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Instruction

INSTRUCTION

regarding implementation of Article 53 of the Law on Value Added Tax

 

Reimbursement of VAT to foreign taxpayer is regulated by the provisions of Article 53 of the Law on Value Added Tax ("Official Gazette of RS" no. 84/04, 86/04, 61/05, 61/07, 93/12, 108/13, 68 / 14, 142/14, 83/15), which reads:

Reimbursement of VAT shall be effected to a foreign taxpayer, at his request, for the turnover of movable goods and rendered sevrices in the Republic, provided that:

1) the VAT for the turnover of goods and services is stated in the invoice, in accordance with this Law, and that the invoice is paid;

2) The amount of VAT for which request for VAT reimbursement is applied exceeds 200 EUR in dinar equivalent at the average exchange rate of the National Bank of Serbia;

3) the conditions are met under which the VAT payer could create a right to deduct input tax on the goods and services in accordance with this Law;

4) he does not carry out the supply of goods and services in the Republic, i.e. that he  provides only the services of transport of goods which in accordance with Article 24 Paragraph 1 items. 1) 5) and 8) of this Law are exempt from tax, or that he carried out  only transport of passengers which, in accordance with Article 49, paragraph 7 of this Law is subject to individual taxation of transport.

Reimbursement of VAT in cases referred to in paragraph 1 of this Article shall be made under the condition of reciprocity.

and Article 4 of the Regulations on the procedure for exercising the right to VAT refund and the manner and procedure for reimbursement and refund of VAT ("Official Gazette of RS", no. 107/04, 65/05, 63/07, 107/12, 120/12, 74/13 and 66/14), which reads:

(1) Persons from Article 53 of the Law are entitled to a refund, in accordance with the Law, based on a request signed by the authorized person to be submitted to the Tax Administration in the Ministry of Finance (hereinafter: Head Office).

(2) VAT reimbursement shall be effected to the person referred to in Article 53 of the Law for turnover of movable goods and services rendered in the Republic, provided that:

1) the VAT for the turnover of goods and services is stated in the invoice, in accordance with this Law, and that the invoice is paid;

2) The amount of VAT for which request for VAT reimbursement is applied exceeds 200 EUR in dinar equivalent at the average exchange rate of the National Bank of Serbia;

3) the conditions are met under which the VAT payer could create a right to deduct input tax on the goods and services in accordance with this Law;

4) he does not carry out the supply of goods and services in the Republic, i.e. that he  provides only the services of transport of goods which in accordance with Article 24 Paragraph 1 items. 1) 5) and 8) of this Law are exempt from tax, or that he carried out  only transport of passengers which, in accordance with Article 49, paragraph 7 of this Law is subject to individual taxation of transport.

(3) Persons from paragraph 1 of this Article shall submit the request once a year and not later than June 30 of the current year, for goods and services purchased in the Republic of Serbia (hereinafter: Republic) in the previous calendar year.

(4) The request referred to in paragraph 1 of this Article shall be submitted on the Form REF 1 - Request of foreign taxpayers for reimbursement, which is printed with this Rulebook as its integral part.

(5) Together with the request from para 1 hereof, the following should also be submitted:

1) certificate of registration for VAT, or another form of consumption tax issued by the tax authority of the State in which the seat of foreign taxpayers is (original and certified translation);

2) originals and copies of paid invoices on purchased goods or services used in the Republic, under which VAT was calculated and paid.

(6) Head Office, after the verification of compliance with the conditions for reimbursement, shall decide on the request within 30 days from the date of submission of the request, and within 15 days from the date of submission of decision VAT shall be reimbursed.

(7) Originals of invoices, i.e. the documents referred to in paragraph 5 of this Article, certified by the Head Office, shall be submitted to the applicant together with the decision referred to in paragraph 6 of this Article.

(8) VAT reimbursement shall be made in the currency of the country of the applicant referred to in paragraph 1 of this Article in the amount that results from the conversion of the dinar amounts of VAT reimbursement at the selling rate of the National Bank of Serbia on the date of payment of VAT reimbursement, minus the cost of conversion.

 

Explanation for the submission of request by a foreign taxpayer

 

- Foreign taxpayer submits a request for reimbursement of value added tax in the form REF1, which is an integral part of this Instruction. With the form REF1 foreign taxpayer is obliged to submit:

- certificate of registration for VAT, or another form of consumption tax issued by the tax authority of the State in which the seat of foreign taxpayers is (original and certified translation);

- originals and copies of paid invoices on purchased goods or services used in the Republic, under which VAT was calculated and paid.;

*Invoices submitted for the VAT reimbursement must be correct, and the manner of issuance and content of invoices is regulated by Article 42 of the Law on Value Added Tax, which reads:

The taxpayer is obliged to issue invoice for every turnover of goods and services.

In case of rendering of time-limited or services without limit whose duration is longer than one year,  periodic invoice must be issued, and the period for which this invoice is issued cannot be longer than one year.

There is the obligation to issue an invoice from para. 1 and 2 of this Article if the taxpayer collects compensation or part of compensation before the supply of goods and services (advance payment), except that in the final account deducted are advance payments that include VAT.

Invoice shall especially include the following data:

1) name, address and TIN of the taxpayer – invoice issuer;

2) place and date of issue and invoice serial number;

3) name, address and Tin of the taxpayer – invoice recipient;

4) type and quantity of delivered goods or type and scope of services;

5) date of turnover of goods and sertvices and amount of advance payments;

6) amount of base;

7) tax rate applied;

8) amount of VAT that was calculated on the base;

9) note on teh stipulation of this law under which VAT was not calculated;

10) note that for teh turnover of goods and services collection system is applied.

The invoice will be issued in at least two copies, one of which will be retained by the issuer of account, while others are given to the recipient of goods and services.

VAT taxpayer does not issue an invoice for the turnover of goods and services for which the tax authority has brought decision on payment of VAT.

*In relation to transport services in cases of use of the public road for which tolls are charged, the content of receipts, issuing and content of invoice, we would like to inform all foreign taxpayers Ministry of Finance of the Republic of Serbia issued Explanation No. 430-01-327 / 2013-04 of 28.06.2013, so that slips and receipts are not invoices and are not correct documents, and that under the single slips and receipts reimbursement of VAT cannot be requested, but under the correct invoice in accordance with the Article 42 of the Law on Value Added Tax.

- Invoices for which the application for reimbursement is submitted shall be issued in the course of the entire calendar year, i.e from 01.01 to 31.12 of the calendar year and the request for reimbursement of VAT under these invoices is once a year upon expiration of the calendar year in the period from 01.01. to 30.06 of the following year;

- As evidence that the account is paid the applicant for reimbursement is obliged to submit a statement from the bank that the invoice was paid;

- Before submitting a request for reimbursement of value added tax foreign taxpayer is obliged to open the TIN in Serbia, in the Office for non-residents with address Belgrade, 16 Zeleni venac Str., phone + 11 381 2622-148, and all information for obtaining TIN in Serbia are available on the website of the Tax administration www.purs.gov.rs, link “nerezidenti” (non-residents)