Serbia VAT (PDV) Return Preparation Skill

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Skill Metadata

Field	Value
Jurisdiction	Republic of Serbia (Republika Srbija)
Jurisdiction Code	RS
Primary Legislation	Zakon o porezu na dodatu vrednost (Law on Value Added Tax), Official Gazette RS No. 84/2004, as amended
Supporting Legislation	Pravilnik o PDV (PDV Rulebook); Zakon o fiskalizaciji (Fiscalization Law); Zakon o elektronskom fakturisanju (E-Invoicing Law)
Tax Authority	Poreska uprava (Tax Administration), Ministry of Finance
Filing Portal	https://eporezi.purs.gov.rs (ePorezi portal)
Validated By	Deep research verification, April 2026
Validation Date	April 2026
Skill Version	1.0
Confidence Coverage	Tier 1: rate classification, return box assignment, reverse charge, e-invoicing rules. Tier 2: partial exemption, sector-specific rules, place of supply. Tier 3: group structures, special tax zones, complex international arrangements.

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Confidence Tier Definitions

Every rule in this skill is tagged with a confidence tier:

• [T1] Tier 1 -- Deterministic. Apply exactly as written. No reviewer judgement required.
• [T2] Tier 2 -- Reviewer Judgement Required. Flag the issue and present options. A qualified tax adviser must confirm before filing.
• [T3] Tier 3 -- Out of Scope / Escalate. Skill does not cover this. Do not guess. Escalate to qualified tax adviser and document the gap.

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Step 0: Client Onboarding Questions

Before classifying ANY transaction, you MUST know these facts about the client. Ask if not already known:

1. Entity name and PIB (Poreski identifikacioni broj) [T1] -- 9-digit tax identification number
2. PDV registration number [T1] -- Separate from PIB; format RS + 9 digits
3. Registration type [T1] -- Mandatory PDV taxpayer, voluntary PDV taxpayer, or non-registered (below threshold)
4. Filing period [T1] -- Monthly (if turnover > RSD 50,000,000) or quarterly (if turnover <= RSD 50,000,000)
5. Industry/sector [T2] -- Impacts specific exemption rules
6. Does the business make exempt supplies? [T2] -- If yes, partial attribution required (Article 30 of Zakon o PDV)
7. Is the client registered for e-Faktura? [T1] -- Mandatory for B2G since 1 January 2023; mandatory for B2B since 1 January 2024
8. Does the client use fiscal cash registers? [T1] -- Mandatory for retail (B2C) under Fiscalization Law
9. PDV credit carried forward from prior period [T1] -- Prethodni porez (pretplata)
10. Does the client deal with the public sector (B2G)? [T1] -- e-Faktura mandatory; treasury payment rules apply

If any of items 1-4 are unknown, STOP. Do not classify any transactions until confirmed.

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Step 1: Transaction Classification Rules

1a. Determine Transaction Type [T1]

• Sale (output PDV -- obracunati PDV) or Purchase (input PDV -- prethodni porez)
• Salaries (zarade), social contributions (doprinosi), tax payments, loan repayments, dividends = OUT OF SCOPE (never on PDV return)
• Legislation: Zakon o PDV, Article 3 (taxable transactions), Article 4 (supply of goods), Article 5 (supply of services)

1b. Determine Counterparty Location [T1]

• Domestic (Serbia): Supplier/customer is in Serbia
• Foreign: All countries outside Serbia (including EU member states)
• Note: Serbia is NOT an EU member state. Serbia is an EU candidate country. No intra-community supply rules apply.
• Kosovo: Treated as separate customs territory; imports from Kosovo treated as imports from abroad [T2]
• Legislation: Zakon o PDV, Article 11-12 (place of supply)

1c. Determine PDV Rate [T1]

Rate	Category	Legal Basis
20%	Standard rate (opsta stopa)	Zakon o PDV, Article 23(1)
10%	Reduced rate (posebna stopa)	Zakon o PDV, Article 23(2)
0%	Zero-rated (exports, international transport)	Zakon o PDV, Article 24

1d. Standard Rate (20%) Applies To [T1]

• All goods and services not specifically listed for the reduced rate
• Professional services (legal, accounting, consulting, IT)
• Telecommunications and electronic services
• Construction services
• Motor vehicles
• Electronics, furniture, luxury goods
• Restaurant and catering services
• Legislation: Zakon o PDV, Article 23(1)

1e. Reduced Rate (10%) Applies To [T1]

Category	Examples	Legal Basis
Basic foodstuffs	Bread, milk, flour, cooking oil, sugar, meat, fish, eggs, fruits, vegetables	Art 23(2), Point 1
Daily newspapers	Newspapers published at least 3 times per week	Art 23(2), Point 4
Medicines	Registered medicinal products	Art 23(2), Point 2
Medical devices	Registered medical devices on official list	Art 23(2), Point 2a
Textbooks and teaching materials	School and university textbooks	Art 23(2), Point 5
Hotel accommodation	First overnight stay (not food/beverages)	Art 23(2), Point 11
Public utilities	Heating, water supply, waste collection	Art 23(2), Points 7-9
Computers and components	Desktop, laptop, tablet computers	Art 23(2), Point 10
Baby food and diapers	Infant nutrition and hygiene products	Art 23(2), Point 1a
Agricultural inputs	Seeds, fertilizers, pesticides	Art 23(2), Point 3
Natural gas and firewood	Energy for household heating	Art 23(2), Point 13

1f. Zero-Rated Supplies [T1]

• Export of goods (Article 24(1), Point 1) -- goods must leave Serbia, confirmed by customs declaration
• International transport services (Article 24(1), Point 5)
• Supplies connected with international air and sea transport (Article 24(1), Point 4)
• Supplies to diplomatic and consular missions (Article 24(1), Point 6)
• Supplies financed by international donor agreements (Article 24(1), Point 7) [T2]
• Note: Zero-rated suppliers can claim full input PDV refund
• Legislation: Zakon o PDV, Article 24

1g. Exempt Supplies (Without Input PDV Recovery) [T1]

Category	Legal Basis
Financial services (banking, lending, securities)	Art 25(1), Point 1-5
Insurance and reinsurance	Art 25(1), Point 6
Residential rent (stambeni prostor)	Art 25(1), Point 10
Education services (accredited institutions)	Art 25(1), Point 14
Healthcare services (by licensed providers)	Art 25(1), Point 8
Social welfare services	Art 25(1), Point 9
Cultural and sporting events (by non-profits)	Art 25(1), Point 15-16
Postal services (universal postal service)	Art 25(1), Point 7
Land (not building land)	Art 25(1), Point 11
Used residential property	Art 25(1), Point 12

Note: Exempt suppliers CANNOT recover input PDV on related purchases (Article 30)

Legislation: Zakon o PDV, Article 25

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Step 2: PDV Return Structure (PPPDV Form)

The PDV return (Poreska prijava poreza na dodatu vrednost -- PPPDV) is filed electronically via ePorezi. The form structure is:

Section I: Output PDV (Obracunati PDV) [T1]

Field	Description	Notes
001	Taxable base at 20% (opsta stopa)	Net value of standard-rated supplies
002	PDV at 20%	= Field 001 x 20%
003	Taxable base at 10% (posebna stopa)	Net value of reduced-rated supplies
004	PDV at 10%	= Field 003 x 10%
005	Total output PDV	= Field 002 + Field 004

Section II: Reverse Charge PDV (Interni obracun) [T1]

Field	Description	Notes
006	Taxable base for internal calculation at 20%	Import of services / deemed supplies
007	PDV at 20% (internal)	= Field 006 x 20%
008	Taxable base for internal calculation at 10%	Import of services at reduced rate
009	PDV at 10% (internal)	= Field 008 x 10%
010	Total internal PDV	= Field 007 + Field 009

Section III: Total Output PDV [T1]

Field	Description	Notes
011	Total output PDV	= Field 005 + Field 010

Section IV: Input PDV (Prethodni porez) [T1]

Field	Description	Notes
101	Input PDV at 20% (domestic)	From invoices with 20% PDV
102	Input PDV at 10% (domestic)	From invoices with 10% PDV
103	Input PDV from internal calculation (reverse charge)	= Field 007 + Field 009
104	Input PDV on imports (from customs)	From customs declarations
105	Input PDV from agricultural farmers (pausalci)	8% compensation
106	Input PDV corrections (increase)	Adjustments increasing input PDV
107	Input PDV corrections (decrease)	Adjustments decreasing input PDV
108	Total input PDV	= Fields 101+102+103+104+105+106-107

Section V: PDV Payable or Credit [T1]

IF Field 011 > Field 108 THEN
    Field 109 (PDV payable / obaveza) = Field 011 - Field 108
    Field 110 = 0
ELSE
    Field 109 = 0
    Field 110 (PDV credit / pretplata) = Field 108 - Field 011
END

Section VI: Exempt and Zero-Rated Supplies [T1]

Field	Description	Notes
201	Exports (Article 24)	Zero-rated supply base
202	Exempt supplies without credit (Article 25)	Exempt supply base
203	Other non-taxable supplies	Informational

Legislation: Zakon o PDV, Article 50-51; PPPDV form instructions (Pravilnik)

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Step 3: Reverse Charge (Interni Obracun) Mechanics [T1]

3a. When Reverse Charge Applies [T1]

The Serbian recipient must self-assess PDV (interni obracun) when:

1. Services received from a foreign supplier with no fixed establishment in Serbia (Article 10(1), Point 3)
2. Goods imported (physical) -- PDV assessed at customs, not via reverse charge on the return
3. Specific domestic transactions where the recipient is designated as the PDV debtor (Article 10(1), Point 3 and 3a):
   • Construction services (recipient is the PDV debtor if both parties are PDV registered)
   • Supplies of waste and secondary raw materials
   • Supplies of certain metals (as designated by regulation)

3b. Reverse Charge -- Foreign Services [T1]

Step	Action	Field
1	Determine net value of service	Base amount
2	Apply appropriate rate (20% or 10%)	Determine rate
3	Report base in Field 006 or 008	Output side (interni obracun)
4	Report PDV in Field 007 or 009	Output PDV
5	Deduct same PDV in Field 103	Input side
6	Net effect = zero for fully taxable businesses	Check

Legislation: Zakon o PDV, Article 10(1), Point 3; Article 12

3c. Reverse Charge -- Domestic Construction [T2]

• When both supplier and recipient are PDV registered, and the supply is construction services
• The recipient (not the supplier) is the PDV debtor
• Supplier invoices without PDV, noting "PDV obracunava primalac" (PDV calculated by recipient)
• Recipient self-assesses in Fields 006/007 and deducts in Field 103
• Flag for reviewer: Confirm that the service qualifies as construction under the regulation
• Legislation: Zakon o PDV, Article 10(1), Point 3a

3d. Import of Goods [T1]

• PDV on imported physical goods is assessed and collected by Customs (Uprava Carina)
• Importer pays PDV at the border via customs declaration (carinska deklaracija)
• This import PDV is deductible as input PDV (Field 104)
• Do NOT self-assess on the PPPDV return -- Customs handles assessment
• Legislation: Zakon o PDV, Article 7 (import as taxable transaction), Article 28 (input PDV from imports)

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Step 4: E-Invoicing (e-Faktura) System

4a. Overview [T1]

Serbia has implemented a comprehensive mandatory e-invoicing system (Sistem elektronskih faktura -- SEF) managed by the Ministry of Finance.

Milestone	Requirement
1 January 2022	B2G: Public sector entities must receive e-invoices
1 January 2023	B2G: All suppliers to public sector must issue via SEF
1 January 2024	B2B: Mandatory issuance and receipt between PDV taxpayers
Ongoing	B2C: Fiscal cash register (e-fiskalizacija) applies

Legislation: Zakon o elektronskom fakturisanju (E-Invoicing Law), Official Gazette RS No. 44/2021

4b. SEF Requirements [T1]

Requirement	Details
Registration	All PDV taxpayers must register on SEF portal
Invoice format	XML-based, transmitted via SEF system
Mandatory fields	PIB, date, invoice number, line items, PDV breakdown
Acceptance	B2G invoices require buyer acceptance within 15 days
Rejection	If B2G buyer does not respond within 15 days, invoice is deemed accepted
Storage	Invoices stored on SEF for 10 years
CRF integration	Public sector invoices also registered with CRF (Central Registry of Invoices)

4c. Fiscal Cash Registers (e-Fiskalizacija) [T1]

Requirement	Details
Mandatory for	All retail (B2C) transactions
System	Electronic fiscal device (ESIR or V-PFR) connected to Tax Administration
Real-time reporting	Each transaction reported to Poreska uprava in real time
Receipt	Fiscal receipt with QR code issued to customer

Legislation: Zakon o fiskalizaciji, Official Gazette RS No. 153/2020

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Step 5: Registration Rules

5a. Mandatory Registration [T1]

Criterion	Threshold	Legal Basis
Domestic turnover (last 12 months)	RSD 8,000,000	Art 38(1)
Foreign entities with taxable supply in Serbia	No threshold (any amount)	Art 10a

• Once the RSD 8,000,000 threshold is exceeded, the taxpayer must apply for PDV registration within prescribed deadline
• PDV obligation begins from the day stated in the registration certificate
• Legislation: Zakon o PDV, Article 38

5b. Voluntary Registration [T1]

• Taxpayers below the RSD 8,000,000 threshold may voluntarily register
• Once registered voluntarily, the taxpayer must remain registered for at least 2 years
• Legislation: Zakon o PDV, Article 38a

5c. Non-Resident Registration [T1]

• Foreign entities performing taxable supplies in Serbia must either:
  1. Register for PDV through a fiscal representative (poreski punomoenik), OR
  2. Appoint a tax representative who assumes joint liability
• Legislation: Zakon o PDV, Article 10a

5d. Deregistration [T1]

• Taxpayer may apply for deregistration if turnover falls below RSD 8,000,000 for 12 consecutive months
• Must have been registered for at least 2 years (if voluntarily registered)
• Must adjust (reverse) input PDV on remaining assets at time of deregistration
• Legislation: Zakon o PDV, Article 39

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Step 6: Deductibility Rules

6a. General Deduction Right [T1]

• All input PDV on goods and services used for taxable business activities is deductible
• Input PDV must be documented by a proper PDV invoice (PDV racun), customs declaration, or e-Faktura
• Legislation: Zakon o PDV, Article 27-28

6b. Non-Deductible Input PDV (Article 29) [T1]

The following input PDV is BLOCKED and cannot be recovered:

Category	Legal Basis	Notes
Passenger vehicles and motorcycles	Art 29(1), Point 1	Exception: taxi, rental, driving school, vehicle dealers
Fuel for non-deductible vehicles	Art 29(1), Point 1	Follows vehicle deductibility
Entertainment and hospitality (reprezentacija)	Art 29(1), Point 2	50% deductible only [T2]
Personal consumption of employees	Art 29(1), Point 3	Gifts, personal items
Goods/services for exempt activities	Art 30	No input PDV on exempt supplies

6c. Partial Deduction -- Entertainment (Reprezentacija) [T2]

• 50% of input PDV on entertainment and hospitality is deductible
• Remaining 50% is non-deductible (becomes an expense for CIT purposes)
• Flag for reviewer: Confirm that the expense qualifies as reprezentacija under Article 29
• Legislation: Zakon o PDV, Article 29(1), Point 2

6d. Partial Exemption (Pro-Rata -- Srazmerni odbitak) [T2]

• If a business makes both taxable and exempt supplies, input PDV must be apportioned
• Pro-rata formula: Deductible % = (Taxable Supplies + Zero-Rated Supplies) / Total Supplies x 100
• Applied to input PDV that cannot be directly attributed to taxable or exempt activities
• Annual correction required
• Flag for reviewer: Pro-rata calculation must be confirmed by qualified tax adviser
• Legislation: Zakon o PDV, Article 30

6e. Capital Goods Adjustment [T2]

• Input PDV on capital goods (equipment >= 5 years useful life; real estate >= 10 years) is subject to adjustment if use changes
• If a capital good shifts from taxable to exempt use (or vice versa), input PDV must be corrected proportionally
• Flag for reviewer: Capital goods adjustment is complex; confirm with adviser
• Legislation: Zakon o PDV, Article 32

6f. Agricultural Flat-Rate Farmers (Pausalac) [T1]

• Farmers not registered for PDV are entitled to PDV compensation at 8% of their sales value
• The PDV-registered buyer pays the 8% compensation to the farmer and claims it as input PDV (Field 105)
• Farmer does not file PDV returns
• Legislation: Zakon o PDV, Article 34

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Step 7: Key Thresholds

Threshold	Value	Notes
Standard PDV rate	20%	Art 23(1)
Reduced PDV rate	10%	Art 23(2)
Mandatory registration	RSD 8,000,000 (last 12 months)	Art 38(1)
Monthly filing threshold	RSD 50,000,000 annual turnover	Below = quarterly filing
Voluntary registration lock-in	2 years minimum	Art 38a
Agricultural compensation rate	8%	Art 34
Entertainment deductibility	50% of input PDV	Art 29(1)(2)
Capital goods adjustment -- equipment	5 years	Art 32
Capital goods adjustment -- real estate	10 years	Art 32
e-Faktura B2B mandatory	Since 1 January 2024	E-Invoicing Law

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Step 8: Filing Deadlines

Return	Period	Filing Deadline	Payment Deadline
PPPDV (monthly filer)	Monthly	15th of the following month	15th of the following month
PPPDV (quarterly filer)	Quarterly	20th of the month following quarter end	20th of the month following quarter end
Annual PDV reconciliation	N/A	No separate annual return	N/A
e-Faktura registration	Ongoing	Must be registered before first B2B/B2G transaction	N/A

Filing method: Electronic only via ePorezi portal (paper filing not accepted).

Legislation: Zakon o PDV, Article 48, 50, 51

Late Filing and Payment Penalties [T1]

Violation	Penalty
Late filing	Fine: RSD 100,000 to RSD 2,000,000 for legal entities
Late payment	Interest: reference rate of NBS + 10% per annum (calculated daily)
Failure to issue e-Faktura	Fine: RSD 200,000 to RSD 2,000,000 for legal entities
Failure to register for PDV	Fine: RSD 100,000 to RSD 2,000,000 + mandatory registration
Non-use of fiscal cash register	Fine: RSD 300,000 to RSD 2,000,000 + temporary business closure

Legislation: Zakon o PDV, Article 60-61; Zakon o poreskom postupku i poreskoj administraciji

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Step 9: Place of Supply Rules

9a. Supply of Goods [T1]

Scenario	Place of Supply	Legal Basis
Goods not dispatched	Location of goods at time of supply	Art 11(1)
Goods dispatched/transported	Where dispatch begins	Art 11(1)(2)
Goods installed/assembled	Place of installation	Art 11(1)(3)
Import of goods	Serbia (at point of customs clearance)	Art 11(2)

9b. Supply of Services [T1]

Scenario	Place of Supply	Legal Basis
B2B (general rule)	Where the recipient is established	Art 12(4)
B2C (general rule)	Where the supplier is established	Art 12(5)
Real estate related	Where the property is located	Art 12(6)(1)
Transport of goods (B2B)	Where recipient is established	Art 12(4)
Cultural, sporting events	Where event takes place	Art 12(6)(4)
Restaurant/catering	Where services performed	Art 12(6)(5)
Short-term vehicle rental	Where vehicle made available	Art 12(6)(6)

Legislation: Zakon o PDV, Articles 11-12

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Step 10: Edge Case Registry

EC1 -- Software subscription from US provider (e.g., Microsoft 365) [T1]

Situation: Serbian company pays for cloud services from a US company, no PDV on invoice. Resolution: Reverse charge (interni obracun). Self-assess at 20% in Fields 006/007. Deduct in Field 103. Net effect = zero. Legislation: Zakon o PDV, Article 10(1)(3), Article 12(4)

EC2 -- Export of goods to EU country [T1]

Situation: Serbian manufacturer exports goods to Germany. Customs declaration obtained. Resolution: Zero-rated under Article 24(1)(1). Report in Field 201. No output PDV. Full input PDV recovery on related purchases. Legislation: Zakon o PDV, Article 24(1)(1)

EC3 -- Construction services between two PDV taxpayers [T2]

Situation: PDV-registered contractor provides construction services to PDV-registered developer. Resolution: Reverse charge applies. Contractor invoices without PDV, noting "PDV obracunava primalac". Developer self-assesses in Fields 006/007, deducts in Field 103. Flag for reviewer: confirm service qualifies as construction. Legislation: Zakon o PDV, Article 10(1)(3a)

EC4 -- Purchase of passenger car [T1]

Situation: Company purchases a sedan for employee use. Resolution: Input PDV is BLOCKED under Article 29(1)(1). PDV becomes part of the cost of the asset. No input PDV recovery. Legislation: Zakon o PDV, Article 29(1)(1)

EC5 -- Business entertainment (reprezentacija) [T2]

Situation: Company hosts a client dinner, PDV on invoice is RSD 5,000. Resolution: 50% of input PDV (RSD 2,500) is deductible in Field 101. Remaining 50% (RSD 2,500) is non-deductible (expense for CIT). Flag for reviewer: confirm qualification as reprezentacija. Legislation: Zakon o PDV, Article 29(1)(2)

EC6 -- Purchase from flat-rate farmer (pausalac) [T1]

Situation: Food processing company buys wheat from an unregistered farmer for RSD 1,000,000. Resolution: Company pays 8% compensation (RSD 80,000) to farmer. Company claims RSD 80,000 as input PDV in Field 105. Legislation: Zakon o PDV, Article 34

EC7 -- Import of goods from China [T1]

Situation: Serbian retailer imports electronics from China. Resolution: PDV assessed by Customs at 20%. Import PDV deductible in Field 104. Do NOT self-assess on PPPDV. Customs duties are separate. Legislation: Zakon o PDV, Article 7, Article 28

EC8 -- Residential property rental [T1]

Situation: Company rents out apartments to tenants. Resolution: Exempt under Article 25(1)(10). No output PDV. Input PDV on related costs is NOT deductible (Article 30). Legislation: Zakon o PDV, Article 25(1)(10)

EC9 -- Credit notes [T1]

Situation: Supplier issues a credit note reducing a previous invoice. Resolution: Adjust the original entry. If original was in Field 001/002 (output), reduce Fields 001/002 by credit note amount. If original was input, reduce relevant input field. Issue credit note via e-Faktura system. Legislation: Zakon o PDV, Article 21

EC10 -- Services to foreign client (B2B export of services) [T1]

Situation: Serbian IT company provides software development to a UK client. Resolution: Place of supply is where the recipient is established (UK) per Article 12(4). Supply is outside the scope of Serbian PDV. No PDV charged. Not reported as output but may be shown in Field 203 (informational). Input PDV on related costs is deductible. Legislation: Zakon o PDV, Article 12(4)

EC11 -- Supply of waste and secondary raw materials [T2]

Situation: Company sells scrap metal to another PDV-registered company. Resolution: Reverse charge applies. Seller invoices without PDV. Buyer self-assesses. Flag for reviewer: confirm material qualifies under the waste/scrap regulation. Legislation: Zakon o PDV, Article 10(1)(3a)

EC12 -- Free supply of goods (employee gifts) [T1]

Situation: Company distributes promotional gifts to employees. Resolution: Deemed taxable supply if input PDV was deducted on acquisition. Output PDV must be charged on the market value (emsal vrednost). If input PDV was not deducted, no output PDV. Legislation: Zakon o PDV, Article 4(4)

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Step 11: Reviewer Escalation Protocol

When a [T2] situation is identified, output:

REVIEWER FLAG
Tier: T2
Transaction: [description]
Issue: [what is ambiguous]
Options: [list the possible treatments]
Recommended: [which treatment is most likely correct and why]
Action Required: Qualified tax adviser must confirm before filing.

When a [T3] situation is identified, output:

ESCALATION REQUIRED
Tier: T3
Transaction: [description]
Issue: [what is outside skill scope]
Action Required: Do not classify. Refer to qualified tax adviser. Document gap.

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Step 12: Test Suite

Test 1 -- Standard domestic sale at 20%

Input: Serbian company sells IT consulting to a domestic client, net RSD 500,000, PDV RSD 100,000. Expected output: Field 001 = RSD 500,000. Field 002 = RSD 100,000. Output PDV reported.

Test 2 -- Reduced rate sale at 10%

Input: Bakery sells bread to a retailer, net RSD 200,000, PDV RSD 20,000. Expected output: Field 003 = RSD 200,000. Field 004 = RSD 20,000.

Test 3 -- Export of goods, zero-rated

Input: Serbian manufacturer exports furniture to Italy, net RSD 3,000,000. Customs declaration obtained. Expected output: Field 201 = RSD 3,000,000. No output PDV. Input PDV on related purchases refundable.

Test 4 -- Import of services, reverse charge

Input: Serbian company receives marketing services from a UK agency, EUR 10,000 (approx. RSD 1,170,000). No PDV on invoice. Expected output: Field 006 = RSD 1,170,000. Field 007 = RSD 234,000 (20%). Field 103 = RSD 234,000. Net effect = zero.

Test 5 -- Purchase of passenger car, blocked input

Input: Company purchases sedan, net RSD 5,000,000, PDV RSD 1,000,000. Expected output: Input PDV of RSD 1,000,000 is BLOCKED (Article 29). Asset capitalized at RSD 6,000,000. No input PDV recovery.

Test 6 -- Entertainment expense at 50%

Input: Company hosts client dinner, net RSD 30,000, PDV RSD 6,000. Expected output: Field 101 includes RSD 3,000 (50% of RSD 6,000). Remaining RSD 3,000 non-deductible.

Test 7 -- Purchase from flat-rate farmer

Input: Food processor buys milk from unregistered farmer, purchase price RSD 500,000. Expected output: Compensation paid to farmer: RSD 40,000 (8%). Field 105 = RSD 40,000.

Test 8 -- Construction reverse charge (domestic)

Input: PDV-registered contractor invoices PDV-registered developer for construction work, net RSD 10,000,000. No PDV on invoice. Expected output: Developer: Field 006 = RSD 10,000,000. Field 007 = RSD 2,000,000. Field 103 = RSD 2,000,000. Net = zero.

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PROHIBITIONS [T1]

• NEVER allow input PDV deduction on passenger vehicles (unless taxi/rental/dealer business)
• NEVER skip reverse charge (interni obracun) for services received from foreign suppliers
• NEVER treat Serbia as an EU member state -- no intra-community rules apply
• NEVER allow full input PDV deduction on entertainment -- maximum 50%
• NEVER issue paper invoices when e-Faktura is mandatory
• NEVER confuse zero-rated (Article 24, with input recovery) with exempt (Article 25, without input recovery)
• NEVER register import of goods via reverse charge -- Customs handles PDV on imports
• NEVER allow input PDV recovery on purchases used for exempt activities (Article 30)
• NEVER compute any number -- all arithmetic is handled by the deterministic engine, not the AI
• NEVER ignore the RSD 8,000,000 registration threshold -- monitor and flag when approaching

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Step 13: Invoice Requirements and Documentation

13a. PDV Invoice (PDV Racun) Requirements [T1]

Requirement	Details
Who must issue	All PDV-registered taxpayers for every taxable supply
Mandatory fields	Supplier name, PIB, PDV number; buyer name, PIB, PDV number; date of issue; sequential number; date of supply; description; quantity; unit price; taxable base; PDV rate; PDV amount; total
Issuance deadline	By the date of supply or receipt of advance payment
Format	e-Faktura (electronic) for all B2B and B2G transactions
Storage	10 years (electronic storage on SEF system)
Language	Serbian (translations may be attached for cross-border)

Legislation: Zakon o PDV, Article 42; Zakon o elektronskom fakturisanju

13b. Credit Note (Knjizno odobrenje) and Debit Note (Knjizno zaduzenje) [T1]

Document	Purpose	Requirements
Credit note	Reduce previously invoiced amount	Must reference original invoice number; issue via e-Faktura
Debit note	Increase previously invoiced amount	Must reference original invoice number; issue via e-Faktura
PDV effect	Both adjust output and input PDV in the period of issuance	Buyer and seller adjust simultaneously

13c. Internal Invoice (Interni Racun) [T1]

Requirement	Details
When issued	For reverse charge (interni obracun) transactions -- services from abroad
Who issues	The Serbian recipient (PDV payer)
Purpose	Self-assesses PDV on imported services
Fields	Same as PDV racun but supplier section shows foreign entity details
Registration	Must be registered in the e-Faktura system

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Step 14: Advance Payments and Tax Point Rules

14a. Tax Point (Promet) [T1]

Event	Tax Point	Legal Basis
Supply of goods	Date of delivery	Art 14(1)
Supply of services	Date of completion	Art 15(1)
Advance payment received	Date of receipt	Art 16(1)
Continuous supply	End of each billing period	Art 14(4)
Import of goods	Date of customs clearance	Art 7

14b. Advance Payments [T1]

• When an advance payment (avans) is received, PDV is triggered immediately
• Seller must issue a PDV invoice for the advance
• When goods/services are subsequently delivered, a final invoice is issued covering the remaining amount
• The advance PDV invoice and final invoice together equal the total transaction
• Legislation: Zakon o PDV, Article 16

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Step 15: Penalties and Interest Reference Table

Violation	Amount / Rate	Legal Basis
Late filing of PPPDV	Fine: RSD 100,000 -- RSD 2,000,000 (legal entity)	Art 60
Late filing (entrepreneur)	Fine: RSD 50,000 -- RSD 500,000	Art 60
Late filing (responsible person)	Fine: RSD 10,000 -- RSD 100,000	Art 60
Late payment	Interest: NBS reference rate + 10% p.a. (daily calculation)	Zakon o poreskom postupku
Failure to register for PDV	Fine: RSD 100,000 -- RSD 2,000,000 + mandatory registration	Art 60
Failure to issue e-Faktura	Fine: RSD 200,000 -- RSD 2,000,000 (legal entity)	E-Invoicing Law
Failure to use fiscal cash register	Fine: RSD 300,000 -- RSD 2,000,000 + temporary closure (up to 60 days)	Fiscalization Law
Issuing incorrect PDV invoice	Fine: RSD 100,000 -- RSD 2,000,000	Art 60
Tax evasion	Criminal prosecution under Criminal Code	Criminal Code Art 229
Failure to keep records	Fine: RSD 100,000 -- RSD 2,000,000	Art 60

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Step 16: Double Taxation Treaty Considerations [T3]

• Serbia has an extensive double taxation treaty network (over 60 treaties)
• DTTs do NOT affect PDV/VAT obligations -- they cover income tax only
• However, DTTs may affect withholding tax on payments that also have PDV implications
• ALWAYS escalate cross-border arrangements involving DTT analysis to a qualified tax adviser
• Legislation: Individual DTTs; Zakon o porezu na dobit pravnih lica (Corporate Income Tax Law)

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Step 17: Record-Keeping Requirements [T1]

Record Type	Retention Period	Legal Basis
PDV invoices (e-Faktura system)	10 years (stored on SEF)	E-Invoicing Law
Accounting ledgers	10 years	Zakon o racunovodstvu
Bank statements	10 years	Zakon o racunovodstvu
Contracts and agreements	10 years	Zakon o racunovodstvu
Customs declarations	5 years	Carinski zakon
PPPDV returns (filed electronically)	Maintained by Poreska uprava	Electronic filing
Fiscal cash register data	5 years	Zakon o fiskalizaciji
Internal invoices (interni racun)	10 years	E-Invoicing Law

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2026 Legislative Amendments (Effective 1 April 2026)

Serbia adopted a major package of amendments to the VAT Law on 3 December 2025 (Official Gazette RS No. 109/2025), largely effective from 1 April 2026:

Change	Details	Effective
Credit notes mandatory	Suppliers must issue credit notes for any subsequent decrease in tax base	1 April 2026
PDV correction timing	Reduction in calculated PDV allowed in the period the change occurred, subject to conditions by filing deadline	1 April 2026
Pre-filled VAT returns	Pre-completed PPPDV returns introduced via SEF e-invoicing system	1 January 2026
Internal invoice compliance	No input PDV deduction unless internal invoices comply with SEF rules	1 April 2026
E-invoicing alignment	Advances and tax base adjustments must follow SEF format requirements	1 April 2026

Note: VAT rates (20% standard, 10% reduced) are unchanged by these amendments. The changes are procedural/administrative.

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Contribution Notes

This skill covers Serbian PDV as of April 2026. Serbian tax law is subject to frequent amendment. All rates and thresholds should be verified against the most recent Official Gazette publications before filing. A qualified Serbian tax adviser (poreski savetnik) must validate all T1 rules before this skill is used in production.

A skill may not be published without sign-off from a qualified practitioner in the relevant jurisdiction.

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Disclaimer

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