As of January 1st 2026, two new tax laws introducing a carbon taxation framework have become applicable in Serbia for the first time: Law on Tax on the Import of Carbon-Intensive Products; and Law on Tax on Greenhouse Gas Emissions.
The new framework represents Serbia’s response to the European Carbon Border Adjustment Mechanism (CBAM), with the objective of ensuring that both domestic producers and importers bear a cost in respect of CO2 emissions arising from production.
Potential taxpayers
Tax on the Import of Carbon-Intensive Products – any person importing into Serbia, in its own name and for its own account (or through an indirect customs representative), goods falling within the categories of iron and steel, cement, fertilisers or aluminium, based on the tariff codes prescribed by law. A person is not considered a taxpayer where the total quantity of such goods imported during the relevant tax period is less than five tonnes.
GHG Emissions Tax – legal entities or entrepreneurs which, as operators of installations, are required to hold a greenhouse gas emissions permit and carry out one of the following activities: production of fertilisers and nitrogen compounds, cement, pig iron/steel/ferroalloys, aluminium, or electricity generation.
Tax base and calculation of the tax
Tax on the Import of Carbon-Intensive Products – the actual or estimated quantity of CO2 equivalent (CO2eq) emissions attributable to the carbon-intensive product.
GHG Emissions Tax – the difference between the total quantity of GHG emissions generated by the taxpayer during the calendar year across all installations and the reference emissions, i.e. emissions exceeding the prescribed standard.
In both cases, the tax base is expressed in tonnes of CO2 or tonnes of CO2 equivalent (CO2eq). The tax payable is calculated by multiplying the tax base by EUR 4 per tonne, converted into RSD at the National Bank of Serbia (NBS) middle exchange rate applicable on the last day of the relevant tax period.
At the end of July 2026, the Ministry of Finance published two rulebooks providing for the practical implementation of these laws. Both rulebooks entered into force on July 23rd 2026:
Rulebook on the Tax Return for the Tax on the Import of Carbon-Intensive Products
The tax return is filed using Form PP UUIP and must be accompanied by an annex providing an overview of imported products by supplier and tariff code. In this case, a tax credit is available in respect of the cost of emissions already paid in the country of origin, provided that the taxpayer submits appropriate supporting documentation (an emissions verification report and confirmation from the competent foreign authority evidencing payment), together with a separate calculation of the tax credit.
Rulebook on the Tax Return for the GHG Emissions Tax
The tax return is filed using Form PP EGESB and must be accompanied by a verified emissions report and separate installation-specific forms used to determine the total taxable quantity of CO2eq. Unlike the import tax, the tax credit in this case is not linked to a price paid elsewhere, but exclusively to the taxpayer’s own investments in emission reduction measures. Accordingly, the taxpayer is required to maintain separate records of investments by project and submit, together with the tax return, an analytical overview of investments and a calculation of the tax credit claimed.
For both taxes, the tax period is the calendar year. Accordingly, the tax return must be filed by May 31st of the current year for the preceding year, with the assessed tax payable by the same deadline.
The tax period differs from the calendar year in cases of commencement or cessation of business activities during the year, status changes, or the initiation, suspension or completion of bankruptcy or liquidation proceedings.