On 10 September 2012 the Government of the Republic of Serbia has adopted proposal for amendments of the VAT Law and has forwarded it for further adoption to the Parliament of Serbia
The previous amendments to the VAT Law (the Law) were introduced in 2007. It can be said that these proposed amendments are the most significant since the adoption of the Law.
With the latest changes the general VAT rate will increase from 18% to 20% as of 1 October 2012. The reduced VAT rate will remain unchanged and would amount to 8%.
Other amendments to the Law will be effective as of 1 January 2013, except for provisions related to compulsory VAT deregistration of taxpayers whose turnover is below RSD 2 million. This provision will cease to be effective as of the day when the Law becomes effective.