News related to VAT refund for foreign travellers (TAX FREE)

As of October 15, 2019, the total value of goods, including VAT, on the basis of which purchases in the Republic of Serbia performed by passengers – natural persons, who do not reside, or are in transit in the Republic of Serbia, may obtain a VAT refund, has been reduced from 100 euros (in RSD equivalent as per the middle exchange rate of the National Bank of Serbia) to 6,000 dinars.

In order to exercise this right, other conditions must be fulfilled, namely that:

– these are goods which passengers are transporting abroad, in their personal luggage, for non-commercial purposes;

– the goods are shipped before the expiry of three calendar months after the expiry of the calendar month in which the goods were traded;

– the procedure ensuring the exercise of the said right has been conducted in accordance with regulations.

In order to simplify the procedure of VAT refund to passengers, the Minister of Finance adopted the Rulebook on Amendments to the Rulebook on the Method and Procedure for Obtaining VAT Tax Exemptions with the Right to Deduction of Previous Tax, published in the Official Gazette of the Republic of Serbia, No. 80/19, dated November 8, 2019, and effective as of November 16, 2019.

The simplification of the above-mentioned procedure is primarily related to the introduction of the electronic form of the ZPPPDV Form – Request of passengers for VAT refund, as well as to the new form of the ZPPPDV Form. Namely, in addition to the ZPPPDV Form in paper form, as of November 16, 2019, it is also possible to use an electronic form to exercise the right to VAT refund. Form ZPPPDV (regardless of its form) is issued by the seller, at the request of the passenger, whereby ZPPPDV in electronic form is issued only by the seller, who has a contract with the operator.

The VAT refund request shall be submitted to the seller in a paper form or to the operator in an electronic form, noting that the deadline for filing the request has been extended to 12 months from the date of dispatch of the goods abroad.

If the VAT refund request is submitted to the seller, the passenger shall submit to the seller the invoice, that is, the invoices, signed and stamped by the customs authority, and the original of the passenger VAT refund request, signed and stamped by the customs authority, at which the customs authority confirmed that the conditions for VAT refund had been fulfilled and the date of dispatch of goods had been entered.

If a VAT refund request is submitted to the operator, the passenger shall submit to the operator a VAT refund request, certified by an electronic stamp of the customs authority, i.e. in case of a malfunction of the information system, a printed copy of the VAT refund request, signed and stamped by the customs authority, which contains confirmation that the conditions for VAT refund had been fulfilled, as well as that the date of dispatch of goods from the customs territory of the Republic of Serbia had been entered.

The new ZPPPDV Form – Passenger VAT Refund Request (effective as of 16 November 2019) may be downloaded here: