Recognition of company cards for the purchase of goods and services in taxation and VAT regulations

The use of company cards issued by suppliers of goods and services to their corporate customers, allowing them to arrange the purchase of company-related goods and services (e.g. gasoline, taxi, etc.) by its employees, has been recognized and regulated by the latest amendments of the relevant Serbian tax and VAT regulations.

The latest changes to the Serbian regulations on types of tax receipts, types of transactions, payment methods, reference number of other documents and specifics of other items of tax receipt (“Official Gazette of the Republic of Serbia “, nos. 31/2021, 99/2021, 10/2022 and 49/2022) – the Compendium of Tax Revenue Rules – which entered into force on April 22, 2022, treats corporate cards as one of the methods of payment for goods and services, and imposes the obligation to issue a tax receipt and the obligation to issue a separate invoice , in accordance with VAT regulations.

Simultaneously, the latest amendments to the Serbian VAT regulations (“Official Gazette of the Republic of Serbia”, nos. 37/2021, 64/2021, 127/2021 and 49/2022) were issued, synchronizing the VAT regulations with the above amendments to the Revenue Tax Rule Book. The VAT regulations deal with tax receipts issued on the basis of the use of company cards in the provisions that govern whether or not a tax receipt is considered an invoice, in terms of VAT law, indicating that the tax receipt issued on the basis of a purchase via company cards the card is not an invoice within the meaning of the VAT law. The general significance of this distinction remains the same – in cases where the tax receipt is considered an invoice within the meaning of VAT law, when and if it issues a separate invoice, the VAT taxpayer does not have not to indicate on this invoice all the data required by the VAT. Act, but can only state the total payment amount for the transaction in question.

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