get it back.

Under certain conditions, foreign entities can claim a VAT refund and improve their cash flow.
To qualify, the foreign entity should:

1. not perform taxable supplies in Serbia — except for certain cases, including:

• transportation of goods that are VAT-exempt under Serbian law;
• transportation of passengers subject to individual taxation;
• goods or services for which the VAT liability falls on the recipient (reverse charge);

2. be established in a country with VAT reciprocity with Serbia;

3. hold formally correct invoices with calculated VAT and proof of payment thereof; and

4. incur costs that would be VAT-deductible for a Serbian taxpayer.

Deadline: Refund claims must be filed by 30 June for VAT incurred in the previous calendar year.

Reciprocity: Serbia applies VAT reciprocity with many countries, including Germany, Austria, the Netherlands, Switzerland, the UK, and most EU and regional countries.

Process note: Refunds are submitted through a tax representative in Serbia, and the foreign entity should obtain a non-resident TIN for the claim.

Bottom line: VAT refunds are not automatic — but when handled correctly, they can reduce costs, improve liquidity, and optimize cross-border operations.

Don’t leave recoverable VAT behind!