Registration of Business Premises to the Tax Administration

In accordance with Article 25 of Law on Tax Procedure and Tax Administration, which stipulates that taxpayers have the obligation to report to the Tax Administration data on all business premises in which they store or house goods, as well as on premises in which they perform their business activities, the Minister of Finance on December the 24th of 2022 adopted the Rulebook on the procedure, manner, deadlines, contents and form of the tax declaration by which the taxpayer declares business premises in which he stores or places goods, as well as the premises in which he carries out business activities (hereinafter the Rulebook) which Rulebook began to apply on January the 24th of 2023.

The aforementioned Rulebook stipulates that the tax declaration must be submitted electronically on the EP IPP form before the start of using the space, as well as that tax declaration must be submitted for each space and room separately. In the case of change in the stated data, the new declaration needs to be submitted no later than 24 hours before the change occurs, unless the changes are the result of circumstances that do not depend on the will of the taxpayer, when the obligation to submit the declaration is no later than 24 hours after learning of the change. Tax payers dont have the obligation to submit an tax declaration for business premises located at the registered seat of the legal entity or enterpreneur, i.e. residence of a natural person, as well as for business premises that have already been registered to the Tax Administration in accordance with other regulations.

The same Rulebook stipulates that a taxpayer who rents his space to another taxpayer is obliged to register the space for the performance of the rental activity, while the lessee is obliged to register the rented space for the performance of his activity.

A taxpayer who places goods of other natural persons or legal entities, about which he keeps records in his business books, in his warehouse is obliged to register that business premises or a part of business premises as a warehouse.

For taxpayers who did not report data to the Tax Administration or who reported incomplete or incorrect data and started using business premises the Rulebook prescribed the deadline of January the 29th of 2023 to submit the EP IPP tax declaration.

It is important to ephasize that tax declaration cannot be submitted after the initiation of the tax control procedure, nor after the initiation of the actions of the Tax Police in order to detect tax crimes, and the Law on Tax Procedure and Tax Administration in Article 176a paragraph 2 stipulates that a person who stores or places goods in premises about which he hadnt notified  Tax Administration will be punished with a prison sentence of three months to three years and fine.

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