Guide
Fiscalization in Serbia: who is obliged, exemptions and how to register
Fiscalization is mandatory for anyone selling goods or services to individuals, regardless of legal form and payment method: who is obliged, who is exempt and how the business premises, security element and device are registered.
Fiscalization is mandatory if you sell goods or services to individuals, whether you are a flat-rate trader, an entrepreneur keeping books or a d.o.o., and no matter whether the buyer pays in cash, by card, by check or with a voucher. Activities designated by Government decree are exempt, so your own activity is checked case by case, while sales to other businesses are not recorded on a fiscal receipt but invoiced, and those covered send that invoice through the System of Electronic Invoices. To start you need an electronic receipt-issuing system (ESIR), a fiscal receipt processor (local L-PFR or virtual V-PFR), a security element issued by the Tax Authority and an internet connection, because every receipt is delivered to the Tax Authority in real time. The registration runs through the Tax Authority: the business premises and locations are registered, the security element is applied for, the device is connected and tested, and then the first fiscal receipt is issued. Unlike the earlier model with fiscal cash registers, the new system uses an electronic device with a security element and an internet connection, and the goal is for the buyer to receive, for every sale, a fiscal receipt with a QR code they can verify.
What you should know
- Fiscalization is mandatory for every taxpayer making retail sales of goods or services to individuals (retail and services), regardless of legal form, so it applies to flat-rate entrepreneurs, entrepreneurs keeping books, and to companies (d.o.o.) alike.
- Turnover is recorded through an electronic fiscal device, which consists of an electronic receipt-issuing system (ESIR), a fiscal receipt processor (local L-PFR or virtual V-PFR), and a security element issued by the Tax Authority; every receipt is delivered to the Tax Authority in real time, that is, as soon as an internet connection is established.
- A fiscal receipt is issued for every individual sale to a person and must contain a QR code, which the buyer can scan to verify that the receipt is valid; it is mandatory regardless of the payment method (cash, card, check, voucher).
- When payment is received in advance, an advance fiscal receipt is issued at the moment the advance is received, and upon delivery of the goods or service a final fiscal receipt is issued in which the previously paid advance is deducted, avoiding double recording of turnover.
- Online sales (a web shop) to individuals are also subject to fiscalization: for distance selling a fiscal receipt is issued, most often in electronic form delivered to the buyer by email or available via a QR code, and it does not have to be printed on paper.
- Certain activities may be exempt from the obligation to record turnover through a fiscal device (activities the Government designates by decree, for example specific agricultural, financial, utility, and other prescribed activities); the exemptions are prescribed, so an activity's status should be checked for each specific case. The obligation is also on hold while an entrepreneur's activity is dormant, because no turnover is made and no receipts are issued, and it returns when work resumes.
- Before the first fiscal receipt you should have: the business premises and locations registered with the Tax Authority, a chosen ESIR and a matching fiscal receipt processor (local L-PFR or virtual V-PFR), the security element issued by the Tax Authority, an internet connection over which the device delivers receipts, and a device tested before the first sale; the registration covers every point of sale, not just the company.
- Common mistakes in practice: assuming flat-rate entrepreneurs are not covered, issuing a fiscal receipt only for cash while card payments are skipped, omitting the advance receipt and then recording the same turnover twice on delivery, treating online sales as exempt, and confusing a fiscal receipt with an e-invoice, although the fiscal receipt goes to individuals and the e-invoice to other businesses.
- Once the device is in place, fiscalization becomes part of routine bookkeeping: reports on fiscalized turnover are posted to the business books, the daily takings are reconciled with the fiscal reports, and turnover is tied to the VAT records and other documentation; differences between takings and fiscal reports usually mean a cash shortfall or a recording error.
| Situation | Fiscal receipt | Note |
|---|---|---|
| Selling goods or a service to an individual | Required | Regardless of legal form (flat-rate trader, entrepreneur keeping books, d.o.o.) and payment method (cash, card, check, voucher) |
| Online sales to individuals | Required | The receipt is usually electronic, by email or via a QR code, and need not be printed |
| Advance payment from an individual | Required, twice | An advance receipt when the advance is received, a final one on delivery with the advance deducted, so turnover is not recorded twice |
| Sales to other businesses | Not issued | The document is an invoice, which those covered send through the System of Electronic Invoices (SEF) |
| Activity exempt by Government decree | Not issued | The exemptions are prescribed (for example specific agricultural, financial and utility activities); the status is checked case by case |
| Entrepreneur with a dormant activity | Not issued | While dormant there is no turnover and no receipts; the obligation returns when work resumes |
How we handle it
- 01 Assessing the obligation We analyze your activity and sales method to determine whether and to what extent you are subject to fiscalization, and we check whether any prescribed exemption applies to you.
- 02 Choosing the device and security element We advise you on a suitable electronic fiscal device solution (ESIR with the accompanying L-PFR or V-PFR) and help submit the application to the Tax Authority for issuance of the security element.
- 03 Registration and go-live We register the business premises and locations with the Tax Authority and help you connect and test the device, so the first fiscal receipt is correctly issued and recorded.
- 04 Setting up advances and online sales We set up correct issuing of advance and final receipts, and for a web shop we introduce the issuing of electronic fiscal receipts to individual buyers.
- 05 Posting and control We collect reports on fiscalized turnover, post them to the business books, and reconcile them with VAT records and other documentation.
- 06 Monitoring the regulations We follow changes to the fiscalization rules and promptly inform you of new obligations, deadlines, or changes that affect how you issue receipts.
Frequently asked questions
Who must fiscalize their turnover?
Fiscalization is mandatory for anyone making retail sales of goods or services to individuals, regardless of legal form, so it applies to flat-rate entrepreneurs, entrepreneurs keeping books and companies.
Who is exempt from fiscalization?
Activities designated by Government decree are exempt, for example specific agricultural, financial and utility activities, so each activity's status is checked case by case. No fiscal receipt is issued for sales to other businesses either, because those are invoiced, and there is no obligation while an entrepreneur's activity is dormant, because no turnover is made and no receipts are issued then.
Is online selling also subject to fiscalization?
Yes. Distance selling to individuals is subject to fiscalization too; a fiscal receipt is issued, most often electronically, delivered to the buyer by email or available via a QR code, and it need not be printed.
What makes up an electronic fiscal device?
An electronic fiscal device consists of an electronic receipt-issuing system (ESIR), a fiscal receipt processor (local L-PFR or virtual V-PFR) and a security element issued by the Tax Authority.
Does a flat-rate trader need a fiscal device?
Yes, if they sell goods or services to individuals. The fiscalization obligation does not depend on legal form or the way you are taxed, so flat-rate taxation does not exempt anyone from issuing fiscal receipts, nor does keeping only a KPO book.
Is a fiscal receipt the same as an e-invoice?
No. A fiscal receipt is issued to individuals through an electronic fiscal device and delivered to the Tax Authority in real time, while an e-invoice is issued to other businesses through the System of Electronic Invoices (SEF). The same business may need both, depending on who the buyer is.
What if there is no internet connection at the moment of sale?
Fiscal receipts are delivered to the Tax Authority in real time, that is, as soon as an internet connection is established, so an issued receipt is transmitted the moment the connection is back. That is why a stable connection at the point of sale counts as basic equipment, and which fiscal receipt processor (L-PFR or V-PFR) suits your point of sale is something we check before the device goes live.
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