Answers to our clients' most frequent questions about e-invoices, flat-rate taxation, employees and LLC operations. Find an answer by category or search directly.
Why this matters to your business: If you’re not in the right system, clients (especially larger or government sectors) won’t be able to pay you, because an invoice sent in Word or Excel is legally invalid.
For whom it applies: For all legal entities and entrepreneurs in Serbia.
How it works in practice:
What you need to do: Before you sign up for SEF yourself (there’s no going back once you’re in), give us a call. We check with whom you do business and advise whether it is worth it for you to stay out of the system.
Note: Legal basis: Law on Electronic Invoicing, Art. 4-6 (mandatory/voluntary users).
Why this is important for your business: The response time is 15 days from receipt, but the consequences of inaction depend on who receives the invoice — the rule is NOT the same for everyone.
For whom it applies: For all users of the e-invoice system (SEF).
How it works — IMPORTANT DISTINCTION:
Odbijena faktura i dalje ne gasi obavezu plaćanja — to je i dalje verodostojna isprava i prodavac može da pokrene naplatu. Ali dok je faktura u statusu “odbijena”, kupacne može da iskoristi odbitak ulaznog PDV-apo toj fakturi.
How it works in practice: You log in to SEF, the “Incoming invoices” inbox. If everything is fine, click the green Accept button. If the invoice is incorrect, click the red Reject button and enter the reason in the drop-down menu.
What you need to deliver to the agency: At least once a week, check “Incoming invoices” on SEF. If you’re not sure what to do with an invoice, don’t click randomly — send us the invoice number and we’ll tell you what to do.
Note: Legal basis: Law on Electronic Invoicing, Art. 10 (deadline for acceptance/rejection and legal consequences of missing the deadline).
Why this matters to your business: If you get the amount or VAT wrong and leave the invoice that way, you’re paying tax on the amount you didn’t collect. That is why the error must be reversed immediately.
For whom it applies: For everyone who issues invoices through SEF.
How it works: There is no “rubber” in electronic invoicing. There is only one option for correction:
Useful official sources:
Why this is important for your business: The end of flat taxation means higher costs and different administration. Over 6 million you hire an accountant; over 8 million you become a VAT payer, which changes the prices of your services.
Who it applies to: Exclusively for entrepreneurs who are currently flat taxed.
How Thresholds Work — These are two different thresholds, don’t mix them up:
Example from practice: Marko is a lump sum. From May 15 of last year to May 15 of this year, it achieved a turnover of RSD 8,100,000 — it automatically enters the VAT system. If he had achieved that turnover over three years, he would still be safe, because the threshold of 8 million is observed exclusively in relation to the previous 12 months/365 days back, and not cumulatively since the beginning of work.
What you need to submit to the agency: We regularly monitor your KPO book if you regularly submit your issued invoices to us. Inform us immediately if you expect a larger payment that pushes you close to these limits, so that we can prepare the transition to the VAT system or keeping business books in time, without penalties .
Why this is important for your business: While the agency is “frozen”, you don’t pay taxes or contributions — ideal when you don’t have work for a few months.
For whom it applies: For all entrepreneurs (flat rate payers and those who keep business books).
How it works: The application is submitted to the APR and the Tax Administration. During the period of rest, the entrepreneur may not issue any invoices.
What you need to submit to the agency: Dormants are not retroactive. Please let us know at least 5 days before the desired pause date, so that we can submit the application to the APR and the Tax Office on time.
Why this is important for your company: Pregnancy and maternity leave are reimbursed by the state, but in different ways — it is important to know when the employer pays from his own pocket, and when the state takes over in full.
For whom it applies: For all employers (DOO and entrepreneurs) with employed women under an employment contract.
How it works in practice:
What you need to deliver to the agency: The email you received from e-Administration. Without that email, we can’t access the original remittances and can’t process the salary.
Why this is important for your company: The wrong choice of contract can bring serious fines from the Labor Inspectorate or an unnecessarily high tax. Each contract has its purpose and price.
For whom it applies: For all companies and entrepreneurs who hire associates.
What you should do: Never let an employee start work before the paperwork is done. Send us the scanned ID card of the employee and the signed contract.
Why this matters to your business: The government allows certain tax-free (or low-tax) allowances to be paid — a way for the worker to get more and cost the company less.
For whom it applies: For all employers (DOO and entrepreneurs) with employees.
What you need to submit to the agency: Submit transport invoices (tickets, gas station receipts) or completed travel orders by the 25th of the month. Define the exact amount of the hot meal and holiday allowance in the Employment Agreement or the Company’s Regulations and be sure to inform us of the amounts for the correct calculation of the pay slip.
Why this is important for your business: A business card is not the same as a personal card. If you post private accounts to the company, the Tax Office will deduct them from your expenses and you will pay an additional tax on the “withdrawal” of money.
Who it applies to: LLC owners, but also entrepreneurs who keep business books.
What you need to submit to the agency: For each paid bill from a restaurant or cafe, write on the back which company/client you were with. Submit all such invoices to us by the 5th of the month.
Why this matters to your business: The money in the LLC account is not your personal money. To legally pocket it, a tax is paid to the government — and the rate depends on who the recipient is.
For whom it applies: Exclusively for owners of LLC companies (entrepreneurs do not pay tax).
Tax rate — must separate:
Example (resident, natural person): When the business year ends and the profit is determined (e.g. one million dinars in net profit after already paid profit tax of 15% during the year), a Decision on payment is made. The state takes an additional 15% (RSD 150,000) dividend tax on that million, and you are left with RSD 850,000 for legal transfer to a private account.
What you should do: Never withdraw money from the company’s account before telling us. Let us know the desired amount — we prepare the Payment Decision and the tax payment slip. Tax is paid first, only then is the money transferred.
Note: If one of the co-owners of the LLC is not a resident of Serbia, be sure to check the existence and conditions of the UIDO before applying the 15% rate — incorrect application of the resident rate to a non-resident is a frequent source of subsequent tax liability.
Why this matters to your business: Without proper paperwork, fuel is written out of expenses — at the end of the year you have a fictitiously higher profit and pay higher corporate taxes.
For whom it applies: For companies with registered vehicles in the name of the company (LLC and entrepreneurs who keep business books).
How it works: Every trip in an official vehicle must have a completed Travel Order: route, mileage and how much fuel was filled. The number of liters and the date from the pump bill must match the travel order.
What you need to submit to the agency: Download a free travel order template from the portal. For each month, fill out the orders properly, scan the receipts from the pump and deliver them to us no later than the 5th of the month. Without this, bills from the pump cannot be posted.
Legally, if the invoice is issued to the PIB of the company (not to you as a natural person). We draw up a “Decision on Reimbursement of Expenses” — the company pays you the amount without additional tax.
Do not panic, but act immediately. Default interest is calculated; pay the exact amount as soon as you remember. Longer delays may result in a warning or account freeze — contact us if you have a liquidity problem.
Yes, a serious problem (illegal work). The worker must be registered in CROSO and the contract must be signed before the first working day. Send us his scanned identity card and signed employment contract immediately.
Every raise must have a cover. Without an account, the Tax Office can treat it as your personal income (high tax) or it is recorded as a loan to the founder that you have to pay back. Contact us immediately to find a solution before the final bill.
Don’t do it alone. If you issue both a fiscal invoice and an e-invoice without technical connection in the system, the state counts it as a double sale — double income, double tax. Please let us know so we can get it through the system correctly.
Invoices through SEF are stored automatically electronically. You still keep physical accounts, employment contracts and lease agreements. Term: most accounting documents 10 years; documentation on wages and employment contracts of employees — permanently.
No, unless the car is legally associated with the company (owned by the company or there is a Vehicle Lease Agreement). Otherwise, the Tax Inspectorate automatically disputes that expense.
Without medical documentation, the employee is formally unjustified absent. The law requires that he submit the confirmation within 3 days, and the remittances at the end of the month. Without original remittances, we cannot calculate sick pay.
Yes, banks automatically report foreign currency inflows to private accounts. The tax authorities may treat it as “freelancer” personal income and charge full taxes and contributions afterwards. Direct all payments exclusively to the company’s account.
The liquidation of an LLC legally takes a minimum of 120 days (90 days of advertisement for creditors + 30 days for reporting claims), but in practice it takes 4-6 months, and often longer if there are outstanding claims. Includes creditor notification, APR disclosure and extraordinary financial statements. Contact us as soon as business goes downhill so we can start the process on time.
Why this matters to your business: If you’re not in the right system, clients (especially larger or government sectors) won’t be able to pay you, because an invoice sent in Word or Excel is legally invalid.
For whom it applies: For all legal entities and entrepreneurs in Serbia.
How it works in practice:
Mandatory users: everyone in the VAT system and all state institutions (municipalities, schools, public companies) — must send and receive everything through SEF.
Voluntary users: flat rate payers and persons outside the VAT system. If the lump-sum payer wants to do business with the public sector, he must apply to the SEF as a voluntary user.
What you need to do: Before you sign up for SEF yourself (there’s no going back once you’re in), give us a call. We check with whom you do business and advise whether it is worth it for you to stay out of the system.
Note: Legal basis: Law on Electronic Invoicing, Art. 4-6 (mandatory/voluntary users).
Why this is important for your business: The response time is 15 days from receipt, but the consequences of inaction depend on who receives the invoice — the rule is NOT the same for everyone.
For whom it applies: For all users of the e-invoice system (SEF).
How it works — IMPORTANT DISTINCTION:
Odbijena faktura i dalje ne gasi obavezu plaćanja — to je i dalje verodostojna isprava i prodavac može da pokrene naplatu. Ali dok je faktura u statusu “odbijena”, kupacne može da iskoristi odbitak ulaznog PDV-apo toj fakturi.
How it works in practice: You log in to SEF, the “Incoming invoices” inbox. If everything is fine, click the green Accept button . If the invoice is incorrect, click the red Reject button and enter the reason in the drop-down menu.
What you need to submit to the agency: Check “Incoming invoices” on SEF at least once a week. If you’re not sure what to do with an invoice, don’t click randomly — send us the invoice number and we’ll tell you what to do.
Note: Legal basis: Law on Electronic Invoicing, Art. 10 (deadline for acceptance/rejection and legal consequences of missing the deadline).
Why this matters to your business: If you get the amount or VAT wrong and leave the invoice that way, you’re paying tax on the amount you didn’t collect. That is why the error must be reversed immediately.
For whom it applies: For everyone who issues invoices through SEF.
How it works: There is no “rubber” in electronic invoicing. There is only one option for correction:
Useful official sources:
Why this is important for your business: The end of flat taxation means higher costs and different administration. Over 6 million you hire an accountant; over 8 million you become a VAT payer, which changes the prices of your services.
Who it applies to: Exclusively for entrepreneurs who are currently flat taxed.
How Thresholds Work — These are two different thresholds, don’t mix them up:
Example from practice: Marko is a lump sum. From May 15 of last year to May 15 of this year, it achieved a turnover of RSD 8,100,000 — it automatically enters the VAT system. If he had achieved that turnover over three years, he would still be safe, because the threshold of 8 million is observed exclusively in relation to the previous 12 months/365 days back, and not cumulatively since the beginning of work.
What you need to submit to the agency: We regularly monitor your KPO book if you regularly submit your issued invoices to us. Inform us immediately if you expect a larger payment that pushes you close to these limits, so that we can prepare the transition to the VAT system or keeping business books in time, without penalties .
Why this is important for your business: While the agency is “frozen”, you pay no taxes or contributions — ideal when you have no work for a few months.
For whom it applies: For all entrepreneurs (flat rate payers and those who keep business books).
How it works: The application is submitted to the APR and the Tax Administration. During the period of rest, the entrepreneur may not issue any invoices.
What you need to submit to the agency: Dormants are not retroactive. Please let us know at least 5 days before the desired pause date, so that we can submit the application to the APR and the Tax Office on time.
Why this is important for your company: Pregnancy and maternity leave are reimbursed by the state, but in different ways — it is important to know when the employer pays from his own pocket, and when the state takes over in full.
For whom it applies: For all employers (DOO and entrepreneurs) with employed women under an employment contract.
How it works in practice:
What you need to deliver to the agency: The email you received from e-Administration. Without that email, we can’t access the original remittances and can’t process the salary.
Why this is important for your company: The wrong choice of contract can bring serious fines from the Labor Inspectorate or an unnecessarily high tax. Each contract has its purpose and price.
For whom it applies: For all companies and entrepreneurs who hire associates.
What you should do: Never let an employee start work before the paperwork is done. Send us the scanned ID card of the employee and the signed contract.
Why this matters to your business: The government allows certain tax-free (or low-tax) allowances to be paid — a way for the worker to get more and cost the company less.
For whom it applies: For all employers (DOO and entrepreneurs) with employees.
What you need to submit to the agency: Submit transport invoices (tickets, gas station receipts) or completed travel orders by the 25th of the month. Define the exact amount of the hot meal and holiday pay in the employment contract or the company’s work regulations and be sure to inform us of the amounts for the correct calculation of the payslip.
Why this is important for your business: A business card is not the same as a personal card. If you post private accounts to the company, the Tax Office will deduct them from your expenses and you will pay an additional tax on the “withdrawal” of money.
Who it applies to: LLC owners, but also entrepreneurs who keep business books.
What you need to submit to the agency: For each paid bill from a restaurant or cafe, write on the back which company/client you were with. Submit all such invoices to us by the 5th of the month.
Why this matters to your business: The money in the LLC account is not your personal money. To legally pocket it, a tax is paid to the government — and the rate depends on who the recipient is.
For whom it applies: Exclusively for owners of LLC companies (entrepreneurs do not pay tax).
Tax rate — must separate:
Example (resident, natural person): When the business year ends and the profit is determined (e.g. one million dinars in net profit after already paid profit tax of 15% during the year), the Decision on payment is made. The state takes an additional 15% (RSD 150,000) dividend tax on that million, and you are left with RSD 850,000 for legal transfer to a private account.
What you should do: Never withdraw money from the company’s account before telling us. Let us know the desired amount — we prepare the Payment Decision and the tax payment slip. Tax is paid first, only then is the money transferred.
Note: If one of the co-owners of the LLC is not a resident of Serbia, be sure to check the existence and conditions of the UIDO before applying the 15% rate — incorrect application of the resident rate to a non-resident is a frequent source of subsequent tax liability.
Why this matters to your business: Without proper paperwork, fuel is written out of expenses — at the end of the year you have a fictitiously higher profit and pay higher corporate taxes.
For whom it applies: For companies with registered vehicles in the name of the company (LLC and entrepreneurs who keep business books).
How it works: Every trip in an official vehicle must have a completed Travel Order: route, mileage and how much fuel was filled. The number of liters and the date from the pump bill must match the travel order.
What you need to submit to the agency: Download a free travel order template from the portal. For each month, fill out the orders properly, scan the receipts from the pump and deliver them to us no later than the 5th of the month. Without this, bills from the pump cannot be posted.
Legally, if the invoice is issued to the PIB of the company (not to you as a natural person). We draw up a “Decision on Reimbursement of Expenses” — the company pays you the amount without additional tax.
Do not panic, but act immediately. Default interest is calculated; pay the exact amount as soon as you remember. Longer delays may result in a warning or account freeze — contact us if you have a liquidity problem.
Yes, a serious problem (illegal work). The worker must be registered in CROSO and the contract must be signed before the first working day. Send us his scanned identity card and signed employment contract immediately.
Every raise must have a cover. Without an account, the Tax Office can treat it as your personal income (high tax) or it is recorded as a loan to the founder that you have to pay back. Contact us immediately to find a solution before the final bill.
Don’t do it alone. If you issue both a fiscal invoice and an e-invoice without technical connection in the system, the state counts it as a double sale — double income, double tax. Please let us know so we can get it through the system correctly.
Invoices through SEF are stored automatically electronically. You still keep physical accounts, employment contracts and lease agreements. Term: most accounting documents 10 years; salary documentation and employment contracts of employees — permanent.
No, unless the car is legally associated with the company (owned by the company or there is a Vehicle Lease Agreement). Otherwise, the Tax Inspectorate automatically disputes that expense.
Without medical documentation, the employee is formally unjustified absent. The law requires that he submit the confirmation within 3 days, and the remittances at the end of the month. Without original remittances, we cannot calculate sick pay.
Yes, banks automatically report foreign currency inflows to private accounts. The tax authorities may treat it as “freelancer” personal income and charge full taxes and contributions afterwards. Direct all payments exclusively to the company’s account.
Legally, the liquidation of an LLC takes a minimum of 120 days (90 days of advertisement for creditors + 30 days for reporting claims), but in practice it realistically takes 4-6 months, and often longer if there are outstanding claims. Includes creditor notification, APR disclosure and extraordinary financial statements. Contact us as soon as business goes downhill so we can start the process on time.
Schedule a consultation and get an answer tailored to your specific situation.
This page is for informational purposes and is a general guide for MNP Advisory clients. It does not replace an individual tax analysis of a specific case — for specific situations (residency, status of a person, transaction value) you must contact the agency before proceeding.
