Taxpayer

- A person who permanently or occasionally independently engages in economic activity, regardless of the goals and results of this activity.
- The obligation for mandatory registration for VAT purposes applies only to those taxpayers who have generated a total taxable turnover of more than 2,000,000 denars in the previous calendar year.

Tax Rate

The general tax rate of 18% applies to the entire turnover and import, and there are also preferential tax rates of 10% and 5%.

A preferential tax rate of 5% applies to:

- Basic products for human consumption.
- Drinking water from public supply systems and the discharge of urban wastewater and water for irrigation of agricultural land.
- Publications such as books and electronic/digital textbooks, brochures and similar printed materials, newspapers, and other periodicals, children's picture books, drawing and coloring books for children, and cartographic products of any kind, except publications mainly for advertising purposes, as well as publications with pornographic content.
- Seeds and planting material for the production of agricultural plants.
- Fertilizers.
- Plant protection products.
- Plastic foils for use in agriculture.
- Agricultural machinery.
- Medicines, including veterinary medicines.
- Menstrual hygiene products.
- Data processing machines, software for data processing machines, and their units (computers).
- Thermal solar systems and components.
- Medical equipment, aids, and other devices intended for alleviating or treating disability exclusively for personal use by disabled persons.
- Crude oil for the production of food for human consumption.
- The first sale of residential buildings and apartments used for residential purposes that is carried out within five years after construction.
- Animal feed, feed additives, and live livestock.
- Baby products, including cribs, strollers, carriers, bouncers, car seats, tubs, highchairs, pacifiers, bottles, and diapers.
- School supplies such as school bags, notebooks, pencils, pens, blocks, workbooks, crayons, rulers, compasses, modeling clay, sharpeners, erasers, and correctors.
- Pellets, pellet stoves, and pellet boilers.
- Thermal energy for heating.

A preferential rate of 5% also applies to the turnover of the following services:

- Transport of persons and their accompanying luggage.
- Software for data processing machines and their units (computers).
- Accommodation services (overnight stay) or accommodation with breakfast, half board, or full board, in all types of commercial hospitality facilities.
- Public cleaning and waste disposal services.
- Craft services (repair of shoes, bicycles, and leather products, clothing, household linens, and hairdressing services).

A preferential tax rate of 10% applies to:

- Turnover and import of electricity for households.
- Other products for human consumption (which are not subject to the preferential rate of 5%).

Legislation

Law on Value Added Tax – unofficial consolidated text