The Ministry of Finance has published the draft Value Added Tax Amendment Act. Its first day of application will likely be 1st January 2021. Some of the major changes include:
- Whenever a construction-type service worth more than 500,000 RSD is supplied, the tax debtor is the recipient of goods (the reverse charge system is used to calculate VAT). If any such service within the construction industry is rendered which costs up to 500,000 RSD, the tax debt is attributed to the provider of goods (and the VAT is stated on the supplier’s invoice);
- A taxpayer engaged in the sale of second-hand goods has the right to decide for each individual supply whether it will be taxed in a special procedure. It is no longer compulsory to compare VAT with and absolute rights transfer tax in the case of selling second-hand goods;
- With the consent of the recipient invoices may be created and issued in an electronic form.
The amended version of the law comprises a series of other changes but we selected only those which we expect will affect the majority of taxpayers.
