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My company's account is blocked

How to check whether a company's or entrepreneur's bank account is blocked, and what to do to have the block lifted.

INFO
Short answer. A block on a company's or entrepreneur's account most often arises from a forced-collection procedure carried out by the National Bank of Serbia (NBS) on the order of tax, customs, or court authorities over an unpaid debt (for example unpaid tax, contributions, or a final judgment), and can also arise from an ordinary enforcement procedure before a public enforcement agent (javni izvršitelj). The block is recorded against the company's registration number, so every one of its accounts at every bank is blocked, not just one. A business can check its block status for free through the NBS service for searching debtors in forced collection, and the block ends once the debt that caused it is settled or the basis for collection is withdrawn.
ROK
Deadline. There is no single statutory deadline for how long a block itself can last - it lasts until the debt that caused it is settled, or until the basis for collection is challenged and withdrawn through the legal remedy provided for that type of procedure (an appeal against a tax or customs decision, an objection or appeal in the enforcement procedure). (Regulations on forced collection carried out by the National Bank of Serbia, together with the Law on Tax Procedure and Tax Administration (Zakon o poreskom postupku i poreskoj administraciji), the Customs Act (Carinski zakon), or the Law on Enforcement and Security (Zakon o izvršenju i obezbeđenju), depending on which authority issued the decision that is the basis for the block. An appeal against a tax decision is filed within 15 days of receipt (Art. 142 of the Law on Tax Procedure and Tax Administration); an appeal against a customs decision goes to the Ministry of Finance (Art. 30 of the Customs Act) within the general 15-day limit (Art. 153 of the General Administrative Procedure Law); in enforcement proceedings the time limit for an objection or appeal is eight days (Art. 25 of the Law on Enforcement and Security).)

What to do

The first step is to establish whether the company is actually blocked, and on what basis, since this differs from the usual idea of a personal account block. For companies and entrepreneurs, a block is most often caused by forced collection carried out by the National Bank of Serbia on the order of the tax administration, customs, or a court, over unpaid tax, contributions, a customs debt, or a final judgment in a creditor's favor. The block is recorded against the company's registration number, not against a single account, so it applies to all of its accounts at every bank where it holds one. Block status and its duration can be checked for free through the NBS service for searching debtors in forced collection, by searching the registration number, tax ID (PIB), or account number - the service shows whether an active block exists, on what basis, and for how many consecutive days it has lasted.

Once you have established the basis, check whether the debt is owed and correctly calculated, and whether it has already been partly or fully settled. If the basis is disputed - for example, if the tax decision is considered wrongly issued, the obligation already paid, or the claim time-barred - the legal remedies provided for that specific type of procedure are available: an appeal against a tax decision, an appeal against a customs decision, or an objection or appeal in the enforcement procedure, depending on which authority issued the decision that is the basis for collection. If the debt is owed, payment (in part or in full) generally speeds up lifting the block, but does not end it automatically on the same day - the forced-collection system first has to record that the basis for collection has ceased, which depends on notice from the competent authority. For that reason, it is useful to keep checking block status through the same NBS service even after payment, rather than relying only on the bank's confirmation of the transaction.

If the block lasts a long time and, because of it, the company fails to meet obligations that are due to other creditors as well, this is no longer only a question of one block, but potentially a question of a lasting inability to pay within the meaning of the bankruptcy regulations.

When to contact a lawyer

A consultation is especially useful when the basis for the debt itself is being challenged (for example, arguing that a tax or customs decision is unlawful, that the debt has already been paid, or that it is time-barred), when the block lasts unusually long despite payment or a challenge, or when the block calls into question the company's ability to continue meeting obligations toward other creditors and so raises the question of a possible duty to file for bankruptcy. A lawyer can assess which legal remedy applies to the specific decision that is the basis for collection, prepare it within the statutory deadline, and follow the further course of the procedure before the competent authority.

Sources

What to do

  • Check the block status and its basis against the company's registration number through the free NBS service for searching debtors in forced collection (search by registration number, tax ID (PIB), or account number) - the service shows whether the company is blocked, on what basis, and for how many consecutive days.
  • Determine which authority issued the decision that is the basis for the forced collection - the tax administration, customs, or a court - and for exactly which debt (unpaid tax or contributions, a customs debt, a final judgment, or another enforcement instrument in a creditor's favor).
  • Check whether the debt is actually owed and whether it has already been partly or fully settled; if it is not owed or was calculated incorrectly, that is grounds to challenge it, not to wait it out.
  • If you believe the decision that is the basis for collection is unlawful, or that the debt was determined incorrectly, file the legal remedy provided for that type of procedure (an appeal against a tax or customs decision within 15 days, an objection or appeal in the enforcement procedure within eight days).
  • If the debt is owed, consider settling it in part or in full to have the block lifted sooner, since the block does not, as a rule, end automatically on the day the basis is challenged - it ends only once the competent authority notifies the forced-collection system that the basis has ceased to apply.
  • After payment or withdrawal of the basis, check through the same NBS service whether the block on the registration number has actually been lifted, rather than relying only on proof of payment.
  • If the block lasts a long time and, because of it, the company is no longer able to meet its due obligations toward other creditors either, check whether this triggers a duty to file for bankruptcy.

What it costs

The fee depends on whether a tax decision, a customs decision, or an enforcement procedure is being challenged, and, as a rule, is calculated in proportion to the value of the dispute, under the Attorneys' Fee Schedule or a separate agreement with the client.

Basis for the attorney fee: Tariff item 78 of the Tariff on Attorneys' Fees and Expense Reimbursement (Tarifa o nagradama i naknadama troškova za rad advokata) for legal advice (the fee for the submission that starts the relevant procedure); for a legal remedy against a tax or customs decision, item 40 in conjunction with item 37 (based on the disputed amount) or item 38 (before tax and customs authorities, 1,000 points); for an objection in enforcement proceedings, item 20 in conjunction with item 18.

FAQ

How do I check whether my company's account is blocked?

Status can be checked for free through the National Bank of Serbia's service for searching debtors in forced collection, by entering the company's registration number, tax ID (PIB), or account number. The service shows whether a block is recorded, on what basis, and for how many consecutive days it has lasted.

Is a company account block different from an individual's account block?

Yes. For an individual in an enforcement procedure, the law protects part of their income, such as wages and pensions, up to a prescribed threshold, and records on individual citizens are not publicly available. For a company or entrepreneur, forced collection is most often carried out on the basis of tax, customs, or court enforcement decisions, is recorded publicly against the company's registration number through the NBS service, and covers all of its accounts at every bank, with no exemption of part of the funds of the kind that exists for an individual's personal income.

Is the block lifted automatically as soon as the debt is paid?

Not necessarily at that exact moment. The block ends once the forced-collection system records that the debt has been fully settled or that the basis for collection has been withdrawn, which depends on when the competent authority (the tax administration, a court, or the creditor) notifies the system that the basis has ceased to apply. For that reason, it is useful to keep checking status through the NBS service even after payment, rather than relying only on the payment date.

What if, because of the block, the company can no longer meet its obligations to other creditors for a longer period?

If the block leads to the company no longer meeting due monetary obligations on a lasting basis, that can constitute a ground for bankruptcy (a lasting inability to pay). The persons authorized to represent the company are, in that case, legally required to file for bankruptcy, not merely to wait for the block to be lifted.