Exporting goods from Serbia offers a significant VAT advantage — exports are exempt with full right to deduct input VAT. But this benefit comes with strict conditions. Miss the documentation deadline or lack proper proof, and your zero-rate export suddenly becomes a fully taxable supply.

This guide explains how the VAT export exemption works in practice: what qualifies as export, required proof, critical deadlines, and how to handle common complications.

What Qualifies as Export of Goods?

For VAT purposes, export means a Serbian VAT taxpayer dispatches goods that permanently leave Serbian territory. The goods physically exit the country — whether directly from your warehouse, a production facility, or a customs distribution center.

Unlike imports where VAT is paid at customs entry, exports are VAT-exempt provided all statutory conditions are met. This exemption includes the right to deduct input VAT on purchases related to those exports.

Conditions for the VAT Exemption

Four conditions must be satisfied to apply the export exemption:

- The supplier must be a registered Serbian VAT taxpayer.

- The goods must physically leave Serbian territory.

- The taxpayer must hold proof of export — typically the export customs declaration (JCI/SAD) with exit confirmation.

- Proof must be obtained by the end of the tax period following the dispatch of goods.

If any condition is missing, the exemption cannot apply. The supply is treated as taxable, and VAT must be charged and reported.

Proof of Export: The Critical Document

The primary proof is the export customs declaration (JCI/SAD) issued by the Customs Administration. Crucially, the declaration must contain exit confirmation — evidence that goods actually left Serbia.

Without exit confirmation, the exemption does not apply. It doesn't matter if you've issued an invoice or received payment. No exit confirmation means no exemption.

Electronic vs Paper Declarations

Most export declarations are filed electronically through the e-customs (NAP) system using a qualified electronic signature. The Customs Administration digitally endorses the document, and exit is recorded automatically with date, time, and customs office code. This electronic document has full legal effect and serves as valid proof for the exemption.

Where paper declarations are exceptionally filed, proof consists of the JCI/SAD copy bearing the customs office endorsement in box B — stamped and signed by the customs officer.

The Documentation Deadline

Timing is everything. Proof of export must be obtained by the end of the tax period following dispatch.

Example: If goods were dispatched on February 14 and customs recorded exit on March 10, proof was obtained on time (within the next tax period). The February supply qualifies for exemption.

But if exit is confirmed only in April, the February supply must initially be reported as taxable. You can apply the exemption retroactively by correcting your VAT return once proof arrives — but this creates administrative burden and cash flow complications.

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POPDV Reporting: Getting the Fields Right

Your VAT return (POPDV) has specific fields for export transactions:

- Field 1.1 — Export of goods, exempt with right to deduct. Use when proof is obtained within the deadline.

- Field 3.2 — Taxable supply. Use when proof is not obtained by the end of the following tax period.

- Field 3.6 — Subsequent corrections. Use to reduce VAT and transfer the supply to field 1.1 once proof arrives later.

When Proof Is Timely

If you obtain export proof within the prescribed deadline, no VAT is charged. Report the supply in field 1.1 and claim your input VAT deductions normally.

When Proof Is Late

If proof isn't available by the end of the next tax period, you must report the supply as taxable in field 3.2 and pay VAT on that amount.

When proof is finally obtained, correct the VAT liability using field 3.6 and transfer the supply to field 1.1. You'll recover the VAT paid, but the process creates unnecessary work and temporary cash flow impact.

Practical Example

Goods dispatched May 20, exit confirmation received July 15. Proof was late — the deadline was end of June.

Report the May supply as taxable in field 3.2 on your June return (or May return if monthly filer). Then in July, correct via field 3.6 and move to exports in field 1.1. The net VAT effect is zero, but you've filed corrections and temporarily paid VAT you shouldn't have owed.

Handling Advances Before Export

Advances create a common complication. If you receive payment before goods leave Serbia, the advance must be invoiced with VAT — the exemption doesn't apply until export actually occurs.

Example: Advance received August 2, goods exported September 25. Because proof didn't exist at end of August, the advance had to be taxed. After the September export declaration is obtained, correct the VAT — reduce liability and show the supply as exempt export.

This is why tracking dispatch dates and coordinating with customs timing matters. Where possible, aligning payment timing with export timing avoids unnecessary VAT charges and corrections.

Exchange Rate Considerations

When export proceeds are collected in foreign currency, the dinar base is calculated at the National Bank of Serbia middle exchange rate on the date goods exit Serbia.

For advances collected earlier, use the rate on the date the advance was received. For the remaining balance, use the rate on the exit date.

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Special Situations and Alternative Proofs

Simplified Procedures

Where export occurs without a standard export declaration, proof can be the Certificate of Performed Export (Form P-II) issued by the competent customs office. This certificate has the same evidentiary value as an export declaration with exit confirmation.

Express Courier and Postal Shipments

For shipments via post, DHL, FedEx and other express operators, proof of export is a customs certificate for such consignments. The certificate must contain at minimum: consignor, consignee, description and quantity of goods, value, and date and place of handover.

Free-of-Charge Deliveries and Donations

Exports without payment — samples, donations, promotional goods — can still be exempt if proof of export exists. They're reported separately in the return but retain the right to input VAT deduction.

Goods Destroyed During Transport

If exit is confirmed before goods are damaged or destroyed, no VAT is due. The exemption applies based on confirmed export, regardless of what happens afterward. Compensation received from carriers or insurers is not consideration for a taxable supply.

Goods Remaining in Serbia for Processing

If a foreign buyer purchases goods but they remain in Serbia (for example, for further processing), the exemption cannot apply until the goods physically leave. Only upon actual export with proper proof can the exemption be recorded.

Installation and Assembly Abroad

When goods are exported and installed or assembled at the foreign destination, the goods component is exempt as export. The installation or assembly work is treated as a service performed outside Serbia — also outside Serbian VAT scope.

Export from Customs Warehouse

Goods held in a customs warehouse that are subsequently exported qualify for exemption, provided there's an export declaration with exit confirmation. Transit through Serbia without release to free circulation doesn't trigger VAT obligations.

Intermediaries and Joint Exports

When export occurs through an intermediary, the exemption applies to whoever holds the proof of export. In joint export arrangements, the exemption belongs to the owner of goods at the time of export. Other participants in the chain invoice each other with VAT under normal domestic rules.

Compliance Checklist

Verify who is listed as exporter on the JCI/SAD — this determines who can claim the exemption.

Track dispatch dates and exit dates to monitor deadline compliance.

Archive electronic copies of declarations and P-II certificates for the statutory retention period.

Reconcile POPDV fields 1.1, 3.2, and 3.6 each period to ensure consistency.

Never apply the exemption without exit confirmation within the deadline.

How Tax Advisor Serbia Can Help

Export VAT compliance requires coordinating documentation flows, monitoring deadlines, and correctly handling exceptions. We help exporting companies by reviewing JCI/SAD and P-II documentation, aligning POPDV treatment across fields 1.1, 3.2, and 3.6, and establishing controls so exemptions are applied correctly and on time.

If you're exporting from Serbia and want to ensure your VAT treatment is correct, book a consultation to review your processes.

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