MALI: Procedure of VAT recovery for foreign tourists to be simplified

Serbian Finance Minister Sinisa Mali and the Vice President for New Markets at Global Blue, Birgitta Falk, signed the Memorandum of understanding and cooperation on the project of establishing a VAT recovery scheme for foreign tourists through the digitalization of this procedure, on Thursday, February 21, the minister’s cabinet announced.

Mali said that the program should start on January 1, 2020, and that it should facilitate purchase for foreign tourists.

– It will also facilitate VAT recovery for them, whereby they will be motivated to spend more. We thereby also stimulate the further growth of our economy and the employment in our country – the minister said.

He added that the stay of foreign tourists in Serbia should be pleasant and that it was therefore important to simplify the procedure of VAT recovery.

– This is the most modern, most sophisticated, fully digitalized system. We will achieve this through good connections between the Tax Administration, the Customs Administration and retail outlets which are to be included in the system in order to accelerate VAT recovery as much as possible – he said.

Mali also pointed out that the number of tourists in Serbia was growing and that Serbia was becoming an increasingly attractive travel destination each year.

– In 2018, Serbia was visited by more than 3.4 million tourists, that is, 11% more than in the same period in 2017. Last year, there were more than 9.3 million overnight stays. Tourism revenues amounted to USD 1.5 billion last year.

Falk said that consumers who visit Serbia from the neighboring countries “are an indication” that there is a potentially large retail market in Serbia.

– We need to be pro-active by preparing to welcome these travelers warmly. They are increasingly digital-savvy, so we will raise the VAT recovery procedure to the digital level – Falk said.

Ministarstvo finansija Republike Srbije

Global Blue

Ministry of Finance

Siniša Mali

VAT recovery for foreign tourists

Birgitta Falk