Sitemap

LeitnerLeitner

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.

More...

Jelena Knežević, Certified Auditor, Managing Director, Leitner Leitner Srbija

Thinking Ahead & Working Together Innovatively

LeitnerLeitner is one of the leading tax advisory and auditing firms in Central and Eastern Europe, which is increasingly recognised in Serbia due to...

Will Serbia feel the ramifications of the rupturing of global...

When Germany And China Sneeze…

The automotive sector in Serbia could become a litmus test for assessing whether the country will continue to be included in European production chains,...

NATIONAL DAY: 3 OCTOBER (Unity Day)

Embassy Of The Federal Republic Of Germany

H.E. Mr. Thomas SCHIEB Ambassador Extraordinary and Plenipotentiary Address: Neznanog junaka 1A, Belgrade Tel: +381 11 3064 300 E-mail: info@belg.diplo.de Website: www.belgrad.diplo.de

Angela Merkel

Chancellor’s Scientific Background Could Save Germany

Today, we face the global outbreak of a disease that has the potential to catalyze what the historian Eva Schlotheuber terms a “pandemic of...

News

Croatia’s Ruling Conservatives Win Parliamentary Election

The conservative Croatian Democratic Union (HDZ) party has consolidated its power in Croatia after winning 66 seats in the...

Biggest Portrait In The World Of Novak Djokovic

Architect and artist Andrej Josifovski, better known as the Pianist, made the largest portrait of Novak Djokovic in the...

Macron Appoints Jean Castex As New Prime Minister Of France

French President Emmanuel Macron on Friday appointed Jean Castex to replace Edouard Philippe as prime minister. French government resigned, just...

Bulgaria’s Varna Public Transport Opens 34.8 Mln Euro Tender For New E-buses

Bulgarian company Public Transport - Varna has launched a tender for contracts for the delivery of a total of...

Startup Ecosystem Of Belgrade And Novi Sad Worth 502 Million Dollars

The American organization Startup Genome has published a new edition of its annual report, which estimates that the startup...

Croatia’s Ruling Conservatives Win Parliamentary Election

The conservative Croatian Democratic Union (HDZ) party has consolidated its power in Croatia after winning 66 seats in the...

Biggest Portrait In The World Of Novak Djokovic

Architect and artist Andrej Josifovski, better known as the Pianist, made the largest portrait of Novak Djokovic in the...

Macron Appoints Jean Castex As New Prime Minister Of France

French President Emmanuel Macron on Friday appointed Jean Castex to replace Edouard Philippe as prime minister. French government resigned, just...

Startup Ecosystem Of Belgrade And Novi Sad Worth 502 Million Dollars

The American organization Startup Genome has published a new edition of its annual report, which estimates that the startup...

EIB Provides €30 Million To UniCredit Bank Serbia For Serbian SMEs

• The first impact finance loan for Serbian SMEs • This highly innovative EIB operation aims to support employment, sustainable...