Application of the Law on Fiscalization (Official Gazette of RS no. 153/2020) (“the Law”), that we have discussed before, which has repealed Serbian Law on Fiscal Cash Registers (Official Gazette of RS no. 135/04 and 93/12) by entering into force on December 29, 2020, will start on January 1, 2022 (except for several provisions that have already started to apply, on the day of entry into force). The regulation concerned, along with the set of by-laws enacted for its implementation, introduces a completely new model of fiscalization, which – among other things – implies a wider circle of taxpayers who will be obliged to apply it, new rules regarding the characteristics of fiscal cash registers and fiscal receipts, as well as certain subsidies for the entities covered by fiscalization.
Which Entities are Covered by, and Which are Exempt from the Fiscalization Liability?
According to the Law, the subject of fiscalization is a turnover of goods and services in retail, and advance payment received for the retail, while the obligor of fiscalization is every taxpayer of the personal income tax (in terms of the law regulating personal income tax) and every taxpayer of the corporate profit tax (in terms of the law regulating corporate profit tax) performing retail. Therefore, the fiscalization obligor shall be liable to register each retail transaction through an electronic fiscal device, regardless of the manner of payment, including the advanced payments received for the future retail.
However, the Regulation on Establishment of Activities that are not subject to the Mandatory Registration of Retail through the Electronic Fiscal Device (Official Gazette of RS no. 32/2021) – in accordance with its title – stipulates the activities that are not subject to mandatory registration of retail and advanced payments received thereof through the electronic fiscal device. Those are:
- sale of own agricultural products on market stalls, and similar places and facilities by a natural person who is subject to the personal income tax (but not an entrepreneur);
- activity performed by fiscalization subjects who collect fees from natural persons for goods sold and services rendered by enacting invoices concerning consumption calculated by measuring instruments (heating, gas, telephone, electricity, water, etc.);
- activities in the following fields, branches and groups, according to the Regulation on Classification of Activities (Official Gazette of RS 54/2010): 49.31 Urban and suburban road transportation of passengers; 49.32 Taxi transportation; 52.21 Service activities in road transport; 53.10 Postal activities of public service; 61 Telecommunications; 64 Financial services, except insurance and pension funds; 65 Insurance, reinsurance and pension funds, except for compulsory social insurance; 66 Auxiliary activities in provision of financial services and insurance; 69.10 Legal activities, except for public notaries and enforcement officers; 75.00 Veterinary activities – primary health protection of animals in the field, activities from the Programme of Measures for Animal Health Protection, activities of disinfection and deratization in the facilities where animals are kept and bred and the activities aimed at prevention of outburst, spreading and suppression of contagious diseases among animals; 84.30 Compulsory social insurance; 85 Education, except for the activities from branch 85.5, i.e. Other education; 86 Health activities – health services provided from the compulsory health insurance funds; 87 Social protection with accommodation; 88 Social protection without accommodation; and 94.91 Activities of religious organisations;
- activities from the Law on Utility Services (Official Gazette of RS 88/11, 104/16 and 95/18), except for the management of cemeteries and burials; funeral activities and rendering services in open markets: rental of premises, stands, and spaces therein;
- activities from the Rulebook on Establishment of Activities that are Considered as Old and artisan crafts, i.e. Handicrafts, the Manner of their Certification and Keeping Special Records of Issued Certificates (Official Gazette of RS 56/12), except for the stonecutting; and
- certain activities in the following groups within the aforementioned Regulation on Classification of Activities: 47.99 Other retail outside shops, stands, and open markets, i.e. sale through traveling salespersons, i.e. street vendors of ice-cream, lottery, popcorn and press (colporteurs); and 96.09 Other unlisted personal service activities, i.e. activities of shoe-cleaners, carriers, and persons who charge car parking.
Electronic Fiscal Device, Procedure and Deadlines for Fiscalization
The new model of fiscalization implies the use of an electronic fiscal device, which does not need to be a fiscal cash register anymore, but can also include a computer, tablet, or mobile phone (providing that device meets prescribed criteria concerning its components and security), which will be used to issue a fiscal receipt with QR code. This code will enable the buyer of goods i.e. user of services to check whether the receipt was issued in accordance with regulations. Defiscalization of old fiscal devices will be done automatically i.e. by connecting new devices to the Tax Administration server.
Transfer to the new model, in addition to the purchase/possession of the appropriate electronic fiscal device, implies three main steps:
- registration of business units, i.e. sale points;
- registration to the taxpayers’ service, in order to obtain so-called security element; and
- connecting to the Tax Administration.
Starting from November 1, 2021, taxpayers will be able to make their transition to the new model, whereby the subject procedure is to be finished no later than April 30, 2022.
Subsidies Regarding the Costs of Transfer to the New Model
It was recently announced that, in the period from October 15, 2021, until January 31, 2022, taxpayers will be able to apply for subsidies of the Serbian Government, in order to reimburse the costs of their transition to the new model. The subsidies will be provided in the amount of EUR 100.00 per each point of sale and fiscal device (in RSD counter value), whereby the taxpayers who are not subject to VAT will receive 20% higher subsidy for fiscal devices (due to the fact they cannot use the incoming VAT).
Aim of the New Model
The new model of fiscalization implies the application of modern hardware and software solutions, aimed at improving the control over the trade of goods and services (i.e. monitoring of trade in real-time), as well as the collection of public revenues. As such, it represents one of the instruments that competent authorities of the Republic of Serbia will significantly rely on in the future in their fight against the informal economy.
This article is to be considered as exclusively informative, with no intention to provide legal advice. If you should need additional information, please contact us directly.
By Lara Maksimovic, Senior Associate, PR Legal