Value Added Tax registration is one of the first major tax decisions facing businesses operating in Serbia. Whether you're a newly established subsidiary, a growing local company, or a foreign entity with Serbian customers, understanding when and how to register for VAT directly impacts your tax obligations and cash flow.

This guide explains everything you need to know about VAT registration in Serbia for 2025: mandatory thresholds, voluntary registration benefits, the registration process, electronic invoicing requirements, and penalties for non-compliance.

Mandatory vs. Voluntary Registration

Serbian VAT law provides two paths to registration — mandatory and voluntary. Understanding the difference helps you plan strategically.

Mandatory Registration

VAT registration becomes compulsory when your taxable turnover exceeds RSD 8,000,000 (approximately EUR 68,000) within any 12-month period. Once you cross this threshold, registration is not optional.

Key points about mandatory registration:

- The threshold applies to rolling 12-month periods, not calendar years. You must monitor turnover continuously.

- VAT obligations begin the day after you exceed the threshold regardless of when you actually submit registration paperwork.

- You must register by the deadline for filing the VAT return covering the month when you crossed the threshold.

- If you fail to register on time, the Tax Administration treats you as a VAT payer from the date you should have registered. You'll owe VAT from that date and may lose the right to deduct input VAT on expenses incurred before registration.

Voluntary Registration

Businesses below the RSD 8 million threshold can choose to register voluntarily. This requires:

- Filing the EPPDV registration form before reaching the mandatory threshold

- Selecting a start date for VAT activity

- Committing to remain in the VAT system for a minimum of two years

- During this two-year period, you cannot deregister. You must comply with all VAT obligations including issuing tax invoices, filing returns, and maintaining proper records.

Why Register Voluntarily?

Many businesses choose voluntary registration even when not legally required. Benefits include:

- Input VAT recovery: Registered businesses can reclaim VAT paid on purchases and expenses, improving cash flow.

- B2B credibility: VAT registration signals legitimacy to corporate clients who prefer working with registered suppliers.

- Cross-border simplicity: Registration streamlines import/export operations and transactions with EU businesses.

- Avoiding backdated obligations: Proactive registration prevents the complications of crossing the threshold unexpectedly.

- Government contracts: Many public sector tenders require VAT registration.

Who Must Register?

The registration obligation applies to any legal or natural person conducting taxable activities in Serbia with turnover exceeding the threshold. This includes:

- Serbian companies selling goods or services domestically

- Foreign companies with a taxable presence in Serbia

- Freelancers and consultants billing Serbian clients

- Businesses engaged in imports

Even without a physical office in Serbia, your activities could trigger registration requirements. Foreign entities selling to Serbian customers or providing services consumed in Serbia should assess their VAT position carefully.

The Registration Process

EPPDV Form

The EPPDV is Serbia's official VAT registration form. Submission occurs electronically through the Tax Administration portal. For newly established companies, it's possible to submit during initial company registration through the Business Registers Agency.

Required information includes:

- Company name and registration number

- Tax identification number (PIB)

- Expected annual turnover

- Proposed start date for VAT activity

- Details of tax representative (if applicable)

- Bank account information

Accuracy matters. The expected turnover figure should be realistic — significant discrepancies may attract scrutiny.

Registration Timeline

For voluntary registration: Submit the EPPDV form and select your preferred start date. Registration becomes effective from the chosen date.

For mandatory registration: You must register by the deadline for filing the periodic VAT return for the month you exceeded the threshold. If you crossed the limit in August, registration must occur by September 15.

Serbia VAT ID

Upon successful registration, the Tax Administration issues your Serbia VAT ID through the electronic portal. This number must appear on all invoices, VAT returns, and relevant correspondence.

You can verify any Serbian VAT number using the Tax Administration's online database — useful for checking the status of suppliers and customers.

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Electronic Invoicing: SEF Registration

VAT registration in Serbia now comes with an additional requirement: registration in the SEF (Sistem Elektronskih Faktura) platform. Electronic invoicing is mandatory for all VAT payers.

SEF Obligations

You must register on the SEF platform on the same day your VAT activity begins — not later.

Once registered, you must:

- Issue electronic invoices to all SEF-registered recipients

- Accept electronic invoices from SEF-registered suppliers

- Maintain records within the system

Consequences of Late SEF Registration

Failing to register on SEF promptly creates immediate problems:

- You cannot receive invoices from SEF-registered suppliers

- You may face fines and compliance issues

- Your business relationships with VAT-registered companies become complicated

The SEF requirement applies universally to VAT payers. There are no exemptions based on company size or transaction volume.

VAT Rates in Serbia

Once registered, you'll charge VAT at the applicable rates:

- Standard rate: 20% applies to most goods and services

- Reduced rate: 10% applies to specific categories including basic food products, medicines, newspapers, hotel accommodation, and public transport

- Zero rate: Applies to exports and certain international transactions

Understanding which rate applies to your goods or services is essential for correct invoicing and returns.

Filing Obligations

VAT-registered businesses must file periodic returns. The filing frequency depends on your turnover:

- Monthly filing: Required for most businesses, due by the 15th of the following month

- Quarterly filing: Available for smaller taxpayers meeting certain criteria

Returns must be submitted electronically through the Tax Administration portal. Payment of any VAT liability is due by the same deadline.

Maintaining Accurate Records

Proper record-keeping supports your VAT compliance:

- Retain all invoices (issued and received) for the statutory period

- Maintain documentation supporting input VAT deductions

- Keep records reconciled with your VAT returns

- Store evidence of any VAT exemptions claimed

The Tax Administration can audit VAT records for open tax periods, so organized documentation is essential.

Updating Your Registration Details

Any changes to your VAT registration information must be reported within 5 days. This includes:

- Changes to company address

- Changes to legal representatives

- Significant changes to expected turnover

- Changes to bank accounts

Use the same Tax Administration portal for updates as for initial registration. Failure to report changes promptly may result in penalties.

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Penalties for Non-Compliance

Serbian authorities take VAT compliance seriously. Penalties for registration failures and other violations can be substantial:

1. Late or missing registration:

- Legal entities: RSD 100,000 to RSD 2,000,000 (approximately EUR 850 to EUR 17,000)

- Entrepreneurs: RSD 50,000 to RSD 500,000 (approximately EUR 425 to EUR 4,250)

- Responsible individuals: RSD 10,000 to RSD 100,000 (approximately EUR 85 to EUR 850)

2. Beyond fines, late registration means:

- VAT liability from the date you should have registered

- Potential loss of input VAT deductions on pre-registration expenses

- Administrative complications and back-filing requirements

Common Mistakes to Avoid

Delayed registration: Waiting too long after crossing the threshold creates problems. Monitor your turnover continuously.

Missing SEF registration: VAT registration alone is insufficient. SEF enrollment must happen simultaneously.

Incorrect rate application: Applying the wrong VAT rate results in either underpayment (and penalties) or overcharging customers.

Poor record-keeping: Inadequate documentation means lost deductions and audit difficulties.

Failure to update information: Not reporting changes within 5 days triggers additional penalties.

Practical Example

Consider a consulting firm in Belgrade that starts 2024 with modest revenue. Business grows faster than expected, and by October, cumulative 12-month turnover reaches RSD 8.2 million.

What should happen:

- The firm must register for VAT by November 15 (the deadline for October's VAT return period)

- VAT obligations begin from the day after crossing the threshold

- SEF registration must occur on the same day

What happens if they don't register:

- The Tax Administration treats them as VAT payers from the threshold date anyway

- They owe VAT on all subsequent sales

- They may lose input VAT deductions on purchases made before formal registration

- They face penalties for late registration

Deregistration

If your turnover drops below the threshold and you want to leave the VAT system:

- Voluntary registrants must wait until their two-year commitment period ends

- You must apply for deregistration through the Tax Administration

- Deregistration is not automatic — you remain a VAT payer until formally removed

The Tax Administration will review your application and confirm whether deregistration is approved.

Getting VAT Registration Right

VAT registration is more than a compliance checkbox — it affects your pricing, cash flow, and business relationships. Key takeaways:

- Monitor your turnover continuously to avoid crossing the threshold unexpectedly.

- Consider voluntary registration if you work primarily with VAT-registered businesses.

- Register for SEF on the same day as VAT registration.

- File returns and pay VAT on time every month.

- Keep records organized for the full statutory period.

At Tax Advisor Serbia, we handle VAT registration for foreign companies and local businesses daily. From initial assessment through registration and ongoing compliance, we ensure your VAT obligations are met correctly from day one.

Need help with VAT registration in Serbia? Book a consultation to discuss your situation.

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