On 28 September 2026, the Serbian Government adopted a new Regulation on the Classification of Activities (“Uredba o klasifikaciji delatnosti”), replacing the previous 2010 version. This regulation aligns Serbia’s National Classification of Activities (NKD) with the European Union’s NACE Rev. 2.1 standards, ensuring harmonization with EU statistical and regulatory frameworks. The new classification introduces updated codes for emerging sectors such as digital platform services, green energy production, and advanced manufacturing, while restructuring existing categories to reflect modern economic realities. The regulation enters into force on 1 January 2027, with a transitional period allowing businesses to use both old and new codes until 31 December 2027 for statistical reporting purposes. However, for tax registration and licensing, the new codes become mandatory immediately upon the regulation’s effective date. The Ministry of Finance and the Business Registers Agency (APR) have issued accompanying guidelines detailing the mapping between old and new codes, sector-specific implications, and procedural steps for updating registration data.
Key Takeaways
- Mandatory Code Migration for Tax and Licensing: All registered entities must update their predominant activity code (pretežna delatnost) in the Business Registers Agency (APR) database by 31 January 2027 to reflect the new NKD 2026 classification. Failure to update may result in misapplication of tax incentives, sector-specific VAT rates, or licensing requirements.
- Impact on Tax Incentives and Statistical Compliance: The reclassification directly affects eligibility for corporate income tax incentives (e.g., R&D deductions, investment credits), customs duty exemptions, and subsidy programs tied to specific activity codes. Companies must reassess their qualification under the new codes to avoid inadvertent loss of benefits or erroneous claims.
- Transitional Reporting Flexibility with Strict Deadlines: While statistical reporting allows dual-code usage throughout 2027, tax authorities expect immediate alignment for VAT grouping, transfer pricing documentation, and withholding tax determinations. Multinational groups should coordinate code updates across Serbian subsidiaries to maintain consistent transfer pricing comparability analyses.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement