A reduced VAT rate of 10% applies to basic food, regular newspapers, medical supplies, publications, public transport services, utilities, etc.
Serbia applies various exemptions with a refund of tax paid at preceding stages for:
- Supplies of goods relating to aircrafts and ships used in international traffic.
Local small taxpayer is an entity that sells goods or services for an amount not exceeding 8,000,000.00 dinars in the previous 12 months. There is no prescribed threshold for foreign entities.
Registered taxpayers have the right to deduct their input VAT from VAT payable if the following conditions are met:
- The source materials are used for their own consumer purposes;
- The taxpayer has been issued an invoice according to the model established by tax legislation.
Excess of input VAT in a given tax period may be offset for tax repayment in the following tax periods, or the taxpayer may apply for a refund of such VAT.