Tax law and representation before the Serbian Tax Administration

Tax audits

An audit starts with an order served just before it begins. The taxpayer and its representative may attend the inspection of premises and are entitled to reasons for every act.

The taxpayer may file objections to the audit report within eight days of receiving it. This is the key moment, because new evidence can change the findings. The assessment is issued within 60 days of service of the report or the supplementary report.

• preparation and attendance at the audit
• objections to the report within 8 days
• evidence for disputed items
• follow-up until the assessment

Appeals and administrative disputes

An appeal against a tax assessment is filed within 15 days of receipt. It is lodged with the Tax Administration and decided by the second-instance body in the Ministry of Finance, which must decide within 60 days.

An appeal does not suspend enforcement, unless the taxpayer shows that paying before the decision becomes final would cause serious economic harm. A final decision can be challenged before the Administrative Court within 30 days of service.

VAT refunds

A Serbian VAT payer with more input VAT than output VAT can claim a refund, paid within 45 days, or 15 days for predominant exporters, often after a pre-refund audit. Late refunds carry interest.

Foreign companies that are not registered for VAT in Serbia can reclaim Serbian VAT under reciprocity: the claim must exceed EUR 200 and is filed by 30 June for the previous year, on form REF 1.

• VAT refunds and pre-refund audits
• VAT refunds for foreign companies (refakcija)
• VAT registration and tax representative for foreign sellers

Property, inheritance and capital gains

The transfer tax on resale property is 2.5% and is legally owed by the seller, with the buyer liable as guarantor. Capital gains on property are taxed at 15%, unless the seller owned the property for at least ten years or reinvests the proceeds in housing within 90 days.

Children, spouses and parents do not pay inheritance or gift tax. Second-order heirs pay 1.5% and others 2.5%.

Tax debt, instalments and limitation

Tax debt can be paid in instalments for up to 60 months if paying at once would be a disproportionate burden or cause serious economic harm. Larger debts require security. Late payment interest equals the National Bank of Serbia key rate plus 10 percentage points.

The right to assess and collect tax expires after five years, with an absolute limit of ten years.

How we handle it

1. Review of the act and deadlinesWe read the assessment, report or summons and tell you at once which deadline runs and what can be achieved.
2. EvidenceWith you and your accountant we collect contracts, invoices and bank records for each disputed item.
3. FilingWe prepare objections, the appeal, a refund claim, an exemption or an instalment request, in Serbian, with an English summary for you.
4. RepresentationWe follow the case, answer the authority's requests and apply for suspension of enforcement where there is ground.
5. Administrative CourtIf the second-instance decision is unlawful, we file a claim with the Administrative Court within 30 days.

What to send us

• the assessment, report or summons, with the envelope or proof of service
• tax returns for the period
• contracts, invoices and bank statements for disputed items
• correspondence with the Tax Administration
• for foreign companies: registry extract and VAT registration certificate
• power of attorney

Frequently asked questions