Economic experts agree that e-invoices are a tool for modernizing the Serbian economy. The new functionalities of the Electronic Invoice System (SEF) have significant potential to help modernize Serbia’s tax system.
The development of SEF not only simplifies business operations but also contributes to more transparent and efficient fiscal management.
Prominent economists have highlighted the benefits and macroeconomic effects of this system, while also discussing the challenges in its implementation process.
Professor Ljubodrag Savić from the University of Belgrade’s Faculty of Economics believes that the digitalization of Serbia’s tax system brings significant advantages for both the economy and the state. “There is no doubt that digitalizing the tax system in Serbia will greatly ease, accelerate, and simplify the overall operation of Serbian businesses. It will allow the government, ministries, and the Tax Administration to maintain more complete records of business operations and better control tax obligations, which will aid in the planning and management of Serbia’s budget revenues and expenditures. Businesses will benefit greatly as well, as it will simplify and speed up operations, while enabling more precise planning and monitoring of cash flows,” explains Savić.
However, the implementation process is not without challenges, as many companies still lack the necessary level of digital literacy, according to Professor Savić. A regular improvement of the system and its adaptation is key to overcoming initial issues.
On the other hand, Professor Bojan Dimitrijević emphasizes that Serbia is one of the first countries to introduce the automation of tax return preparation in this way, bringing both advantages and challenges.
“There are no comparable solutions from other countries yet, as Serbia is a pioneer in this process compared to the European Union. Full synchronization between the solutions proposed by tax experts and their technical application within IT, software, and digital solutions is certainly needed,” says Dimitrijević.
He also warns about the importance of synchronization between experts and technical solutions, adding that the government has extended the implementation deadlines. However, excessive delays could jeopardize the credibility of the process.
“It is crucial to maintain a balance between flexibility and determination in applying solutions,” he stresses.
According to Professor Hristina Mikić from Metropolitan University, the importance lies in the automation of processes through e-invoices, especially concerning VAT.
However, she also points out that “on a macroeconomic level, e-invoices stimulate economic competitiveness by reducing transaction costs and increasing operational efficiency.”
Additionally, the availability of real-time data provides policymakers with a more detailed insight into fiscal flows, which can help in forming more appropriate economic policies. Various studies have quantified the economic effects of e-invoicing.
“For instance, the U.S. Department of the Treasury estimates that electronic invoicing reduces billing costs by 5%, or about $450 million annually, and that invoice collection time is reduced from an average of 17 days to 3 days. If a company receives around 20,000 invoices annually, the system can help save €70,000, and it is estimated that manual invoice processing costs between €7 and €50 per invoice,” explained Mikić.
The digitalization of Serbia’s tax system represents a step toward modernizing and improving the efficiency of the economy. The introduction of e-invoices brings many benefits, but it also requires further work on educating businesses and aligning technical solutions. With effective implementation and continuous improvement, digitalization has the potential to become the foundation for the future development of the Serbian economy.
