Termination of validity of certain provisions set down in the Rulebook on Manner and Procedure of Exercising VAT Exemptions with Right of Deduction of Input VAT (“Official Gazette of the Republic of Serbia” no. 120/2012, 40/2015, 82/2015, 86/2015, 11/2016, 21/2017, 48/2018, 62/2018 and 44/2018 – other law)
Rulebook on Manner and Procedure of Exercising VAT Exemptions with Right of Deduction of Input VAT prescribes manner of exercising VAT exemptions for transport and other services related to export, transit or temporal import of goods. Since 1 October 2018 certain parts of the provisions set down in this Rulebook have ceased to be valid due to the entry into force of the Article 160 paragraph 41 of the Law on Amendments of Company Law (“Official Gazette of the Republic of Serbia”, no. 44/2018) and due to the inaction of the Rulebook on Amendments of the Rulebook on Manner and Procedure of Exercising VAT Exemptions with Right of Deduction of Input VAT(“Official Gazette of the Republic of Serbia”, no. 48/2018) which came into force on 1 July 2018.The relevant changes made exercising VAT exemptions a bit simpler, since the use of the seal by companies and entrepreneurs is not anymore necessary in the following circumstances.
Firstly, regarding the tax exemptions for transportation of goods and services carried out in accordance with the donations’ contracts concluded with the Republic of Serbia, there is no more an obligation of the responsible person of an implementing partner or sub-partner, the responsible person of the donation recipient, the end user or the foreign person or the responsible person of money transferor to, before obtaining the first certificate of tax exemption for donations, submit to the Central Tax Office a seal print. Additionally, there is no more an obligation that these certificates of tax exemption for donations include the seal of the persons authorized to issue them.
Secondly, regarding the tax exemptions for transportation of goods and services carried out in accordance with the credit or loan agreement concluded between the Republic of Serbia and international financial organizations or other state, as well as between a third party and an international financial organization or other state in which the Republic of Serbia appears as a guarantor, or a counter-guarantor, in the part financed by the monetary funds, the part of the provision according to which certificate of tax exemption for these goods and services issued by the authorized person from Central Tax Office must include a seal of the authorized person, ceased to be valid.
In the end, the Template provided in the Rulebook on Manner and Procedure of Exercising VAT Exemptions with Right of Deduction of Input VAT (“Official Gazette of the Republic of Serbia”, no. 120/12, 40/15, 82/15, 86/15, 11/16 and 21/17) that included the need for the use of seal by companies and entrepreneurs in their business as well ceased to be valid.
If you have any questions or need further information please contact Nataša Sarić, Associate at natasa.saric@zslaw.rs or any of your regular contacts at Živković Samardžić.