Serbia, IT group-future big export potential, reduction of VAT on software and hardware from 18 to 8%?

Representatives of information and communications technology sector (ICT) ask from Government of Serbia to reduce value added tax on hardware and software from 18 to 8%, as well as to, having other countries for model, start treating this activity as production activity and not service-provision one.

Reduction of VAT would be very significant for development of computer science in Serbia together with already planned stimulation in amount of 4.5% for software, as well as for hardware that is placed on the export-stimulation list for the first time in 2005, which will be applied until SCG joins World Trade Organization WTO. By the way, 15 millions EUR was earned from the export of IT equipment in 2004, whereas export in 2003 was worth 10.5 million USD.

Real opportunity for new representation of IT capabilities will be Cebit Fair in Hannover, named IT-outsourcing (March 10-16), where 10-member Serbian team will appear - Institute Mihailo Pupin, MFC Mikrokomerc, Perihard inženjering, Serbian Object laboratories, Iritel, Saga, Telefonija, Eversoft, Veridiks and Pupin Telekom.