Since 2013, in Serbia there is a possibility of the so-called. contracting VAT accountingTransmission code constructionfacilities. Although the law has not changed, numerous opinions of the Ministry of Finance still point to dilemmas in practice.
In short: when both the seller and the buyer Payers of VAT, and the customer has full right to deduct the previous tax, VATs can explore — internal— without current payment. This also completely avoids the calculation and payment of the tax on the transfer of absolute rights (2.5%).
This option is especially useful when:
- is in question second or subsequent transfer of a newly built object
- a transferred object is built before January 1, 2005.
- the client uses the objects for activities with the right to deduct VAT (for example, rent or office space for companies)
Advantages of the seller:
- the obligation of correction in the previous État is avoidant
- it is possible to refund VAT on the cost of sales (notaries, agents...)
Risks for the buyer:
- if 10 years ago you have the property of deducting VAT (for example, change the activity or sell the object to a natural person), it is possible return part of the deducted VAT.
Outcome:Contracting VAT accounting can be fiscally neutral and efficient, but requires careful assessment.
If you are facing the traffic of a construction object and want everything to be in compliance with the law, our Numerix team is there to analyze and guide the entire process — from the assessment of conditions to the correct posting.
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