Parents deceived prior to the election?

The news that the Tax Administration has increased the amount against which parents, who bought baby equipment and food, can claim a VAT refund is only a marketing trick and not realistic.

The increase (2,250 dinars) is not small but nothing will come off it. The previous deadline for submitting the request for a refund was 15th February, and that was the last refund that will be paid out. According to the Law on Financial Support for Families with Children, the VAT refund on baby equipment and food will be abolished on 1st July.

Yesterday, the Tax Administration informed the media that, in accordance with the amendments to the Law on Value Added Tax, parents will be able to get a VAT refund in the amount of up to 77.279 dinars for a child under two years of age.

Prior to the increase, the maximum amount that parents could be reimbursed for was 75,029 dinars. In addition, the Tax Administration informed the parents that it had extended the eligibility criteria so now those parents who earn up to 1,059,839 dinars annually and whose tax on total assets amounts to under 25,833,585 dinars can also get a VAT refund on baby food and equipment.

The Danas daily contacted the PR service of the Tax Administration demanding an additional explanation on the refund increase, but got no reply as yet.

Given that the last deadline for VAT refund has expired, it is obvious that the new increase will not have any effect whatsoever and that media reporting about this had one purpose only and that is gaining political points considering that the election in Belgrade is only five days away.

As of 2013, the state authorities have been refunding VAT on baby equipment and food twice a year – once in February and once in July.

“We called the Tax Administration several times and each time we were told that no refund will be paid out after February. However, parents have been constantly calling us and asking what is happening, because they interpreted the increase as a hint that the VAT refund practice will continue.  We insist that the Tax Administration provide us with their final answer”, says Jasmina Mihnjak, editor of the portal

(Danas, 28.02.2018)


This post is also available in: Italiano

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