Serbia – VAT Refund: Reciprocity System Adds Four EU Member States 

VAT refund procedure for foreign taxpayers is principally regulated by the VAT Law, precisely under the paragraphs of Article 53. The rules and requirements of Article 53 prescribe the conditions under which VAT refunds are possible for non-resident taxable persons. 

One of the elementary principles is reciprocity. Under the reciprocity principle, only the taxable persons established in jurisdictions with which Serbia has previously signed agreements in this regard could apply for VAT refund. (If other conditions apply) 

So, if the reciprocity principle isn’t applicable for the foreign taxable person, there is no need to move forward with the diligent review of other conditions that define the eligibility for VAT refund. When the reciprocity for VAT does not apply, the foreign taxpayer cannot be reimbursed for its business expenses.

List of Countries 

On the website of the Ministry of Finance, there is a publicly available list of countries with which Serbia has signed Agreements for VAT refunds. 

Last Expansion 

Since last August, Serbia has expanded the list of countries with which it has put in place eligibility for mutual VAT refund on the basis of the reciprocity principle. The list has been significantly expanded thereafter. Four EU Member States have been added to the list, specifically Bulgaria, Luxembourg, Sweden, and France. 

From the effective date of the agreements(all are different, so consult each specifically), taxable persons established in any of these four countries are eligible to claim VAT refund for their business expenses made in Serbia. 

Taxable persons that are established in one of the four countries that have lately been added to the list now have the opportunity to claim input tax credits. Local costs made in Serbia, for business expenses, such as business travel, different types of local services, are from the moment at which the Agreement came into effect, claimable under VAT Law. 

Serbian taxable persons from the entry into force of these bilateral agreements have a chance to claim input tax credits for their business expenses made in any of the newly added four countries.