Issuing invoices for flat-rate taxpayers
An invoice is a document you issue to a customer for goods sold or services provided.
When you provide a service or sell goods, you must record the income earned and issue the appropriate invoice.
What must an invoice include?
An invoice must contain basic information about you, the customer and what you are charging for:
- Business name, address, tax ID and company registration number of the sole proprietor
- Customer details
- Invoice number
- Issue date
- Transaction date
- Description of service or goods
- Quantity and price
- Total amount payable
- Currency and payment details
Flat-rate taxpayers do not charge VAT
As a flat-rate taxpayer, you do not charge VAT on the invoice, and you must clearly state that you are not in the VAT system.
On the invoice you can state:
“The taxpayer is not in the VAT system. VAT has not been charged on this invoice in accordance with Article 33 of the Value Added Tax Act.”
📘 What an identification mark is, how invoice dates are determined and what else an invoice must contain is explained in detail in our Brochure for flat-rate taxpayers.
Invoices for foreign clients
You can also issue an invoice to a client abroad, in a foreign language and foreign currency.
We recommend that the invoice be bilingual – in Serbian and the foreign language. In a tax audit you may need to provide documentation in a foreign language translated into Serbian. A sworn translator adds extra cost you can avoid if you issue bilingual invoices from the start.
If you receive payment from a client through services such as PayPal or Payoneer, the income must also be recorded and you must have the appropriate invoice. It does not matter whether the client paid directly to your foreign currency account or through a payment service – if money was received for a service or goods sold, it is business income.
Not every credit to your account is income
For example, a loan, transfer of your own funds, a loan from someone else or a refund of a previously paid amount are not income from selling goods or providing services.
It is important to know for every credit on what basis it arose and to have appropriate documentation.
Invoice, eInvoice or fiscal receipt?
These three types of receipt should not be confused. Which one you issue depends, among other things, on who you sell goods or services to and how.
If you do business with certain public or private sector entities, you may be required to issue an electronic invoice through the System of Electronic Invoices (SEF).
If you conduct retail sales, you may be required to issue a fiscal receipt.
Need more details?
📘 In our Brochure for flat-rate taxpayers we explain in detail issuing invoices, dates and mandatory invoice elements, the identification mark, recording income and other important obligations during business.
