Serbia Amends VAT Law: New Rules for Invoicing, Tax Base Changes, and Input VAT Deductions

• The Law on Amendments to the Value Added Tax Law was adopted on 3 December 2025 and published on 4 December 2025.
• Periodic invoices for utilities (water, electricity, gas, heating/cooling) are considered supplied on the last day of the invoiced period, which cannot exceed one year; effective from 1 January 2026.
• New rules require issuing a credit note for a decrease in tax base, with VAT adjustments made in the relevant tax period if conditions are met by the 10th day of the following month.
• Input VAT deduction is allowed if an internal invoice is prepared by the tax return deadline or by the 10th of the following month, and can be claimed within five years.
• Amendments clarify procedures and deadlines for correcting input VAT in case of tax base changes, and specify that recipients must prepare internal invoices for supplies, tax base changes, and advances.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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