Adapt to amendments to VAT Law

Ministry of Finance and Economy notified all tax payers in Serbia on Wednesday that they should adapt their business system to the new fiscal VAT calculation, pursuant to amendments to the Law on Value Added Tax that should come in force on 1 October 2012.

General rate of the value added tax on taxable turnover of goods and services will be increased from 18 to 20 percent.

- All VAT payers are invited to prepare for the new tax rate - the Ministry announced.

- Let us remind that the special rate of VAT will remain at 8 percent. The turnover limit for VAT will be raised from current 4 to 8 million dinars, thus making it possible for numerous small entrepreneurs to choose between VAT and lump sum taxation.

There are 110,420 tax payers in Serbia who are subject to VAT.