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16
aug

Serbia extends VAT exemption to the transfer of property

The amendments came into force on 5 August 2012

In the Official Gazette, No 76 of 4 August 2012, amendments were published to the Rulebook on determining whether a transfer, with or without consideration or as initial investment, has taken place of all or a portion of property that is not deemed to be a supply of goods and services in the sense of the VAT Law.

The amendments to the rulebook extend the scope of non-taxable transfers of property, so that a supply of goods and services that is not subject to VAT (besides the transfer of a technical-technological unit) also includes the transfer of a functional unit in which a business activity is conducted.

These amendments to the rulebook introduce the possibility for a VAT-exempt transfer of a part of a business, which does not represent production (i.e., technical unit), if the acquirer is a taxable person, or through such transfer becomes a taxable person, and continues to perform the same business activity.

Further, the amendments to the rulebook specify that supplies of goods and services that are not subject to VAT include the continuation of the performance of a business activity by an entrepreneur in the form of a company.

tmagazine.ey.com