Import of goods

Taxation related to import of goods greatly depends on type of allowed customs clearance procedure pertaining to goods and treatment thereof. Article 58 of the Law on Value Added Taxes prescribes that customs regulations shall apply to import of goods, if the Law on Value Added Taxes does not prescribe otherwise, and Article 59 of the Law on Value Added Taxes sets forth that calculation and collection of VAT in import of goods falls under competence of customs authority implementing the custom clearance procedure, if the Law on Value Added Taxes does not prescribe otherwise. Therefore, in order to ensure proper application of regulations related to calculation and collection of VAT in import of goods, custom-related regulations and specific provisions of the Law on Value Added Taxes pertaining to import of goods are of utmost importance.

Pursuant to Article 5, paragraph 1, item 13) of the Law on Customs (Official Gazette of RS, 18/10 and 111/12), allowed custom clearance procedure and treatment of goods and use thereof shall be the following: 

1. placement of goods under custom clearance procedure;
2. introduction of goods into free trade zone or free storage;
3. re-export of goods from customs territory of the Republic of Serbia;
4. destruction of goods;
5. cession of goods to the state.

Pursuant to Article 83 of the Law on Customs, in compliance with conditions prescribed therein, an allowed custom clearance procedure or treatment can be applied to goods regardless of quantity or type thereof, as well as regardless of origin, destination or manner of transport of such goods, unless this Law does not state otherwise. Exceptionally, allowed custom clearance treatment or use shall not be applied if such action is contrary to measures of public security and protection of morale, protection of health or human lives, protection of fauna and flora, environmental protection, protection of natural rarities, cultural heritage, artistic, historical, archaeological, ethnological or technological value, protection of royalties and other related rights, intellectual property rights, etc.

From the taxation aspect, placement of goods in custom clearance procedure is most important allowed treatment of goods and use thereof, since such procedure most commonly implies the obligation of calculation and collection of VAT, or exemption from VAT procedure.

Pursuant to Article 5, paragraph 1, item 14) of the Law on Customs, placement of goods in custom clearance procedure, as a part of allowed custom treatment of goods, comprises several different procedures, such as:

1. placement of goods into free trade;
2. transit of goods;
3. custom storing of goods;
4. active refining of goods;
5. processing of goods under customs control;
6. temporary import of goods;
7. passive refining of goods;
8. export of goods.

Each of these procedures is differently treated in taxation terms. Most of these procedures are subject to VAT, but exemption from VAT is prescribed for certain number of procedures. There is tax relief for certain types of goods within each of these procedures.

Taxation treatment of customs storing of goods will be presented in the text below, as well as for active refining of goods and transit as specific parts of placement of goods in custom clearance procedure. There is a specific part of the text which addresses other tax exemption based on transport and other services that are related to import, temporary import, export and transit of goods.

Before we move to taxation for listed custom clearance procedures, we would like to point out to the following:

• pursuant to Article 84 of the Law on Customs, goods that are to be subject to custom clearance procedure shall be covered by declaration for such custom clearance procedure.  
• domestic goods notified for export, passive refining, transit of custom storing shall be under customs supervision from the moment of acceptance of declaration to the moment of leaving of customs territory, destruction, i.e. cancellation of the declaration.

Declaration shall be submitted:

1. in written form;
2. in electronic data exchange, if this is technically viable and if use of electronic means is approved by the director of Customs Directorate;
3. in oral or otherwise, whereby holder of goods requires placement of goods in custom clearance procedure, when such option is stipulated by relevant regulations.

Written declaration shall be submitted on template of Single Administrative Document (hereinafter referred to as: SAD), whose form, content and manner of submission and filling in are prescribed by the Rulebook on form, contents, manner of submission and filling in of declaration and other documents in custom clearance procedure (Official Gazette of RS 7/15 – hereinafter referred to as Rulebook on declaration).