Imagine this: you live as a digital nomad, working online, sending invoices, paying taxes, and spending most of the year abroad. Sounds like a dream, right? But wait, the Serbian Tax Administration doesn’t think so! Yes, dear entrepreneurs, physical distance from Serbia does NOT free you from tax obligations. What happens if a tax inspector decides to audit you while you’re lounging on some exotic beach? Well, no excuses! The Law on Tax Procedure and Tax Administration (ZPPA) clearly states that you must participate in the audit and provide access to your business books and documentation. Can’t attend in person? No problem, just authorize someone else – usually your accountant – to represent you. But if you’re a flat-rate taxpayer without an accountant, things get dramatic: you must return to Serbia or risk serious consequences!
And don’t think inspectors will wait for you! The audit is not postponed due to your absence, and if you try to obstruct the audit, it will be recorded in the report. Inspectors can request documentation from other persons, including employees, meaning bigger companies have nowhere to hide.
Most audits focus on fiscal devices – checking if all sales are registered, daily takings deposited, employees registered, and goods documented. If irregularities are found, penalties are harsh: business suspension for up to 15 days for the first offense, and for the third offense within 24 months, even harsher sanctions may apply.
The law clearly states that the taxpayer must prove the correctness of their business, while inspectors must carefully consider all facts, whether in favor or against the taxpayer. So, dear digital nomads, you can’t hide behind your screen and beach – the tax administration is watching and waiting to catch you slipping!
If you’re already abroad and get a call for an audit, immediately contact the inspector and submit a written request to postpone the audit within 24 hours. But don’t expect it to always work – the inspector has the right to assess the motives and decide whether the audit will proceed.
So, if you thought the digital nomad life was carefree and tax-free, think again! The Serbian Tax Administration is wide awake, and you better have a good accountant or a plan B. Now, while you’re thinking about this, drop a comment – have you ever faced a tax audit while abroad? Or know someone who has? Let’s chat, because this topic is pure drama for all of us who love working from anywhere but hate paying fines!
