5 Major Developments in Serbia E-invoicing Fiscalization
Serbia has been making significant progress in the implementation of e-invoicing fiscalization, which aims to improve tax compliance and streamline business processes. Here are five major developments in Serbia’s e-invoicing fiscalization:
1. Introduction of the Electronic Fiscal Device (EFD):
Serbia introduced the use of Electronic Fiscal Devices (EFD) in 2018 to ensure the accurate and timely reporting of sales transactions. These devices are connected to the Tax Administration’s central server, enabling real-time monitoring of sales and preventing tax evasion. The implementation of EFDs has been successful in increasing tax revenues and reducing the shadow economy.
2. Mandatory E-invoicing for Large Taxpayers:
In January 2020, Serbia made e-invoicing mandatory for large taxpayers. This requirement applies to businesses with an annual turnover exceeding RSD 8 million (approximately €68,000). Large taxpayers are now required to issue and receive e-invoices, which are directly transmitted to the Tax Administration’s system. This measure aims to enhance transparency, reduce administrative burdens, and improve tax compliance.
3. Implementation of the Central Invoice Registry:
To further strengthen the e-invoicing system, Serbia implemented the Central Invoice Registry (CIR) in January 2021. The CIR serves as a central repository for all e-invoices issued and received by taxpayers. It allows for easy access and verification of invoices by the Tax Administration, reducing the risk of fraud and ensuring the accuracy of reported transactions. The CIR also facilitates the exchange of invoices between taxpayers, promoting efficiency in business operations.
4. Expansion of E-invoicing Obligations:
Serbia plans to expand the e-invoicing obligations to include medium-sized and small businesses in the coming years. This phased approach aims to gradually transition all taxpayers to e-invoicing, promoting digitization and reducing the reliance on paper invoices. The expansion of e-invoicing obligations will further enhance tax compliance, simplify reporting processes, and contribute to the overall modernization of the tax system.
5. Integration with the European Union’s E-invoicing Framework:
Serbia is working towards aligning its e-invoicing system with the European Union’s e-invoicing framework. This integration will enable seamless cross-border transactions and facilitate trade between Serbia and EU member states. It will also ensure compatibility and interoperability with international e-invoicing standards, enhancing Serbia’s position in the global digital economy.
These major developments in Serbia’s e-invoicing fiscalization demonstrate the country’s commitment to modernizing its tax system and promoting digital transformation. The implementation of EFDs, mandatory e-invoicing for large taxpayers, the introduction of the Central Invoice Registry, and the planned expansion of e-invoicing obligations for medium-sized and small businesses are all steps towards achieving greater tax compliance and efficiency.
The benefits of e-invoicing fiscalization are numerous. It reduces the risk of tax evasion, improves the accuracy of reported transactions, and simplifies the reporting process for businesses. It also enhances transparency and trust between taxpayers and the Tax Administration, fostering a more conducive business environment.
As Serbia continues to make progress in its e-invoicing fiscalization efforts, it is important for businesses to adapt and embrace the digital transformation. By leveraging e-invoicing technologies, businesses can streamline their invoicing processes, reduce costs, and improve overall efficiency. It is also crucial for businesses to stay updated with the latest regulations and requirements to ensure compliance with the e-invoicing obligations.
In conclusion, Serbia’s e-invoicing fiscalization has witnessed significant advancements in recent years. The introduction of EFDs, mandatory e-invoicing for large taxpayers, the implementation of the Central Invoice Registry, and the planned expansion of e-invoicing obligations for medium-sized and small businesses all contribute to the country’s efforts in modernizing its tax system and fostering a digital economy. These developments are expected to bring about greater tax compliance, efficiency, and transparency in Serbia’s business landscape.
