The National Assembly of the Republic of Serbia adopted the Law on Electronic Invoicing (hereinafter: the Law) which entered into force on 7 May 2021.

The Law determines the scope of entities authorized to access and use the data available in the system of electronic invoices, as well as the conditions and manner under which such data can be accessed by certain entities holding public authorizations.
The Law regulates issuing, sending, receiving, processing, storing and content of electronic invoices and the following entities are obliged to issue electronic invoices:

– Private sector entities that pay VAT;
– Public sector entities; and
– VAT representatives of foreign entities

According to the Law the introduction of electronic invoices will be phased over years for both the private and public sectors. When it comes to application of the Law for private sector entities, the following timeframe has been set out:

– Obligation to issue electronic invoices to public sector entities as of 1 January 2022;
– Obligation of receipt and storage of electronic invoices issued according to the Law as of 1 July 2022;
– Obligation to issue electronic invoices to private sector entities and performance of other obligations in accordance with the Law as of 1 January 2023.

The electronic invoicing system is used for issuing, sending, receiving and storing e-invoices and is determined as an IT solution used for sending, receiving, recording, processing and storing e-invoices, which is managed by the central information intermediary which is a legal entity authorized by the competent authority and holds a licence to issue, process, receive and store electronic invoices.

There is no obligation to issue electronic invoices for the following:

– Retail trade in goods and services and advance received for such trade in accordance with the law governing fiscalization;
– Contractual obligation of the beneficiaries of funds from international framework agreements;
– Procurement, modernization and repair of weapons and military equipment, procurement of security-sensitive equipment, as well as any related procurement of goods, services or works.

Issuing and receiving of e-invoices is carried out in accordance with the Serbian Standard on Electronic Invoicing which is standard adopted by the national standards body of the Republic of Serbia.

The Law on Electronic Invoicing follows the best practices applied by the countries of the European Union and its aim is to improve the transparency, legal security and consistency of the legal framework that regulates the field of electronic invoicing.

The introduction of electronic invoices in the legislative framework, as a chosen option, is a step towards the harmonization of the regulations of the Republic of Serbia with the acquis communautaire, which is the obligation of the Republic of Serbia under the Stablization and Association Agreement concluded with EU.

For more information on the matters related to electronic invoicing, please contact us at office@vuliclaw.com.