Freelancing in Serbia: the self-taxation regime, two quarterly tax models, and the RSD 8,000,000 VAT threshold

Freelancing in Serbia splits into two very different tracks, and picking the right one matters. If you run a registered activity you may operate as a preduzetnik (sole trader), often on the flat-rate paušal basis. But many freelancers — especially those paid by foreign clients who do not withhold Serbian tax — instead use the self-taxation regime run through the Tax Administration's dedicated portal.

The self-taxation regime

Self-taxation (samooporezivanje) means the Tax Administration does not issue an assessment for you: you calculate, report and pay tax and contributions yourself. It applies to income paid by a person who does not withhold Serbian tax and contributions — typically a legal entity, entrepreneur or individual abroad, or a domestic individual. You register on the official portal www.frilenseri.purs.gov.rs and file a quarterly return (PP OPO-K). Income paid by a domestic company or registered entrepreneur is handled by that payer instead and does not go through this portal.

Two tax models, chosen every quarter

Each quarter you choose the model that costs you less. Model A taxes your quarterly gross income minus a fixed standardised deduction (RSD 110,647 for 2026) at 20%. Model B taxes your quarterly gross minus RSD 66,733 minus 34% of gross at 10% — better for higher earners because the deduction scales with income. You can pick Model A one quarter and Model B the next; there is no requirement to keep the same model all year.

Social contributions

On top of income tax you pay mandatory social contributions on the same taxable base: pension and disability insurance at 24% and health insurance at 10.3%. The health contribution is subject to a quarterly minimum (around RSD 4,789), so even low-income quarters carry a floor. These contributions build your Serbian pension and health entitlements.

VAT and e-invoicing

VAT registration becomes mandatory once taxable turnover exceeds RSD 8,000,000 over any 12-month period; below that it is voluntary. Once you are in the VAT system, you must issue and receive electronic invoices through SEF (Sistem za elektronske fakture) — Serbia's e-invoicing platform, mandatory for VAT-registered taxpayers since 2023, with further tightening for tax periods from 2026. Keeping clean quarterly records makes both the self-taxation return and any move into VAT far smoother.

General information about freelancing in Serbia, current as of the review date above, and not tax advice. Thresholds, deductions and rates change — confirm current figures with the Serbian Tax Administration (Poreska uprava, purs.gov.rs) or a qualified accountant.