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THE MOST SIGNIFICANT AMENDMENTS TO ACCOUNTING LAW

On October 10, 2019, the National Assembly of the Republic of Serbia held its session at which the Bill on Accounting was adopted. The new law defines who may provide accounting services and how a legal entity can acquire a professional title. As a result, the Law on Accounting was adopted and published in the Official Gazette of RS no. 73/2019.

The new Accounting Act will enter into force on January 1, 2020. Some provisions require a later start of application.

REGISTER OF ACCOUNTING SERVICE PROVIDERS

One of the changes introduced by the new Accounting Act concerns the introduction of "professional titles". In order for legal entities to continue to provide accounting services, they have an obligation to acquire professional titles. Under the new Accounting Law, a "professional title" is a requirement for a license to provide accounting services. Once an accountant has acquired a professional title, he is no longer required.

Accounting service providers, ie entrepreneurs and legal entities providing accounting services to their clients, must also be entered in the Register of Accounting Service Providers.

The accounting records and the preparation of the final accounts (financial statements at the end of the business year) can only be carried out by the accounting agencies registered in the said Register.

The Register of Accounting Service Providers will be operational from January 1, 2021, and the Agency for Business Registers will be in charge of keeping it. Before the Registry becomes operational, legal entities carrying out accounting activities cannot be registered in the same, that is, they cannot be conditioned by entry in the Register which does not exist. This applies to both existing firms and accounting agencies to be set up during 2020.

CONDITIONS FOR OBTAINING A LICENSE TO PROVIDE ACCOUNTING SERVICES

In the Republic of Serbia, licenses for providing accounting services to legal entities are issued by the Chamber of Certified Auditors and the Association of Accountants and Auditors of Serbia.

From 1 January 2020 the license shall be issued under the following conditions:

that the legal entity has a registered predominant activity for providing accounting services,
that the founder of the legal entity, ie the beneficial owner, as well as a member of the management body of the legal entity has a registered predominant activity for providing accounting services (and that they have not been convicted by a final judgment for criminal offenses),
that the legal person has at least one employee with a professional title in the field of accounting or auditing (that he is employed and full time),
that the professional title is acquired from a professional organization that is a member of the International Federation of Accountants.
The application of this regulation will commence by 1 January 2023 at the latest.

DEADLINE FOR SUBMISSION OF ACCOUNTING DOCUMENTS

The deadline for submission of accounting documents for posting is five days from the day when the business change occurred, that is, from the date of receipt.

ELECTRONIC FORM INVOICE

The obligation to issue invoices (invoices) in electronic form will be effective from January 1, 2022.