VAT in the construction sector Practical Application Of Reverse Charge

LeitnerLeitner is one of the most influential tax consulting and auditing companies in Central and Eastern Europe, which is becoming more and more recognised in Serbia due to its professionalism and the high quality of services provided to clients

The internal calculation of VAT was recently extended to the area of construction services, by abolishing the condition that the provider and the service recipient must have the status of contractor or investor. Now it is only necessary for the supply to be made between two VAT payers.

The proposed solution is one of the steps towards harmonisation with EU regulations in the tax domain. The Act on the classification of business activities determines which supplies are considered as services from the construction area, by listing business activity codes. In practice, this approach does not reflect the essence of construction services, since the activities in the Act are determined on a statistical basis.

One of the main issues is how to interpret the Act, mainly due to the fact that the Act does not have a numerus clausus approach. For instance, construction of green areas is not expressly listed as a construction service, but under the business code for green areas, it is specifically listed that this code doesn’t include construction, which represents a service from the F Sector of the classification. While interpreting the Act, not only the linguistic method should be used, but also logical and systematic methods.

Another dilemma is how to classify supplies conducted within primary supply, which is classified as supply in the construction area. The Ministry of Finance took the view that each supply should be considered separately and the tax debtor is determined for each supply. However, this is not applicable if the service supplier levies the cost of the services provided by the third party (auxiliary services) to the recipient.

These problems are still to be solved in the coming period.

Mr Sci. Dr Nemanja Popović, owner and director, Dr Popović Dental Clinic

Patients Are Looking For Safety And Quality

With a tradition of more than 35 years, Dr Popović Dental Practice  is the only one in Serbia with Temos accreditation and a recommendation...

Vadim Smirnov, Deputy CEO, NIS

NIS Relies On Foundations Of Sustainable Development

NIS has long since ceased to be just an oil company, as it has taken strides to enter into the production and trade of...

Aleksandra Stojanović, Investment Director And Chief Corporate Affairs Officer MK Group

MK Group Engaged In New Real Estate Projects

MK Group has brought completely new real estate concepts to the market during the past year. They showed just how much expertise in tourism...

Slobodan Vasilijević, Owner And Director At Slovas

Great Plans For Jubilee Year

Čačak-based company Slovas, a leader in trade in the stainless steel industry and the production of processing equipment, has spent a full three decades...

Serbia’s Foreign Trade Increased By 31.1%

Last year Serbia's foreign trade goods exchange amounted to 66.6 billion euros and was 31.1 per cent higher than...

Djokovic’s Historic Australian Open Win Extends ‘Big Titles’ Lead

Novak Djokovic claimed a record-tying 22nd Grand Slam title on Sunday when he won the Australian Open, extending his...

Celebration Of Republic Day Of India

The Embassy of India India in Belgrade celebrated the 74th Republic Day of India on 26 January 2023 to commemorate the coming into...

Spectatular Mileston In First Boeing 767 Conversion In Europe Marked At Ceremony In JAT Tehnika

Avia Prime Group, one of the leading organizations for aircraft maintenance in Europe, consisting of three eminent companies including...

Ministry Of Mining And Energy And USAID Forge Energy Partnership

The Ministry of Mining and Energy (MoME) and the United States Agency for International Development (USAID) signed a Memorandum...