Serbia's Tax Administration has expanded its VAT reciprocity arrangements to include France, Bulgaria, Luxembourg, and Sweden, bringing the total number of countries with reciprocal VAT refund agreements to 21 as of 2026.

Under Article 53 of Serbia's VAT Law, foreign businesses can only reclaim Serbian VAT if their home country provides equivalent refund opportunities to Serbian companies. The four newly added countries joined the reciprocity list with effective dates spanning from August 2025: Bulgaria (August 21), France (August 18), Sweden (August 15), and Luxembourg (August 13).

Foreign businesses from reciprocity countries can reclaim Serbian VAT incurred on qualifying expenses including business travel, trade fair participation, and local service purchases, subject to meeting all legal requirements and applicable deadlines. The expansion provides Serbian companies with corresponding VAT refund access in the four new partner countries under their respective domestic procedures.

Serbia's VAT reciprocity network now encompasses major EU markets alongside existing partners including Germany, the Netherlands, Austria, Croatia, and the United Kingdom. The gradual expansion of reciprocal arrangements reflects Serbia's integration efforts with EU tax systems and supports cross-border business operations by reducing VAT compliance barriers for qualifying foreign enterprises.