As of the 1st of July 2021 a new unique VAT Rulebook is prescribed for legal entities. Article 197 thereof specifies that the total amount of tax basis and VAT and/or total amount of fee should be stated in Serbian dinars (RSD).
Before the introduction of this unique VAT Rulebook, this rule was limited to the fees that are allowed to be collected in a foreign currency under the regulations on foreign exchange operations (e.g. lease expenses).
However, after 1st July 2021 entities must enter a RSD amount for the tax basis and VAT in all cases. In other words, the rule does not discriminate between the supplies subject to VAT and those exempt from VAT according to Articles 24 and 25 of the Value Added Tax Act.
APPLICABLE EXCHANGE RATES
For purposes of VAT and as defined by Article 22 of the Value Added Tax Act:
- if the fee for a supply of goods or services is stated in a foreign currency, its value in RSD is calculated by using the middle exchange rate of the central bank and/or the agreed exchange rate as of the date of the chargeable event;
- if the tax basis for an import of goods is stated in a foreign currency, its value is restated into dinars by applying the customs rules that govern the determination of the fee for customs purposes applicable as of the date of the chargeable event.
Definition of a chargeable event is provided in Article 16 of this law.
