Import Procedures

Serbia uses a standardised import/export documentation process (generally requiring a bill of lading, etc.). With the liberalisation of the trade regime and the reformation of trade/customs-related institutions, Serbia continues to synchronise its documentation with the European Union.

The Serbian Customs Tariff is harmonised annually with the EU Combined Nomenclature. In Serbia, several tariff regulations are binding:

• Decisions on Tariff Classification published in the Official Journal of the European Union;
• Decisions on Tariff Classification issued by the World Customs Organization (WCO);
• Binding Tariff Information issued by the Serbian Customs Administration, upon request, regarding the classification of certain goods, in case of ambiguity or uncertainty.

Official translations of EU and WCO decisions are published regularly in the Official Gazette of the Republic of Serbia.

Import licenses are required for narcotics (including psychotropic substances), medicines containing narcotics, precursors for the manufacture of narcotics, vitamins, blood products, microorganisms, human body parts, non-registered medicines and medical devices, endangered species of wild fauna and flora, substances depleting the ozone layer, radioactive materials, reactors and reactor parts, arms, military equipment and dual-use goods, asbestos, industrial explosives, hunting and sports arms and ammunition for such arms, precious metals, and specific agricultural products for veterinary purposes.  The majority of the above-mentioned goods are subject to import licenses in accordance with existing international conventions.

For more information, please visit the website of Serbian Customs.

Distribution market players

There are a number of foreign, both regional and international, mass retailers in the Serbian market. Foreign mass retailers hold two-thirds of the total retail market and shopping centres have become popular in Serbia. Nevertheless, the bulk of purchases are concentrated on fresh produce and in small amounts. The main places of purchase are the markets and convenience stores.
Small local shops make up a large proportion of the distribution sector. The food sector includes 20,000 to 30,000 points of sale. Prices are often lower than those of supermarkets. Open street markets are also very numerous across the country.
The main supermarket chains are:

• Ahold Delhaize: Maxi, Tempo, Shop & Go
• Schwarz: Lidl
• Metro: Metro Cash & Carry
• Aman: Aman and Aman Plus
• Agrokor: Idea, Idea Super, Roda, Velpro
• DIS: DIS and DIS Cash & Carry

Regarding non-food retail, it should be noted that shopping centres are still few. A significant development is expected in the upcoming years, along with the boom of hypermarkets. The ready-to-wear and accessories sectors are currently the most represented, but retail of leisure, beauty products and, especially, home and DIY products is expected to grow.

Consumption Taxes

Nature of the Tax

Value Added Tax (VAT) - Porez na dodatu vrednost (PDV)

Tax Rate

20%

Reduced Tax Rate

A reduced rate of 10% applies to basic foodstuffs and the supply of medicines and medical care devices (e.g., prostheses).
The export of goods, transport and other services directly related to exports, international air transport, are zero-rated with the right of deduction of the input VAT. properties (except for first-time transfer of ownership); land; supply of goods for which acquirer did not have the right to deduct input tax; rental of flats if used for housing; financial services; insurance services; postal services; religious services; printing and sale of publications; public broadcasting services (except those with commercial character) education; medical services; financial services; charity; culture and entertainment; organizing of gambling and lotteries services; etc.

Other Consumption Taxes

Imports are subject to VAT in the same way as national production (except in the free zones). Excise duties are levied on producers and importers of the following goods: oil derivatives; tobacco products and fuels for filling electronic cigarettes; alcoholic beverages; coffee and electricity, bioliquids and biofuels.

Corporate Taxes

Company Tax

15%

Capital Gains Taxation

Capital gains obtained by resident companies are included in the annual income tax return and subject to tax at 15%, whereas those obtained by non-resident entities are taxed at 20% (unless a lower rate is provided under a tax treaty). Non-residents should appoint a fiscal representative in Serbia who should submit a tax return within 30 days from the realisation of capital gain.
Gains can be offset with capital losses occurring in the same period, and capital losses can be carried forward for five years.

Main Allowable Deductions and Tax Credits

Depreciation of tangible and intangible assets is tax-deductible at rates ranging from 2.5% to 30%. Goodwill is not deductible.
Start-up fees are generally deductible. Interest charges that exceed the thin capitalisation limits and transfer pricing thresholds are not deductible.
Bad debts are tax-deductible if they are at least 60 days overdue.
Donations to charities and humanitarian aid to national and local authorities in urgent cases are deductible up to 5% of income.
Fines are not deductible while taxes that do not depend on the profitability of the company are deductible.
Expenses directly related to qualifying R&D activities performed in Serbia are eligible for a double deduction. The Serbian intellectual property box regime offers an exclusion from the corporate income tax base of 80% of qualified income received by a taxpayer for the use of registered copyrights, patents, or related rights (does not include income derived from the disposal of the rights).
Investments in newly established companies that perform innovative activities give the right to a tax credit equivalent to 30% of the investments made (capped at RSD 100 million).
Entertainment expenses are deductible up to 0.5% of income. Finally, membership fees to chambers of commerce and associations (excluding political parties) are deductible up to 0.1% of income.
Tax losses can be carried forward for up to five years. The carryback of losses is not permitted.

Other Corporate Taxes

A property tax is payable not only by homeowners but also by long-term tenants (one year or more) and urban land users (ten acres or more). The maximum rate is 0.4%.
A transfer tax is levied on all types of transfers (property, vehicles, intellectual property, etc.) at a rate of 2.5%.
Although there are no stamp duties, the competent authorities and/or notary may charge fees when certifying documents relating to property transfers.
Social security contributions payable by the employer amount to 16.65% of the gross salary (11.5% for pension and disability insurance and 5.15% for health insurance), limited to five average monthly salaries.

Other Domestic Resources

Tax Administration

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed

See the list of the Double Taxation Agreements

Withholding Taxes

Dividends: 0 (resident company)/20% (non-resident company)/15% individuals; Interest: 0 (resident company)/20% (non-resident company, 25% if resident in a tax heaven)/15% individuals; Royalties: 0 (resident company)/20% (non-resident company; individuals)/25% (company resident in a tax haven)