The VAT tax period is the period of time for which a taxable person calculates Value Added Tax (VAT), submits a VAT return and settles the resulting tax liability. Depending on the turnover achieved and the taxpayer’s status, the VAT tax period may be monthly or quarterly.
It is important to understand that choosing a VAT tax period is not always at the taxpayer’s discretion. In most cases, the applicable period is determined by statutory requirements, with the most important criterion being the total turnover generated during the previous 12 months.
1. Monthly and Quarterly VAT Tax Periods
Under the Serbian VAT Law, there are two types of VAT tax periods:
Monthly tax period – covers one calendar month.
Quarterly tax period – covers three calendar months, corresponding to one calendar quarter.
The quarterly tax periods are structured as follows:
Tax period VAT return and payment deadline
January – March 15 April
April – June 15 July
July – September 15 October
October – December 15 January
For monthly VAT taxpayers, the VAT return must be submitted and the tax paid by the 15th day of the following month. For example, the VAT return for October must be submitted, and any VAT due must be paid, by 15 November.
The 15-day deadline applies to the submission of the VAT return, while the calculated VAT must also be paid within the same period, provided that a payment obligation arises.
2. How Is the VAT Tax Period Determined?
The main criterion for determining the VAT tax period is the total turnover generated by the taxpayer during the previous 12 months.
In accordance with Article 48 of the Serbian VAT Law:
If the total turnover during the previous 12 months is below RSD 50,000,000, the VAT tax period is a calendar quarter.
If the total turnover during the previous 12 months exceeds RSD 50,000,000, the VAT tax period is a calendar month.
This means that companies and entrepreneurs whose turnover remains below the prescribed threshold generally have quarterly VAT reporting obligations, while those exceeding RSD 50 million are required to switch to monthly VAT returns.
It is important to note that the relevant criterion is total turnover, not profit. Furthermore, the fact that customers have not yet settled their invoices does not automatically mean that such turnover is excluded when determining the applicable VAT tax period.
3. What Happens When a Taxpayer Exceeds the RSD 50 Million Threshold?
The transition from quarterly to monthly VAT reporting takes place automatically by operation of law. The taxpayer does not need to submit a separate request or wait for a formal decision from the Tax Administration.
The change takes effect from the month following the end of the calendar quarter in which the taxpayer’s turnover over the previous 12 months exceeded RSD 50,000,000.
Practical example:
If a company exceeds the RSD 50 million turnover threshold during the third quarter of 2026, covering the period from July to September, it must switch to monthly VAT reporting starting in October 2026.
In practical terms:
The last quarterly VAT return covers July–September and must be submitted by 15 October 2026.
The first monthly VAT return covers October and must be submitted by 15 November 2026.
For this reason, businesses should regularly monitor their turnover to ensure that they do not overlook the transition to monthly VAT reporting and payment obligations.