Two limits, two different periods
A paušalac in Serbia has to watch two numbers. They are counted over different periods, and that is where most mistakes happen.
8,000,000 RSD in the last 12 months: VAT
The 6,000,000 RSD paušal limit
Paušal cannot be granted to an entrepreneur whose turnover in the year before the tax year was above 6,000,000 RSD. A new business is judged by its planned turnover (Art. 40 of the income tax law). So the turnover of one year decides whether paušal is possible in the next one.
Income taxed as other income because the independence test failed does not count toward this limit (Art. 40). If you want paušal for the next year, the request is filed by 31 October of the current year, electronically through the Tax Administration portal. A new entrepreneur asks for it when registering with APR (Art. 42).
Turnover is not the only condition. The law also leaves out some activities and situations, for example advertising and market research, wholesale and retail trade, hotels and restaurants, financial intermediation and real estate, with some exceptions for kiosks and mobile units, plus businesses where others invest and VAT payers (Art. 40).
What if you pass 6,000,000 RSD during the year?
The law does not spell this out. It says that when the conditions for paušal stop being met, paušal applies until the Tax Administration establishes this, and that the Tax Administration then orders bookkeeping by a decision, either from the middle of the current year or from the start of the next year (Art. 42).
Some websites describe a rule by half year. We did not find it in the law or in an official opinion, so do not rely on it without asking your accountant or the Tax Administration.
From 1 January 2027, an entrepreneur who loses paušal and has to keep books can choose a personal salary (lična zarada). The notice is due within 15 days from losing paušal (Art. 33a, amendment 80/2026).
The 8,000,000 RSD VAT threshold
This limit is in the VAT law and applies to every entrepreneur, paušalci included. It is counted over the previous 12 months, not over the calendar year. If your total turnover in the previous 12 months is above 8,000,000 RSD, you must file the VAT registration within 5 days from the day you reached it (VAT law Art. 33 and 38).
A paušalac who becomes a VAT payer can no longer be on paušal and must keep books from the day of becoming a VAT payer at the latest, without a separate decision (income tax law Art. 40 and 42).
For this limit, total turnover means your taxable supplies and the supplies exempt with the right to deduct, without the sale of equipment and business premises. Supplies made abroad are not part of it (VAT law Art. 28 and 33).
What the law does not say clearly
- Foreign clients and the 6,000,000 RSD limit. The income tax law does not say explicitly whether turnover from foreign clients counts, or whether turnover is counted by invoice date or by payment. The tool counts everything you enter.
- Services to foreign clients and VAT. By the text of the VAT law, supplies made abroad are not part of total turnover, so services to foreign clients may fall outside the 8,000,000 RSD count. Whether that is true for your services depends on the case, so confirm it with an accountant.
- Counting the 12 months. The VAT law speaks of the previous 12 months but does not say exactly how to count the days. The tool adds up whole calendar months, so near the limit, check your invoices day by day.
- Passing 6,000,000 RSD during the year. As above, the law leaves the timing to a decision of the Tax Administration.
The independence test
If you work for one client in a way that looks like a job, the income from that client can be taxed as other income instead of as paušal income. The law lists 9 criteria, and the test fails when 5 or more are met. Then the taxable amount is the gross income without standard costs and the tax rate is 20%, and contributions are also due under a separate law (income tax law Art. 85 and 86). Go through the criteria in the Independence test tab above.
FAQ
Is this tax advice?
No. The tool adds up the numbers you enter and shows what the laws say, as we checked them in October 2026. Your case can depend on details the tool does not see, so check with an accountant or the Tax Administration before you decide.
Which amounts should I enter?
The turnover you invoiced in each month, in dinars. If part of it was for services to foreign clients, tick the option above the table and enter that part under each month. Ask your accountant how to count your own case, especially for foreign clients and for invoices paid in a later month.
Are my numbers saved?
Only if you tick Remember my numbers on this device. They are then saved in this browser (localStorage) and are never sent. Untick the box to delete them. Without the tick, they are gone when you close the page.
Why does the tool count by months?
Most people track turnover by month, and the law does not say exactly how to count the 12 months. Monthly totals cannot show the exact day you passed a limit, so when you are close, look at the invoices themselves.
Sources: Zakon o porezu na dohodak građana (Art. 33a, 40, 42, 85 and 86) and Zakon o porezu na dodatu vrednost (Art. 28, 33 and 38), consolidated texts on paragraf.rs, a private legal database, and the amendment 80/2026 of the income tax law as adopted by the National Assembly. Checked in October 2026. Not tax advice. The tool only uses what you enter and sends nothing.