Does every new step in digitization have to be preceded by seven circles of hell? – The corporate sector warns of the short deadlines for adapting to the rulebooks on the VAT and e-invoicing

From September 1, amended rulebooks on the VAT and electronic invoicing are in effect, bringing numerous changes for taxpayers in Serbia. Key changes pertain to the application of the stipulations of the Law on Electronic Invoicing which introduce the obligation of registering the previous VAT in the System of Electronic Invoices (SEF). Aleksandar Vasic, a member of the Management Board of the Association of Tax Advisors of Serbia, explains for eKapija that both the technical changes and the new demands have caused worry among companies due to the short implementation deadline.

The biggest changes pertain to the beginning the implementation of the stipulations of the Law on Electronic Invoicing which envisage the obligation of registering the previous VAT in SEF.

– The rulebook and the user guide which regulate the new rules were adopted only in August, which leaves very little time for many companies to adapt their business software, so they will be forced to do much more manual work – points out Vasic.

In order to facilitate the switch, the state has announced that, in the initial period, there will be no penalties for potential errors in the records, but as our interviewee notes, it remains to be seen whether this will be enough for the corporate sector, which asks: “Does every new step in digitization have to be preceded by seven circles of hell?”

The new rules proscribed by the changed rulebooks apply from September 1, and the new records pertain to the tax periods which begin after August 31. That means, adds Vasic, that the monthly VAT taxpayers will run the new records from the taxation period September, whereas the three-month VAT taxpayers will run them from the final taxation period, October-December.

– The taxpayers which carry out a turnover which is free of VAT, if they need a bill certified by the Customs Administration in order to be freed from tax payment, have to get that certification by the 10th of the month for the previous taxation period – he says.

For companies which issued the so-called paper slips, the option of issuing only the final bill if the advance payment and the transaction was carried out in the same taxation period, is removed from September.

– As according to the previously changed rules for the users of SEF, the same rule applies to them, the mandatory issuing of an advance invoice and the final one – Vasic explains.

Another important change is that the invoice for the transaction of buildings is issued separately from other transactions.

– One invoice can list the transaction of one or more buildings, but the transaction of other goods or services – he says.

The state’s intention, eKapija’s interviewee adds, is to secure a preliminary tax return in SEF, but he believes that it is not entirely clear how this benefits the economy.

– Just filling out the tax return form is not of essential importance. It would be more important to simplify the records. On the other hand, if we showed a little optimism and faith in what the state is telling us, we could expect indirect benefits. The introduction of new records, they say, aims to increase the tax discipline and reduce the gap in the VAT collection – concludes Vasic.

I. Zikic

Udruženje poreskih savetnika Srbije Beograd

Association of Tax Advisors of Serbia

Aleksandar Vasić

Law on Electronic Invoicing

System of Electronic Invoices

VAT records

SEF

VAT taxpayers

eInvoices

eTaxes