VAT in Serbia for Foreign Companies (2026): Rates, Threshold & Refunds
VAT in Serbia is called PDV, and it works much like VAT elsewhere — but with Serbian thresholds, rates and rules, and one important caveat for foreigners: Serbia is not in the EU, so Serbian PDV is not EU VAT and there is no EU-wide VAT number. This guide explains the 2026 rates, the registration threshold, voluntary registration and refunds for foreign companies.
The rates: 20% standard, 10% reduced
Serbia has two main PDV rates:
- Standard rate: 20% — the default for most goods and services.
- Reduced rate: 10% — for a defined list (certain food staples, utilities, medicines, publications and similar).
You can quickly check how much PDV is contained in or added to a price with our VAT calculator.
The registration threshold: 8,000,000 RSD
Registration for PDV becomes mandatory once your taxable turnover exceeds 8,000,000 RSD over the previous 12 months. Below that level you are not required to register — but you can choose to.
| Below 8,000,000 RSD | Above 8,000,000 RSD | |
|---|---|---|
| Registration | Optional (voluntary) | Mandatory |
| Charge PDV on invoices | Only if registered | Yes |
| Reclaim input PDV | Only if registered | Yes |
| Filing obligations | Only if registered | Yes (periodic returns) |
Voluntary registration: when it helps
Registering voluntarily below the threshold makes sense when you have significant input PDV to reclaim — for example, you buy a lot of equipment or services with 20% PDV and want to recover it. It also makes you look established to larger Serbian clients who themselves reclaim PDV. The downside is the administrative burden of periodic returns. It is a cost-benefit decision; we will tell you honestly whether it pays off for your case.
How it works once you are registered
Once registered, you charge PDV on your taxable sales (output PDV), deduct the PDV you paid on business purchases (input PDV), and remit the difference to the Poreska uprava (Tax Administration) through periodic returns. If your input PDV exceeds your output PDV in a period, you are in a refund position.
Quick example
A registered company sells services for 1,000,000 RSD + 20% PDV (200,000 RSD output PDV) and paid 60,000 RSD of input PDV on its purchases that period. It remits 200,000 − 60,000 = 140,000 RSD to the tax authority.
VAT refunds
If your input PDV exceeds your output PDV — common for exporters and capital-heavy startups — you can be in a refund position. Serbia provides for refunding the excess input PDV through the return process; timing and documentation requirements apply, so keep clean invoices. Exporting goods and certain services can be zero-rated, which often pushes exporters into a steady refund position.
Foreign companies: the key caveats
- Serbian PDV is not EU VAT. There is no EU VAT number and no EU one-stop-shop. Serbia is non-EU.
- A non-resident company supplying taxable goods/services in Serbia may have Serbian PDV obligations and, in some cases, must appoint a tax representative. Whether you have a Serbian PDV obligation depends on what and where you supply — get it checked rather than assumed.
- Exports of goods and many services are treated favourably (often zero-rated), but the rules are specific — confirm your exact case.
For the wider tax picture see our Serbia tax guide for foreigners.
FAQ
What is the VAT rate in Serbia? 20% standard and 10% reduced. The reduced rate applies to a defined list of goods and services.
When do I have to register for VAT? When taxable turnover exceeds 8,000,000 RSD over the previous 12 months. You may register voluntarily before that.
Can a foreign company reclaim Serbian VAT? A registered taxpayer reclaims input PDV through its returns. Non-residents may have specific obligations and could need a tax representative — confirm your situation.
Is Serbian VAT the same as EU VAT? No. Serbia is non-EU; Serbian PDV is a separate national system with no EU VAT number.
Not sure whether to register? See our accounting services in Serbia, run the numbers with the VAT calculator, or contact us for an honest, orientational view.