As previously reported, the Law on the Tax on Greenhouse Gas (GHG) Emissions and the Law on the Tax on Import of Carbon-Intensive Products were adopted at the end of 2025 and have applied since 1 January 2026.

These laws introduced a new emissions taxation system covering, on the one hand, domestic producers operating in certain industrial sectors and, on the other, importers of certain carbon-intensive products.

In July 2026, a set of secondary legislation was adopted laying down key elements for the practical implementation of this system.

Two rulebooks issued by the Ministry of Environmental Protection were published in the “Official Gazette of the RoS” No. 62/2026 and establish reference emissions values for domestic production processes and activities, as well as reference and default CO₂eq emissions values for products subject to the tax on import of carbon-intensive products.

Three rulebooks issued by the Ministry of Finance were published in the “Official Gazette of the RoS” No. 65/2026 and regulate tax returns, the exercise of tax credit entitlements, the content and maintenance of records on financial investments in measures to reduce CO₂eq emissions, and the documentation required to verify payments made in the country of origin.

The exchange of data between the Customs Administration and the Tax Administration has also been regulated.

What is subject to tax?

Domestic producers in the covered sectors — including the production of cement, iron and steel, aluminium, fertilisers and electricity — are subject to tax on GHG emissions from their installations.

For imports, the tax applies to carbon dioxide emissions associated with the production of certain carbon-intensive products falling within the categories of iron and steel, cement, fertilisers and aluminium.

Reference values for domestic producers

One of the key elements of the new system is the reference emissions values established by The Rulebook on Reference Values for Greenhouse Gas Emissions for Production Processes and Activities in Connection with the Tax on Greenhouse Gas Emissions (the “GHG Emissions Reference Values Rulebook”).

 As the taxable base is determined by reducing the taxpayer’s total emissions by the reference quantity of emissions corresponding to the relevant production process or activity, the GHG Emissions Reference Values Rulebook now sets out reference values for a number of production processes, including the production of grey and white cement clinker, pig iron in blast furnaces, carbon steel in electric arc furnaces, and primary aluminium. For production processes for which no specific reference value has been established, the values applicable to fuel combustion are used.

Specific rules also apply to installations in which multiple production processes are carried out, including situations where the output of one process constitutes an intermediate product for another process. These rules are intended to prevent the double counting of reference emissions.

Default values for imports

Of particular importance for importers is the second rulebook issued by the Ministry of Environmental Protection — The Rulebook on Reference Values and Default Values of CO₂eq Emissions — which establishes reference and default CO₂eq emissions values for products subject to the Law on the Tax on Import of Carbon-Intensive Products (the “Law”).

The Law provides for two methods of determining the taxable base for an individual product.

The first is based on the actual amount of CO₂eq emissions generated in the production of the imported product, as confirmed in a verifier’s report, reduced by the applicable reference quantity of emissions.

The second method applies where the verifier is unable, for any reason, to confirm the actual emissions. In that case, the emissions are determined on an estimated basis by applying the relevant default emissions value to the quantity of the imported product.

For individual products, the Rulebook sets out reference values and gross default values according to their customs tariff codes. The default value used for tax calculation is determined as the difference between the gross default value and the applicable reference value. Where the result is negative, the default value is deemed to be zero.

This enables importers to determine in advance the key parameters for calculating their tax liability for a particular product, even where actual emissions data from the producer are unavailable or cannot be verified.

This is particularly important for importers, as they can now determine in advance which emissions value will be relevant for calculating the tax on a particular shipment based on the applicable customs tariff code.

Five-tonne threshold

No tax on imports of carbon-intensive products is payable where an importer imports less than five tonnes of covered products during a tax period.

Importers should therefore monitor the aggregate quantities of covered products imported during the relevant tax period, as well as their customs tariff codes, as these data may be decisive in determining whether a tax liability arises.

Tax Returns and Tax Credits

The July rulebooks issued by the Ministry of Finance also regulate the forms and manner of filing tax returns for the GHG emissions tax and the tax on imports of carbon-intensive products. Tax returns are filed electronically by 31 May of the current year for the preceding tax period.

The laws provide for the possibility of claiming a tax credit on two grounds.

In relation to the GHG emissions tax, a taxpayer may claim a tax credit if it meets the conditions prescribed by law and invests financial resources in measures and activities aimed at reducing CO₂eq emissions. The tax credit amounts to 20% of qualifying investments, but may not exceed 80% of the tax liability determined for the relevant tax period. The Rulebook on the Form, Content and Manner of Filing the Tax Return for the Greenhouse Gas Emissions Tax, the Manner of Exercising the Right to a Tax Credit, and the Form, Content and Manner of Maintaining Records of Financial Resources Invested in Measures to Reduce Carbon Dioxide Equivalent Emissions (CO₂eq) further regulates the manner of recording such investments and the documentation to be submitted in order to exercise the right to the tax credit.

In relation to the tax on import of carbon-intensive products, the tax credit is intended for situations where an amount corresponding to the CO₂eq emissions associated with the imported product has already been paid in the country of origin, i.e. country of production. Subject to the conditions prescribed by law, the importer may take the amount already paid into account when determining its tax liability in Serbia, thereby preventing the double taxation of the same emissions. To exercise the right to the tax credit, the importer must provide appropriate documentation proving that the payment was made, the product and quantity of emissions to which the payment relates, as well as the amount paid. The Rulebook on the Form, Content and Manner of Filing the Tax Return for the Tax on Imports of Carbon-Intensive Products, the Manner of Exercising the Right to a Tax Credit, the Manner of Calculating the Amount of the Tax Credit and the Documentation Required for Verification of Payment in the Country of Origin regulates in greater detail the required documentation and the manner of calculating this tax credit.

Data exchange between the Customs Administration and the Tax Administration

Another important development for importers is the Rulebook on the Deadlines and Data to be Submitted by the Customs Administration to the Tax Administration under the Law on the Tax on Import of Carbon-Intensive Products.

The Customs Administration is required to provide the Tax Administration electronically with data from the Single Administrative Document relevant to the application of the Law. These data include, among other things, the customs tariff code, description and quantity of the goods, country of origin, customs value of the goods and importer details.

This mechanism means that the Tax Administration will have direct access to import data derived from customs declarations. It is therefore particularly important for importers to ensure consistency between the information contained in their customs documentation and their tax returns.

What companies should do

With the adoption of the July rulebooks, the secondary legislation necessary for the implementation of both tax regimes is now in place. Companies should therefore:

Domestic producers – identify the applicable reference emissions values, compare them with their verified emissions, and assess whether they meet the conditions for claiming a tax credit.

Importers – verify whether their products fall within the scope of the regime and whether the five-tonne threshold is met; identify the applicable reference and default emissions values; and ensure that the documentation required for the calculation of the tax and any applicable tax credit is available.

The key priority for companies is to determine in good time whether they fall within either of these regimes and to align their operations, with the now-complete regulatory framework.

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