Serbia opens VAT refund opportunities for businesses from four european countries
Serbia has officially updated its list of countries benefiting from VAT refund reciprocity, creating new opportunities for foreign businesses operating in the country. France, Sweden, Luxembourg and Bulgaria have now been added to the list of eligible jurisdictions, allowing companies established in these countries to recover Serbian VAT under certain conditions.
This development represents an important step for international businesses seeking to optimise their indirect tax position and improve cash flow management when carrying out activities in Serbia.
The measure entered into force on the following dates:
- Luxembourg: 13 August 2025
- Sweden: 15 August 2025
- France: 18 August 2025
- Bulgaria: 21 August 2025
As a result, companies established in these four countries may now submit Serbian VAT refund claims for eligible expenses incurred from the applicable entry-into-force date onwards.
What does this mean in practice?
Foreign businesses often incur local VAT on a range of expenses linked to commercial activities abroad, including accommodation, professional services, trade fairs, transport, or local operational costs. Until now, companies established in France, Sweden, Luxembourg and Bulgaria were generally unable to recover Serbian VAT due to the absence of reciprocity arrangements.
With reciprocity now granted, eligible businesses may reclaim Serbian VAT, subject to compliance with local rules and documentary requirements.
For many companies, this creates a valuable opportunity to reduce unrecoverable costs and strengthen international VAT recovery strategies.
Important limitations and conditions
Although the announcement is positive news for international businesses, several important points should be considered carefully.
First, the measure is not retroactive. Only invoices issued from the relevant entry-into-force date are eligible for refund. Expenses incurred before these dates remain outside the scope of the new reciprocity arrangements.
Secondly, the Serbian VAT refund procedure remains highly technical and requires strict compliance with local requirements. Businesses must ensure that invoices contain the necessary information and that supporting documentation is properly prepared before submission.
Finally, companies should pay close attention to the filing deadline. VAT refund claims relating to the relevant refund period must generally be submitted by 30 June of the following year. Missing the deadline could result in the loss of recovery opportunities.
Why businesses should prepare early
International VAT recovery procedures can be administratively demanding, particularly when dealing with non-EU jurisdictions such as Serbia. Companies are therefore encouraged to review their Serbian expenses as early as possible and assess whether eligible VAT has been incurred since the applicable reciprocity date.
Early preparation allows businesses to:
- Identify eligible invoices
- Correct missing or incomplete documentation
- Avoid last-minute filing issues
- Maximise VAT recovery opportunities
- Improve cash flow and cost efficiency
Given the technical nature of Serbian VAT refund procedures, many businesses also choose to work with specialised advisers to secure compliant and timely submissions.
Conclusion
The extension of Serbian VAT refund reciprocity to France, Sweden, Luxembourg and Bulgaria marks a significant development for businesses operating internationally. Companies established in these four countries can now recover Serbian VAT on eligible expenses incurred from the applicable effective dates, opening the door to valuable cost savings and improved tax efficiency.
However, businesses should not underestimate the importance of preparation and compliance. The Serbian refund procedure remains complex, and the 30 June filing deadline leaves limited room for delay.
For companies with Serbian VAT exposure, now is the right time to review expenses, organise documentation and ensure that refund opportunities are not missed.
