In the Official Gazette no. 138/2022 from December 12, 2022, amendments to the Law on Tax Procedure and Tax Administration (“Law“) have been introduced.

Of special importance are the new provisions related to:

• Ex officio defense attorney – it is prescribed that the Tax Administration – Tax Police in the pre-investigation procedure, for a suspect who has not provided a defense attorney, appoints an ex officio defense attorney during the hearing process, due to the existence of grounds for suspicion that he has committed a tax crime for which a prison sentence of eight years or a heavier penalty is prescribed, in accordance with the Criminal Procedure Law. The decision on the appointment of a defense attorney ex officio is submitted to the defense attorney and no appeal is allowed against him. The Tax Administration pays the reward and necessary expenses of the defense attorney appointed ex officio in accordance with the Criminal Procedure Law;
• Criminal offense Unauthorized sale of fiscalization equipment;
• Criminal offense Illegal sale of accounting and other software.

In addition to the above amendments to the Law, among other things, certain articles of the Law were amended, as follows:

• An exception has been introduced to the rule that the tax return application must be submitted in electronic form, therefore it is prescribed that tax payers – natural persons who are required to submit a tax return application which is not related to the performance of their activities, can submit the application for return in electronic form or in writing form – directly or by post, except for the tax return applications for the annual personal income tax, which is submitted exclusively in electronic form;
• In relation to the commencement of the forced tax collection procedure, the provision on the basis of which the Tax Administration was not obliged to issue a decision on the forced tax collection if the request for postponement of tax payment was submitted within the deadlines prescribed by the Law, until a decision is made on that request, has ceased to exist, provided that the payment of the owed tax: (i) represents an unreasonably large burden for the taxpayer; (ii) causes significant economic damage to the taxpayer. Prior to new amendments and supplements to the Law, if the taxpayer did not meet the conditions specified in points (i) and (ii), the adoption of a decision on mandatory tax collection could be delayed in certain situations. However, having in mind the amendments to the Law, the abovementioned possibilities of postponing the decision of the Tax Administration are now no longer prescribed by Law and therefore not possible;
• The measure of prohibition of activities is imposed on a taxpayer who has been found to have certain irregularities in the course of a tax audit: (i) for a period FROM 15 days (instead of UP TO 15 days) if an irregularity is determined for the taxpayer for the first time in the audit procedure; (ii) for a duration FROM 90 days (instead of UP TO 90 days) if an irregularity is determined for the second time in the control procedure of the taxpayer; (iii) for a duration FROM one year (instead of UP TO one year) if this irregularity is determined for the third time in the control procedure of the taxpayer. Exceptionally, prohibition of activities of a taxpayer who performs the activity in the venue of manifestations (fairs, festivals, exhibitions and other manifestations as part of cultural, musical, sports and other social activities) is imposed for the entire time of duration of such manifestation;
• Additionally, it is prescribed that, if the taxpayer within two years from the final and binding conviction for following misdemeanors: (i) fails to file a tax return, calculates and pays tax; (ii) fails to submit a tax return, and calculates but does not pay the tax; (iii) submits a tax return but does not pay the tax; (iv) fails to submit a tax return in cases where it is prescribed by Law not to carry out self-taxation system, or upon the order of the control authority; commits the same misdemeanor, in addition to a fine, a protective measure prohibition of activities for a period of six months up to three years may be imposed on the tax payer. If the responsible person in the tax payer – legal entity commits the same offense within two years from the date of the final and binding conviction for the mentioned offenses, the responsible person may be fined and banned from performing certain tasks for a period of six months up to three years.

Entry into force

Although in the same issue of the Official Gazette no. 138/2022 from December 12, 2022, amendments and supplements to three more tax regulations were published in addition to the amendments and supplements to the Law, the enforcement of remaining tax regulations was postponed for January 1, 2023.

On the other hand, no delayed enforcement of amendments and supplements to the Law has been determined, therefore the new provisions of the Law entered into force on the eighth day of publication in the Official Gazette of the Republic of Serbia, i.e. on December 20, 2022.

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