VAT rate will increase to twenty percent in Serbia

From 1 October the rate of Value Added Tax will increase to 20 percent in Serbia, from the current 18 percent. The Serbian parliament decided beside the increase on Tuesday with the adoption of the amendments of the VAT Act.

The increase does not apply to, inter alia, basic foods, their rate remains 8 percent. The VAT ratio on child care products will increase to twenty percent as well, but the families can reclaim VAT, if the family income does not exceed the monthly 80 thousand dinars, and the value of the property 200 thousand dinars (approximately one Dinar 2.47 HUF). (MTI)