Serbia VAT Reciprocity Expands to 21 Countries

May 3, 2026

Featured Partners

The Serbian Ministry of Finance, more specifically the Tax Administration, confirmed an update to the list of countries with which it has established VAT reciprocity arrangements for non-resident businesses. The list has been extended to include four more EU countries, totaling 21 countries with which Serbia now has VAT reciprocity.

Impact of VAT Reciprocity on Businesses

Serbia has expanded its VAT refund system for foreign businesses by adding France, Bulgaria, Luxembourg, and Sweden to the VAT reciprocity list. Given that Serbian law allows VAT refunds to foreign businesses only if their home countries offer the same treatment to Serbian companies, the addition of four new EU countries to the list means businesses from these countries can now reclaim Serbian VAT, assuming they meet all legal requirements.

From a practical point of view, this change is most relevant for businesses that incur VAT in Serbia through activities like travel, attending trade fairs, or purchasing local services. As a result of including these four countries in the list, businesses based in the newly included countries should review whether they have any Serbian VAT that was previously not reclaimed and consider filing refund claims. It is worth noting that VAT refund claims in Serbia are generally subject to a deadline, so affected businesses should act promptly.

In turn, Serbian businesses also benefit from these bilateral agreements between Serbia and four EU countries, as they now have access to similar refund opportunities in those countries, subject to each country's domestic VAT refund procedures.

Conclusion

The conclusion of the agreement regarding the VAT reciprocity reflects a gradual improvement in Serbia's approach to cross-border VAT, particularly with EU countries. By broadening the reciprocity network, the Serbian VAT system becomes more accessible to foreign businesses. This can help companies reduce costs and improve cash flow by reclaiming VAT that was previously not recoverable, a meaningful benefit for businesses operating across borders.

Source: Ministry of Finance of The Republic of Serbia

What is VAT reciprocity in Serbia?

VAT reciprocity in Serbia is a system where foreign businesses can only reclaim Serbian VAT if their home country offers the same VAT refund treatment to Serbian companies. It ensures mutual tax fairness between Serbia and partner countries.

Which countries were recently added to Serbia’s VAT reciprocity list?

The latest update added France, Bulgaria, Luxembourg, and Sweden, expanding Serbia’s VAT reciprocity network to a total of 21 countries.

Who is eligible to reclaim Serbian VAT under these rules?

Non-resident businesses based in countries with VAT reciprocity agreements can reclaim Serbian VAT, provided they meet all legal requirements set by Serbian tax authorities.

What types of activities can lead to reclaimable VAT in Serbia?

Businesses can typically reclaim VAT incurred through activities such as travel, attending trade fairs, or purchasing local services within Serbia.

What should affected businesses do after this VAT update?

Businesses from newly added countries should review any unreclaimed Serbian VAT and submit refund claims promptly, keeping in mind that VAT refund deadlines apply.

Do Serbian businesses benefit from these reciprocity agreements?

Yes, Serbian businesses also benefit because they gain access to VAT refund opportunities in France, Bulgaria, Luxembourg, and Sweden under each country’s local VAT refund rules.

Serbia

Europe

Tax Compliance

VAT Compliance and Reporting

VAT