Pursuant to the Electronic Invoicing Law, the electronic invoice represents a request for payment on the grounds of transactions with compensation, same as any other document which influences the payment and the amount of payment, invoice which is issued for turnover without compensation, as well as received advances, which is issued via the system of electronic invoices. To put it simply, electronic invoices are those invoices that are issued, received, and processed only and explicitly electronically.
The obligation of issuing electronic invoices exists only for private and public sector entities, on the grounds of mutual transactions, as well as for the VAT of attorneys of foreign entities who are registered for VAT in the Republic of Serbia, on the grounds of transactions with entities from the private and public sector.
The Law also foresees certain exceptions from the obligation of issuing an electronic invoice. So, the obligation of issuing electronic invoices does not exist for:
1. retail turnover and received advance for retail turnover pursuant to the Law on Fiscalization;
2. a contractual obligation directed towards service users from international framework agreements
3. procurement, modernization, and repair of weapons and military equipment, procurement of security-sensitive equipment, as well as related procurements of goods and services.