Tax Exemption

Legal basis for Value Added Tax exemption

Procedure for Value Added Tax (VAT) exemption for projects financed by European Union through the Instrument for Pre-Accession Assistance – IPA is formed in relation to:

1. Law on Value Added Tax (“Official Gazette of the Republic of Serbia” No. 84/2004, 86/2004, 61/2005, 61/2007, 93/2012,108/2013, 68/2014,142/2014, 83/2015, 5/2016, 108/2016, 7/2017, 113/2017, 13/2018, 30/2018, 72/2019, 8/2020, 153/2020, 138/2022 and 94/2024);
2. Rulebook on Value Added Tax (“Official Gazette of the Republic of Serbia” No. 37/2021, 64/2021,127/2021,49/2022, 59/2022, 7/2023, 15/2023, 60/2023, 96/2023, 116/2023, 29/2024, 65/2024, 73/2024, 101/2024 и 107/2024) which entered into force on July 1st, 2021 instead of Rulebook on the Method and Procedure for Obtaining VAT Exemptions with the Right to Deduct the Previous Tax (Published in the “Official Gazette of the Republic of Serbia” No. 120/2012, 40/2015, 82/2015, 86/2015,11/2016, 21/2017, 44/2018, 48/2018, 62/2018, 104/2018, 16/2019, 80/2019 and159/2020);
3. Law on Ratification of Framework Agreement between the Government of the Republic of Serbia and the Commission of the European Communities on the Rules for Co-operation concerning EC-Financial Assistance to the Republic of Serbia in the Framework of the implementation of the Assistance under the Instrument for Pre – Accession Assistance (IPA), which was ratified by the National Assembly on 26 December 2007 (“Official Gazette of the Republic of Serbia” No.124/07 dated 26 December 2007);
4. Law on Ratification of Framework Agreement between the Republic of Serbia and the European Commission on the Arrangements for Implementation of Union Financial Assistance to the Republic of Serbia under the Instrument for Pre-Accession Assistance (IPA II), which was ratified by the National Assembly on 29 December 2014 (“Official Gazette of the Republic of Serbia” No.19 dated 29 December 2014);
5. Law on Ratification of Framework Agreement and the European Commission on the arrangements for implementation of Union financial assistance to the Republic of Serbia under the Instrument for Pre-Accession Assistance (IPA III), which was ratified by the National Assembly on 9 December 2022 (“Official Gazette of the Republic of Serbia” No. 6 dated 12 December 2022);
6. Financial Agreements signed between the Republic of Serbia and the European Commission for each program.