At the session held on December 3, 2025, the National Assembly of the Republic of Serbia adopted several amendments to tax laws:

Law on Amendments and Supplements to the Law on Personal Income Tax and Law on Amendments and Supplements to the Law on Mandatory Social Security Contributions,

Law on Amendments and Supplements to the Law on Value Added Tax,

Law on Amendments and Supplements to the Law on Tax Procedure and Tax Administration

The laws were published in the Official Gazette of the Republic of Serbia no. 109/2025 of December 4, 2025.

Law on Amendments and Supplements to the Law on Personal Income Tax and Law on Amendments and Supplements to the Law on Mandatory Social Security Contributions entered into force on December 12, 2025 and shall apply from January 1, 2026. We provide an overview of the most important changes below.

• The non-taxable amount used to determine the monthly salary tax base increases from the previous RSD 28,423 to RSD 34,221, effective from January 1, 2026.
• Tax relief for the employment of new persons will be calculated in relation to an extended period of time, lasting until December 31, 2026.
• The conditions for tax relief relating to the duration of registration at the National Employment Service before starting employment will not apply to unemployed persons under 30 years of age.
• The mandatory period during which the taxpayer may not dispose of alternative investment fund units, in order not to lose the previously obtained tax credit for the annual personal income tax, has been shortened from three to two calendar years.
• Methods for filing tax returns for certain types of income are clarified: 1) for income from self-employment – in electronic form via the Tax Administration portal; 2) for income from real estate – in electronic form via the Tax Administration portal or in written form directly or by mail to the organizational unit of the Tax Administration in the territory where the taxpayer has a residence or domicile; 3) for income from the provision of hospitality services – to the organizational unit of the Tax Administration in the territory in which the hospitality facility is located; 4) for capital gains and for other incomes on which tax is not paid by withholding – in electronic form via the Tax Administration portal or in written form – directly or by mail to the organizational unit of the Tax Administration in the territory where the taxpayer has a residence or domicile.

Law on Amendments and Supplements to the Law on Value Added Tax entered into force on December 12, 2025, and shall apply from April 1, 2026, unless other deadlines are prescribed. The aim of this law is to simplify the rules related to the change of the tax base and the calculated value added tax (hereinafter: VAT), the correction of the input tax deduction, the conditions for the input tax deduction and the cancellation of documents that affect the calculated VAT, that is, the right to deduct the input tax, as well as the determination of the tax period to which the aforementioned changes apply. Simpler rules should reduce errors by taxpayers when presenting data in certain documents and records, which are important for determining the tax liability based on VAT. Below we will list the most important novelties.

• The introduction of the preliminary tax return has been postponed for one year, specifically for the tax period of January 2027, that is, January – March 2027.
• If periodic invoices are issued for the supply of water, electricity, natural gas, and heating or cooling energy, the supply is considered to be carried out on the last day of the period for which the invoice is issued;
• The following persons are also considered tax debtors:
  • A person who states VAT in an internal invoice without having an obligation to do so,
  • The recipient of investment gold for the supply of investment gold by another VAT payer.
• In the event of a subsequent decrease in tax base for the supply of goods and services:
  • the VAT taxpayer who supplied the goods and services, and who is the tax debtor for that supply, is obliged to issue a document on the decrease;
  • a decrease of calculated VAT is made for a tax period if, as of the day preceding the day of filing the tax return for that tax period, and no later than the 10th day of the calendar month following that tax period, the prescribed conditions for VAT decrease have been fulfilled.
• The VAT taxpayer may exercise the right to deduct input tax for the tax period based on the internal invoice, if the internal invoice was drawn up by the day preceding the day of filing the tax return for that tax period, and no later than the 10th day of the calendar month following that tax period, regardless of whether the tax liability arose in the tax period for which the tax return is filed or in any of the previous tax periods and regardless of whether the internal account was drawn up on the day the tax liability arose or after that day.
• The correction of input tax deduction due to a change of the taxable base shall be made based on the document on the decrease, i.e., on the increase issued in accordance with the law governing VAT, and not based on the mere fact that the base has been decreased, i.e., increased.
• If the VAT payer cancels an invoice with stated VAT by the day preceding submission of tax return for the tax period, and no later than the 10th day of the calendar month following that tax period, it decreases the amount of tax base for that tax period, and it may decrease the amount of VAT for the same tax period if:
  • a new invoice has been issued (if there is an obligation to issue an invoice), and
  • they possess a confirmation from the recipient of the invoice, the VAT payer or the person entitled to a VAT refund, stating that VAT stated on the canceled invoice has not been used as input VAT, or that a request for a VAT refund has not been and will not be submitted.

Law on Amendments and Supplements to the Law on Tax Procedure and Tax Administration entered into force on December 12, 2025 and shall apply from January 1, 2026. We provide an overview of the most important changes below.

• If, during tax audits, it is determined that the employer does not fulfill the conditions for using tax incentives:
  • The Tax Administration, by decision, orders the employer to pay tax, as well as contributions for mandatory social security that were previously paid from the budget of the Republic,
  • without ordering to file an amended tax return, eliminating the identified irregularities.
• The deadline for completing the debt and overpayment write-off procedure on various grounds, which the Tax Administration implements ex officio, is being extended until December 31, 2026. The purpose of extending the deadline is to organize the accounting and other records of the Tax Administration, create additional technical and IT opportunities for efficient implementation of these write-offs, as well as providing reliable and accurate data.