Presentation of the Value added tax (VAT) Draft Law

Today, on the occasion of a press conference at the Government of the Republic of Serbia (03.15 PM), the Minister of finance and economy of the Republic of Serbia, Mr. Bozidar Djelic, the Deputy Finance Minister, Ms. Milica Bisic and the Head of the VAT Introduction Team, Ms. Slavica Stefanovic, will present together the Value Added Tax (VAT) Draft Law.

The value added tax (VAT) will be introduced in Serbia on January 1st 2004. The VAT represents the most popular manner for the taxation of the products and services business operations, and has been in application in more than 120 countries worldwide. The main characteristic of this tax obligation duty is that the tax shall be paid in each cycle of the business operation process, in such a way that it applies only to the value added by the specific participant to the whole business operation process – meaning the taxpayer. The main purpose of the value added tax is to include the largest possible number of goods and services, as well as to facilitate and simplify the process of tax duties defining and collection.

The VAT provides for a better protection against tax evasion, because it puts under control all the phases of production and trade, stimulates the exportations, provides for tax deductions, and this not only for the products, but also the services business operations. The introduction of the value added tax represents one of the conditions for our country to join the European Union.

The result of the members of the National Parliament debate on the Proposal of Law on the value added tax is expected by the beginning
of October.