VAT and Income Tax in Serbia
Value Added Tax (VAT) in Serbia is regulated by the VAT Act (Official Gazette RS 84/04). Personal income tax is governed by the Personal Income Tax Act (Official Gazette RS 24/01), and corporate income tax by the Corporate Income Tax Act (Official Gazette RS 25/01). The Serbian Tax Administration oversees and collects taxes.
VAT rates in Serbia
Serbia applies two main VAT rates: 20% (standard rate – most goods and services) and 10% (reduced rate – food, medicines, books, utilities, tourist accommodation). The zero rate (0%) applies to exports and certain services. The threshold for mandatory VAT registration is annual revenue of 8,000,000 RSD within 12 consecutive months. VAT on services received from abroad (reverse charge) is paid by the recipient in Serbia.
Personal income tax and corporate income tax
Personal income tax in Serbia is 10% for salaries and most income types. For annual income above certain thresholds, 15% applies. Dividends, interest and capital gains are taxed at 15%. Corporate income tax is 15%. Tax incentives are available for research and development (up to 200% deduction), investment in fixed assets and hiring certain categories of workers.
Digital economy and fiscalisation
Since 2017, Serbia applies VAT to digital services provided by foreign suppliers (Netflix, Google Ads, Facebook Ads) offering B2C services in Serbia. Foreign providers must register for VAT in Serbia or through a fiscal representative. Fiscalisation (since 2022) requires all VAT payers to use electronic fiscal devices for all consumer transactions.
Frequently Asked Questions
What is the VAT rate in Serbia and which categories get reduced rates?
The standard VAT rate in Serbia is 20%. The reduced rate of 10% applies to food (except luxury), medicines, books, textbooks, daily newspapers, utilities, hotel accommodation and certain services. The zero rate applies to the export of goods and services.
What is the VAT registration threshold in Serbia?
You are required to register for VAT if your total income over the previous 12 consecutive calendar months exceeds 8,000,000 RSD. Voluntary registration below the threshold is also permitted and entitles you to reclaim input VAT.
What is the capital gains tax rate in Serbia?
Capital gains (from the sale of property, shares, interests, etc.) are taxed at 15%. The taxable base is the difference between the sale price and the acquisition cost. Certain exemptions apply, e.g. for property owned for more than 10 years by the taxpayer.