Adoption of Amendments to the Law on sales taxes

The Parliament of the Republic of Serbia adopted a series of fiscal laws providing for numerous tax exemptions. By amendments to the Law on sales taxes, the sunflower, corn, oil beet, olive and soy cooking oil, vegetal or animal cooking grease, as well as sugar – in crystal, cubes or powder are exempted from sales taxes. According to Minister Djelic, the adoption of these new fiscal exemptions makes Serbia the European „consumer’s basket“ most tax-favoring country.

Besides the above-mentioned exemptions, relative to the standard of citizens, natural gas provided to individual consumers through the distribution network, as well as jet fuel for airplanes on international flights (both regular and charter flights) will also be exempted from sales taxes.

All tax exemptions quoted above take effect on November 27, 2002.

Computers, computer equipment and software, as well as teaching books and other teaching equipment or support, will also be exempted from sales taxes. This tax exemption will take effect only upon the decision on what should be considered teaching literature and support, as well as computer equipment and software. The decision on this regulation lies upon the competent culture, science, art and education ministers.

Sales taxes exemption also include products acquired through donations in accordance to international agreements signed between FRY or one of the member Republics and international financial organizations, agreements providing for the tax exemption for donation funds.

Crude oil is also tax-exempt, but only in the case when it is supplied to production enterprises as raw material (engine fuel), and in accordance to provisions relative to conditions provided for by the Law on sales taxes.

Regarding the services sales taxes, tax exemption is provided for the office or other purpose space renting services, provided by a physical person-citizen. This tax exemption takes effect on January 1, 2003.