The Government of the Republic of Serbia has adopted a new Regulation on the Criteria for Determining What Constitutes the Predominant Supply of Goods Abroad for the Purposes of the Value Added Tax Law (Official Gazette of the Republic of Serbia, No. 96/2026; hereinafter: the “Regulation“). Although the Regulation may initially appear to constitute a technical adjustment to the existing secondary legislation, it has significant implications for the legal and tax position of exporters, particularly with regard to the exercise of their right to VAT refunds.
Significance and Benefits of Predominant Exporter Status:
- Pursuant to Article 52 of the Value Added Tax Law (hereinafter: the “VAT Law“), taxable persons who predominantly supply goods abroad are entitled to a VAT refund within a reduced statutory period of 15 days, instead of the generally applicable period of 45 days.
Criteria for Obtaining Predominant Exporter Status:
- A taxable person qualifies as a predominant exporter if, during the preceding calendar year, the value of goods exported: (i) exceeded 50% of the total value of supplies of goods and services; or (ii) amounted to at least EUR 10 million.
- These criteria are alternative rather than cumulative, meaning that satisfying either criterion is sufficient to qualify for the relevant status.
- The status of a predominant exporter may also be acquired during the current calendar year, provided that either of the prescribed criteria is met during the period commencing on 1 January and ending on the last day of the relevant tax period for which a VAT return is submitted. In such cases, compliance with the prescribed criteria is assessed separately for each tax period during the current calendar year.
Key Changes and Significance of the New Regulation:
- One of the principal changes concerns the method of establishing compliance with the prescribed criteria. Rather than relying on information contained in annual financial statements, the Regulation provides that the value of exports and total supplies is to be determined on the basis of VAT records maintained by the taxable person in accordance with the VAT Law.
- The Regulation further clarifies that the status of a predominant exporter acquired on the basis of data relating to the preceding calendar year applies throughout the current calendar year.
Taxable persons meeting the prescribed criteria are required to submit Form PID PDV to the Serbian Tax Administration together with the relevant VAT return. For taxable persons qualifying on the basis of the preceding calendar year’s data, Form PID PDV must be submitted together with the VAT return for January or, in the case of quarterly VAT filers, for the January–March tax period. Taxable persons who meet the prescribed criteria during the current calendar year must submit Form PID PDV together with the VAT return for the tax period in which the relevant criterion is satisfied.
The Regulation enters into force on 1 January 2027.
For additional information or consultations, the Tasić & Partners team is at your disposal.