In accordance with the latest amendments to the VAT Law, the Ministry of Finance has adopted a Rulebook on the Manner and Procedure of Approving Tax Representation for the purpose of Value Added Tax (Rulebook). The Rulebook outlines the procedure and documentary requirements for VAT registration of foreign entities in Serbia.
The most recent amendments to the VAT Law introduced mandatory VAT registration of foreign entities which conduct VAT-able supply of goods and services in Serbia. Foreign entities are now required to appoint a tax representative in the country for this purpose.
According to the Rulebook, a foreign entity must obtain a non-resident tax identification number in Serbia as one of the prerequisites for VAT registration.
The Rulebook goes on to prescribe the form of request for the appointment of a tax representative and the required accompanying documentation.
A tax representative should file a request for VAT registration with the Central Office of Tax Administration, which will then confirm VAT registration within 15 days of the request.
The Tax Administration is required to establish a register of tax representatives, which must be published on its web page.
While the new Rulebook enables VAT registration of foreign entities, it remains to be seen how the VAT registration process will be implemented in practice and if the Tax Administration has the capacity to administer this system efficiently.