Serbia VAT Guide 2026

Overview — PDV System

Serbia's VAT system (PDV) was introduced in 2005 and is administered by Poreska uprava. The standard rate is 20% with a reduced rate of 10% for essential goods and services. VAT returns are filed monthly, by the 15th of the following month. Serbia is harmonising its VAT rules with the EU VAT Directive (2006/112/EC) as part of its EU accession process.

Standard Rate — 20%

The standard PDV rate of 20% applies to most goods and services in Serbia — general consumer goods, electronics, clothing, professional services, telecommunications, energy, and construction. This rate is comparable to other countries in the region (Croatia 25%, Romania 19%, Bulgaria 20%).

Reduced Rate — 10%

A reduced VAT rate of 10% applies to a range of essential goods and services:

• Basic foodstuffs: Bread, milk, meat, fruits, vegetables, and other staple food items
• Water supply: Drinking water distribution
• Accommodation: Hotel and tourist accommodation services
• Books and publications: Newspapers, magazines, textbooks, and other printed matter
• Medicines and medical equipment: Pharmaceuticals, medical devices, and aids for the disabled
• Utilities: Natural gas for household use, electricity, and heating energy
• Childcare products: Baby food, car seats, and children's car seats

Zero Rate — 0%

A 0% VAT rate applies to:

• Exports: Export of goods from Serbia
• International transport: Transport of goods and passengers to/from abroad
• Services related to exports: Certain services directly linked to export activities

VAT Registration and Compliance

Businesses with annual turnover exceeding the VAT registration threshold must register for PDV. The registration threshold is periodically adjusted. VAT returns are filed monthly by the 15th of the following month. Serbia operates a standard VAT deduction mechanism where input VAT on business purchases is recoverable against output VAT collected. Electronic filing via the Poreska uprava portal is mandatory for registered taxpayers.

FAQs

What is the VAT registration threshold in Serbia?

The threshold for mandatory VAT registration is based on annual turnover. Businesses below the threshold may register voluntarily. Specific threshold amounts are set by the Ministry of Finance and are adjusted periodically.

How are exports treated for VAT purposes?

Exports of goods from Serbia are subject to 0% VAT, allowing exporters to recover input VAT on related purchases. This makes Serbian exports VAT-free in the destination country (subject to local import VAT).

Is Serbia's VAT system aligned with the EU?

Serbia is progressively aligning its PDV system with EU VAT directives as part of its EU accession negotiations. The system already mirrors many EU concepts including taxable person, taxable transaction, input VAT deduction, and exemptions.

Disclaimer

This guide provides general information about Serbian VAT (PDV) for 2026. Rates and rules are subject to change. Always consult with a qualified Serbian tax advisor or Poreska uprava directly for advice specific to your situation. InvestmentKit does not provide tax advice.