Do Serbian freelancers need a tax number?
Thread poster: Claudia Figueiredo

Claudia Figueiredo  Identity Verified
Portugal
Local time: 04:26
Member (2006)
English to Portuguese
+ ...
Dec 16, 2019

Good afternoon 😊

I have a small translation agency in Portugal.

I’m in the process of recruiting a freelancer from Serbia and I’m a bit confused regarding Serbia’s tax regulations.

As a company I need to deliver to my accountant invoices for all expenses, which includes freelance jobs. These invoices need to include a tax / vat number (or equivalent in the person’s country), otherwise won’t be accepted.

I’ve been told that in Ser
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Good afternoon 😊

I have a small translation agency in Portugal.

I’m in the process of recruiting a freelancer from Serbia and I’m a bit confused regarding Serbia’s tax regulations.

As a company I need to deliver to my accountant invoices for all expenses, which includes freelance jobs. These invoices need to include a tax / vat number (or equivalent in the person’s country), otherwise won’t be accepted.

I’ve been told that in Serbia you only have a ‘PIB’ or a Tax number if you are register as an entrepreneur and that only individuals who earn over € 20,000 per year are required to fill-in a tax report (this, so course, doesn’t concern me).

This person told me that he usually uses his ID number in his invoices.

My questions are:
Is this standard for freelancers?
Only people with a business need to register for a tax / vat number?
Aren’t freelancers required to have a tax / vat number?

I don’t want to be unfair and require something that doesn’t apply in Serbia or withhold taxes unnecessary, but if this person doesn’t have a tax number to avoid paying taxes, that is not my concern.

Can anyone clarify this for me, please?

Much appreciated!
Claudia
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Slobodan Kozarčić  Identity Verified
Serbia
Local time: 05:26
Member (2016)
English to Serbian
+ ...
Only agencies and companies Dec 16, 2019

have a tax number, as individuals we have JMBG (unique citizen's registry number). Since I am self-employed, my agency has a PIB (tax number) and I can issue invoices. I was asked several times to send my ID or passport number, even a copy of those documents, but that I didn't do. And never will.

Aleksandra Nikolic
 

Claudia Figueiredo  Identity Verified
Portugal
Local time: 04:26
Member (2006)
English to Portuguese
+ ...
TOPIC STARTER
Thanks for your help! Dec 16, 2019

So JMBG means Identification number, correct?

If you have an agency and therefor can issue invoices with a PIB, I don't really see why you should be sending your ID / passport number as well

I also send invoices to my customers (with my agencies's VAT number) and I have never been asked to send my ID number (and wouldn't sent it anyway!).

Thanks for your help, Slobodan!


 

Slobodan Kozarčić  Identity Verified
Serbia
Local time: 05:26
Member (2016)
English to Serbian
+ ...
My pleasure Dec 16, 2019

JMBG is a combination of someone's date of birth and some strange numbers (allegedly, one of them is a number of people that look like you!).

Claudia Figueiredo
 

RobinB  Identity Verified
United States
Local time: 22:26
German to English
No VAT number necessary Dec 17, 2019

Claudia,

Serbia is a third (non-EU) country, so there is no EU requirement for invoices issued in Serbia to an EU entity to show any tax number for the Serbian supplier. The Serbian supplier should note on their invoices that the reverse charge mechanism applies to these supplies.

However, it is possible that Portuguese tax law or practice requires some sort of tax number to be shown on third-country invoices (even though this is not required by EU law). In this case, i
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Claudia,

Serbia is a third (non-EU) country, so there is no EU requirement for invoices issued in Serbia to an EU entity to show any tax number for the Serbian supplier. The Serbian supplier should note on their invoices that the reverse charge mechanism applies to these supplies.

However, it is possible that Portuguese tax law or practice requires some sort of tax number to be shown on third-country invoices (even though this is not required by EU law). In this case, if the freelancer cannot provide a Serbian TIN (PIB), you might be required by Portuguese law to withhold tax.

Now would be a good time to speak to a tax accountant and get professional advice.
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Teresa Borges
Aleksandra Nikolic
 

Claudia Figueiredo  Identity Verified
Portugal
Local time: 04:26
Member (2006)
English to Portuguese
+ ...
TOPIC STARTER
Very useful information! Dec 19, 2019

Thank you also, RobinB!
Now, I will contact my accountant ;-

Best wishes!
Claudia


 


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Do Serbian freelancers need a tax number?

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