On 31 August 2026, the Serbian Tax Police (Poreska policija) announced the detention of three individuals suspected of orchestrating a systematic tax evasion and fraud scheme that caused budgetary damage exceeding 39 million Serbian dinars (approx. EUR 330,000). The operation, conducted in coordination with the Higher Public Prosecutor’s Office, targeted a network that allegedly falsified invoices, underreported taxable turnover, and manipulated VAT credit claims across multiple shell companies in the construction and wholesale trade sectors. The investigation, spanning over 18 months, utilized forensic accounting, digital evidence from the e-Invoicing platform, and controlled delivery techniques.
Key Takeaways
- Scheme Mechanics: The group created a circular invoicing chain among connected entities to artificially inflate input VAT credits while suppressing output VAT liabilities. They also exploited the simplified taxation regime for small entrepreneurs by fragmenting revenue streams across numerous registered individuals who acted as nominal owners.
- Enforcement Escalation: This case signals an intensified reliance on the Tax Police’s expanded powers under the 2024 amendments to the Law on Tax Police, including the authority to conduct dawn raids, seize electronic devices, and freeze bank accounts ex parte. The detainees face charges under Article 225 of the Criminal Code (Tax Evasion) and Article 245 (Fraud), carrying potential sentences of up to 10 years imprisonment.
- Compliance Signal: The Tax Administration emphasized that the e-Invoicing system’s real-time data analytics were pivotal in detecting anomalies. Businesses are reminded that automated cross-checks between issued/received invoices, VAT returns, and customs declarations are now standard audit triggers, making manual manipulation increasingly detectable.
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