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New Rules in Respect of Determination of Telecommunication and Electronic Services for VAT Purposes

New Rules in Respect of Determination of Telecommunication and Electronic Services for VAT Purposes

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Ministry of Finance adopted the new Rulebook on 31 October 2019 related to the determination of Telecommunication and Electronic Services. The new rulebook will be applicable from 1 January 2020.

The latest amendments of the Law on VAT, and particularly of its Article 12 regulating the matter of relevant place of delivery of services, widened the elements that should be determined in more detail through bylaws. Therefore, the subject matter of the new rulebook is widened accordingly, in two directions:

  • First, in addition to the determination of services that represent electronic services, the new rulebook also determines the services that represent telecommunication services; and
  • Second, the new rulebook also covers the matter of determination of the location (registered seat/permanent establishment/residence) of the recipient of telecommunication and/or electronic services, being the relevant place of delivery of such services under the Law on VAT.

With respect to the matter of determination of the relevant location of the recipient of above indicated services, the new rulebook prescribes multiple sets and combinations of criteria, as well as the rules on how to apply these criteria,  in order to resolve the issues related to determination of the specific location in practice, having in mind the specific nature of delivery of telecommunication and electronic services. 

By  JPM Jankovic Popovic Mitic

JPM Jankovic Popovic Mitic at a Glance

The oldest full service commercial law firm in Serbia, founded in 1991, JPM with three decades of experience in assisting local and international businesses presence and growth not only in Serbia but throughout the SEE region.

We have accumulated a wealth of knowledge in every industrial and corporate sector, from energy to banking, transport, manufacturing and telecommunications, while remaining true to a pioneering spirit that has always drawn us to follow the latest trends and developments in providing of our services to clients. Today we use the latest legal tech available in serving our clients and are expanding our services to clients from growing industries such as renewable energy, IT and life sciences, by offering innovative solutions and a pro-active approach to broaching new grounds.

Our expertise, experience, and commitment to professional excellence mean we are routinely involved in landmark cases and transactions, while our high standing among clients and peers sees us ranked among the leading law firms by independent guides such as Chambers & Partners, Legal 500, and IFLR1000.

We are known for working closely with clients and treating their problems as our own. Our lawyers pride themselves on being team players, fast and available, specialised in terms of practice area and industry, but versatile and creative in their thinking. We believe our advice should be tailor-made and that even the thorniest issue has a legal solution.

Our membership of Lex Mundi (the world’s premiere network of independent law firms) and the TLA (a regional alliance of leading firms from Slovenia, Croatia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia) means we have close working relationships with first-rate firms throughout the region and around the world, enabling us to operate as the perfect hub for SEE and other multi-jurisdictional transactions.

Firm's website: http://jpm.rs/