Ecommerce in Serbia

E-commerce in Serbia has seen remarkable growth, especially in recent years. Even before the COVID-19 pandemic, online shopping was on the rise. A 2019 report by the Bureau of Statistics of Serbia indicated a 33% increase in online shoppers, with over 1.8 million citizens purchasing goods and services online, a jump from 1.2 million in 2018. Popular purchases included clothing, electronics, and tickets for cultural events. Despite this, many Serbian consumers still preferred offline payment methods, such as cash-on-delivery, at that time.

The global pandemic, however, catalyzed a more profound shift in consumer behavior, propelling e-commerce to new heights. From March to July 2020, e-commerce activity in Serbia doubled compared to the same period in 2019. This surge helped to break down consumer hesitancy towards online payments, which had been a barrier in earlier years.

By 2023, Serbia's e-commerce market continued to expand, with revenues expected to reach $936 million by 2024, representing a strong annual growth trajectory. Key product categories included electronics, fashion, and groceries, with mobile commerce and social media increasingly playing pivotal roles in shaping shopping habits. Major e-commerce platforms reported significant revenue growth, reflecting the larger digital shift.

The timely 2019 amendments to Serbia’s Law on Electronic Commerce (“E-Commerce Law”) proved crucial in supporting this transformation. These changes created a legal framework that could accommodate the rapid growth in e-commerce, and the pandemic served as a test case for the law’s adaptability. With continued expansion, e-commerce in Serbia is projected to remain a relevant driver of the economy.

Foreign entities are permitted to offer goods or services to Serbian consumers without establishing a local presence. For foreign companies seeking to establish a more permanent presence, they are free to create a local branch or entity, regardless of whether their sales occur online or in physical stores. 

Nevertheless, companies that operate from abroad may be subject to certain tax obligations, such as VAT registration. In some instances, appointing a VAT attorney or representative may be necessary even in the absence of an established local entity. This ensures compliance with Serbian tax laws, particularly in cases where the scope of activities triggers local tax liabilities.

Generally, no specific licenses or permits are required for companies to establish an online presence in Serbia. However, there are exceptions depending on the type of products or services being offered. For instance, businesses selling regulated items like dangerous chemicals must obtain the appropriate permits. Similarly, conducting online gambling requires a concession or permit for organizing games of chance.

Even if e-commerce is only an extension of the bricks-and-mortar activity, and the business already has various supply and logistics contracts in place, there are some specifics for setting up an e-commerce platform that should require consideration.

• Domain name: The domain name serves as an address for the e-commerce business. A wide choice of domain extensions is available, both national (.rs), and international, more suitable for cross-border activity (such as .com). It is also possible to offer goods via marketplaces.
• Hosting services: Sourcing hosting services is a more complex process as there are various options. Hosting services can be acquired in particular as cloud servers, shared webhosting, virtual private servers and dedicated servers.
• IT-related services: A smooth ordering process is one of the key elements of creating a good customer experience. To achieve this, the e-commerce business has to ensure an appropriate level of IT services.
• Creative services: Sourcing creative services is required to set up a website, including both design and the technical aspects of various applications and functionalities, such as invoicing, accounting, marketing tools and customer relationship management.

• Logistics: Logistics is the backbone of a successful e-commerce business. The logistics processes include in particular product sourcing, stock (inventory) management, order management, packaging and delivery, as well as management of (and sometimes picking up) product returns.
• E-commerce logistics may also be outsourced to a third-party logistics provider. A new alternative to the traditional logistics chain is dropshipping. In this model, the e-commerce entity forwards customers’ orders to another company, which fulfils the orders by shipping the items directly to the customer on behalf of the e-commerce entity.
• Payments: Cash on delivery remains a popular payment method; however, a wide array of electronic and non-cash payments are also available to e-commerce businesses. These include payments by various types of credit and debit cards, quick online transfers, electronic wallets, mobile money, and alternative currency payment processors.

Specific restrictions apply concerning products and services that are restricted or banned for sale in Serbia. Such goods may not be sold, including illegal drugs and unregistered firearms.

The second set of restrictions pertains to the sale of certain goods that can only be bought and sold by licensed or approved entities, such as explosives, specific chemicals, radioactive materials, and similar products.

The third category includes products that require licensing or inspection, such as medicines, supplements, or similar items, which need prior approval from an inspector or agency before they can be sold in Serbia.

Additionally, restrictions apply to products such as alcohol, which require verification that the buyer is over 18 years old; this requirement may pose practical enforcement challenges.

There is no specific obligation; however, if the e-commerce website targets consumers, it is essential to ensure that all consumer rights are upheld. This is significantly different from B2B relations, as every aspect of the transaction must ensure that crucial information and all consumer rights are respected both before and after the contract is concluded, particularly concerning product returns, liability for defective goods, and similar matters.

Conversely, if a website is dedicated solely to businesses, such as one selling equipment exclusively to professionals, consumer regulations will not apply. In this case, it must be ensured that the online store is accessible only to professionals, which can be challenging. This is especially true when the e-commerce website is established as an entity abroad, as such barriers may conflict with or complicate compliance with personal data protection laws.

 The law does not impose any restrictions on the content or layout of an e-commerce website. However, it does establish several requirements concerning the information that must be provided to the buyer before the purchase contract is concluded. This information includes:

1. the procedures envisioned when concluding the contract;
2. contractual provisions;
3. general business terms/conditions, if they are an integral part of the contract;
4. languages offered in which to conclude the contract;
5. codes of conduct in accordance with which service providers act and how these codes can be reviewed electronically;

 The e-commerce business is also obligated to provide technical means for all potential consumers/users to view the entered data and correct any errors before submission.

Thus, despite nearly complete freedom in website design, it is necessary for a website to provide the stated necessary information to the consumer as well as any other possibly relevant information when making a purchase.

There is no such requirement in the Law, however, the website must display the languages it offers for concluding the contract and the consumer/user must understand what he/she is buying/requesting.  Furthermore, the obligation exists to state the languages in which the contract is offered.

There are no specific requirements for publishing customers reviews.

The concept of a ‘dark pattern’ is not yet defined in law. There is only a general ban on misleading advertising.

 According to the Trade Law, it is prohibited to advertise price reductions for goods in such small quantities that it is evident the seller intends to attract customers to purchase different products. An exception to this rule applies when the seller clearly indicates the available quantities at the beginning of the sales promotion.

Clearance sales may be conducted in situations where the trader is closing its business, specific outlets, or discontinuing the sale of certain products. The seller is obligated to physically separate goods subject to clearance sales from other products sold under regular terms. From the commencement of clearance sales until their conclusion, the seller cannot order or increase the stock of products offered through the clearance sales.

A price reduction campaign cannot last longer than 31 calendar days.

Seasonal sales periods are regulated by law. The Trade Law provides for two seasonal sales periods per year, which are fixed annually. The winter sales period may commence from December 25 until January 10, while the summer sales period may commence from July 1 until July 15. During these sales periods, the seller may initiate seasonal sales that can last a maximum of 60 calendar days.

Explicit consent is required for sending marketing communications through electronic means (such as emails and SMSes) for which the data is obtained through registration or other means when the user is using the e-commerce website.

1. Price reductions
   • clearance sale
   • seasonal sales promotion
   • price promotion (i.e., price reduction)
2. Loyalty programs
3. Free products and coupons
4. Introductory offer price

Rules regarding defective goods under the Consumer Protection Law apply to e-commerce and a special provision regarding distance contracts also applies. We would highlight the right of the consumer/user to withdraw from the contract within 14 days of its conclusion as a distance contract specific right of the consumer/user.

There are no specific risks which are associated with competition laws in Serbia. Serbian laws follow EU trends and limit business practices which restrict competition or provide grounds for the abuse of a dominant position in the Serbian market. Therefore, notwithstanding restrictions regarding the sale of certain items which are prohibited or require a licence, there are no restrictions to sell or offer services.

In Serbia, payment and financial services are governed by the laws and bylaws issued by the Ministry of Finance and the National Bank of Serbia, and the law which regulates this legal area is the Law on Payment Services. There are no specific requirements imposed on e-commerce.

 In Serbia, there are no specialized authorities dedicated to e-commerce. The Ministry of Trade is responsible for overseeing all e-commerce activities. Inspection supervision regarding the application of this law is conducted by the Ministry of Trade through market inspectors and inspectors for IT companies, in accordance with this law and the regulations governing inspection supervision. The Data Protection Commissioner oversees all matters related to personal data, and this body is also responsible for enforcing and monitoring data safety.

Consumers can seek to enforce their rights before a civil court, and the proceedings are to be held rapidly and without delay.

Another option for the consumer for peaceful resolution is to file a complaint electronically, via the internet portal of the National Register of Consumer Complaints and also to seek means of alternative dispute resolution through government mandated bodies which are able to provide arbitration or mediation.

Furthermore, there is also the “Protection of the collective interests of consumers” which is a procedure led by the Ministry of Trade against a seller/service provider which has: 

• breached the rights of at least ten consumers, by the same act/in the same way;
• in the case of conducting an unfair business practice under the Consumer Protection Law

No amendments to the Serbian Law on electronic commerce or other relevant laws have been announced.