LAW ON TAX PROCEDURE AND TAX ADMINISTRATION TO BE MODIFIED – MINISTRY OF FINANCE ANNOUNCES DRAFT LAW

The Ministry of Finance has published the Draft Law on Amendments to the Law on Tax Procedure and Tax Administration.

These changes, among other things, stipulate that the tax return on calculated contributions for compulsory social insurance for founders, ie members of a company (PP OD-O), will be submitted ex officio.

Following the Article 41a, a new Article 41b has been added to the LCPPA, which reads:
“Tax return on calculated contributions for compulsory social insurance for founders, i.e. members of a company, must be ex officio submitted by the Tax Administration instead of the taxpayer, in case the taxpayer fails to submit it within the period prescribed by the law which regulates the compulsory social security contributions.”

Suggestions and remarks can be submitted to the Sector for Fiscal System via e-mail to the address: [email protected] no later than September 14, 2021.

THE MINISTRY OF FINANCE HAS PUBLISHED TWO SPECIFICATIONS ABOUT THE IMPLEMENTATION AND DIRECT ACCESS TO ELECTRONIC INVOICES ON ITS WEBSITE

The Ministry of Finance has published two documents on their eFaktura website about the application of electronic invoices in the software of future users and its integration into the existing electronic invoice systems.

The specification of the adjusted application of the standard EN 16931-1 for electronic invoices in the local trade system of Republic of Serbia represents the specification of the use of the Core Invoice Usage Specification – CIUS in accordance with the standard SRPS EN 16931-1: 2019 / A2: 2020.

The framework of the application interface for direct access to the electronic invoice system provides a framework for access via the application interface.

The final technical specification of the application interface is an integral part of the implementation of the application interface and is maintained so that it is always in accordance with the appropriate version of the implemented system.

The website has also published an invitation for training in the use of the new electronic invoicing system for the public sector.

Start dates of application of these specifications in accordance with Article 24 of the Law on Electronic Invoicing (“Official Gazette of RS”, No. 44/2021) are:

ENTITYSTART DATErequirement
Public sector entities01.01.2022.to receive and keep an electronic invoice
01.01.2022.to issue electronic invoices to another public sector entity
01.01.2022.to electronically record the calculation of VAT

01.07.2022.
to issue electronic invoices to a private sector entity
Private sector entities01.01.2022.to issue electronic invoices to a public sector entity

01.07.2022.
to receive and keep an electronic invoice issued by a public sector entity, as well as electronic invoices issued by a private sector entity
01.01.2023.to issue and store electronic invoices in transactions between private sector entities
01.01.2023.to electronically record the calculation of VAT, except for transactions in which one of the parties is a public sector entity

If there are adequate technical conditions, the electronic invoicing system can be implemented before it becomes mandatory.

AVERAGE GROSS SALARIES AND WAGES CALCULATED FOR JUNE 2021

Average gross salaries and wages calculated for June 2021 amounted to 89.793 RSD, while average net salaries and wages amounted to 65.070 RSD.

Statistical Release, 25.08.2021.

NEW RULEBOOK ON VALUE ADDED TAX

The Minister of Finance has adopted the Rulebook on Value Added Tax, whose implementation will commence on July 1, 2021.

The Rulebook (in Serbian)

NEW RULEBOOK ON THE CHART OF ACCOUNTS

From the financial reports prepared for 2021, the Rulebook is applied by all legal entities and entrepreneurs who have the obligation to apply double-entry accounting, except for legal entities which, by definition from the Law, are classified as large (banks, etc.) and other legal entities. The Rulebook is also applied by other legal entities, which decide to evaluate positions in the financial statements in accordance with IAS / IFRS or IFRS for SMEs. Another legal entity, by its general act (in practice it is usually the Rulebook on Accounting and Accounting Policies) regulates the manner in which it will perform the recognition, valuation of presentation and disclosure of positions in the financial statements. Transferring from old accounts to new ones should be done no later than December 31, 2021. We recommend to do so as early as the beginning of 2021 – to provide data for compiling financial statements for 2021.

New Rulebook on the chart of accounts

A DECREE WAS ADOPTED ON ACTIVITIES IN WHICH THERE IS NO OBLIGATION TO RECORD RETAIL TRADE THROUGH AN ELECTRONIC FISCAL DEVICE

Government session held on April 1, 2021, the Decree on determining the activities where there is no obligation to record retail trade through an electronic fiscal device was passed. Starting from the technical and functional characteristics of electronic fiscal devices and the specifics of performing these activities, certain activities have been determined that are exempted from the obligation to record through an electronic fiscal device. The new model of fiscalization has expanded the circle of taxpayers and envisages more comprehensive fiscalization. The decree was published in the Official Gazette of the RS, number 32/2021 from April 2, 2021, and it is applicable from January 1, 2022. On the day of the beginning of the application of the Decree, the (old) Decree on determining the activity in the performance of which there is no obligation to record the retail trade through the fiscal cash register ceases to be valid.

Uredba link

ANNUAL PERSONAL INCOME TAX FOR INCOME GENERATED IN 2020

Individuals whose total personal net income in 2020 exceeds RSD 2.987.424 (non-taxable amount) are required to file a personal income tax return. The total personal net income earned in 2020 and the non-taxable amount are reported in the tax return, where the difference represents taxable income.

A personal income tax return (PPDG-2R form) may be submitted either electronically or in hardcopy. The hardcopy tax return is filed with the branch office of the Tax Administration located in the municipality of the taxpayer’s registered address of residence.

The deadline for filing annual personal income tax return for income generated in 2020 is Monday, 17 May 2021.

More details in our Tax Alert

New Decree on the Establishment of the Program of Direct Benefits

The new Decree on establishing the Program of direct benefits from the budget of the Republic of Serbia to economic entities in the private sector in order to mitigate the economic consequences caused by the epidemic of Covid-19 disease caused by the SARS-COV-2 virus entered into force on February 13th 2021.

The Regulation does not stipulate fiscal benefits that were provided for in the previous Regulation (deferral of payment of obligations based on taxes and contributions).

DIRECT BENEFITS

A basic overview of the provisions of the decree is listed below:

  • Payment of direct benefits will be made in April, May and June based on PPP-PD applications for February, March and April 2021. The first payment is expected to take place on April 8.
  • the amount of direct benefits per employee is half of the basic minimum net salary for January 2021 (RSD 15,450.12), with the amount of direct benefits being the same for all economic entities of all sizes
  • Funds received on the basis of direct payments can be used no later than July 30, 2021
  • acceptance of direct benefits is done by giving a statement on the ePorezi portal, especially for each payment of direct benefits, until the last day of the month preceding the month in which the payment of direct benefits is made. Statements will be made in accordance with the explanation that will be published on the website of the Tax Administration
  • economic entity that has bank accounts with several banks no later than March 25, 2021 submits data via the ePorezi portal on the bank where a dedicated account will be opened
  • an economic entity that applies for direct benefits is not entitled to pay dividends in the period from the date of entry into force of the Regulation until the end of 2021
  • If the legal entity is temporarily deprived of PIB on the last day of the month preceding the month in which the direct benefits are paid, it is not entitled to direct benefits
  • Loss of the right to use direct benefits occurs in case of reduction of the number of employees by more than 10%