Understanding VAT systems in Southeast Europe is essential for companies expanding or operating across borders. Although Serbia and Croatia share historical roots, their Value Added Tax (VAT) regimes differ notably—largely due to Croatia's EU membership and Serbia's non-EU status. This article outlines the key differences in VAT rates, registration thresholds, filing rules, and import/export treatment in each country.
VAT in Serbia: Simpler Rates, More Customs Barriers
- Standard VAT rate: 20%
- Reduced rate: 10% (basic food, medicines, books, utilities, hotels)
- Zero rate: 0% (exports, select international transport)
- VAT registration threshold: approx. €68,300 in annual turnover
- Filing frequency: Monthly or quarterly (depending on business size)
- Submission deadline: 15th of the month via Serbia's tax portal (PU RS ePorezi)
- Imports: VAT is paid during customs clearance (base = goods value + duties + logistics), then claimed back by VAT-registered businesses as input VAT.
- Exports: Zero-rated if goods leave Serbia with documented customs clearance and foreign buyer.
VAT in Croatia: EU-Aligned but More Complex
- Standard VAT rate: 25%
- Reduced rates: 13% (food, accommodation, media); 5% (books, milk, medical supplies); 0% (solar panels under conditions)
- VAT registration threshold: €60,000 in annual turnover
- Filing frequency: Monthly or quarterly
- Submission deadline: 20th of the month via ePorezna portal
- Imports: Governed by EU customs rules; VAT on imports can be reclaimed as input VAT by registered taxpayers.
- Exports: 0% VAT rate for goods shipped outside the EU with documentation.
- Intra-EU supplies: Also zero-rated, subject to valid EU VAT numbers and VIES verification. Must be reported in the ZP Form and VAT return (PDV-O).
Eurofast's Take: Navigating Regional VAT with Precision
Both countries offer advantages and limitations. Serbia's lower VAT rates and straightforward structure may appeal to exporters and local SMEs. However, non-EU customs rules and complex reporting can pose hurdles when dealing with EU trade. Croatia benefits from EU harmonisation, making it easier to trade within Europe, despite higher VAT rates and broader compliance requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
