New Law on Electronic Documents, Electronic Identification and Trust Services in Electronic Business: What Changes in Legal Transactions

The new Law on Electronic Documents, Electronic Identification and Trust Services in Electronic Business (hereinafter: the New Law on Electronic Documents) introduces alignment with the EU framework (eIDAS 2.0), a digital wallet, and broader use of electronic identification and trust services. Its goal is to make electronic documents fully equivalent to — and practically usable in — everyday legal transactions, from contracts to communication with public authorities.

Why is the current 2021 Law being amended?

Serbia’s existing legal framework already recognizes electronic documents, but their practical use still lags behind available technological possibilities.

The key goals of Serbia’s information society development strategy include:

• Developed e-government services for citizens and businesses
• Improved information security for citizens, public administration, and businesses
• Better digital knowledge and skills among citizens
• Strengthening the capacity of employees in both public and private sectors to use new technologies
• Digitalization of services and business operations in both sectors

However, these goals cannot be fully implemented while the following issues remain:

• insufficient use of electronic services
• inconsistent practices among authorities and institutions
• technical and legal limitations in document exchange
• lack of alignment with European systems

As a result, electronic documents often exist “on paper,” but not in actual business practice.

What is eIDAS 2.0?

eIDAS 2.0 is the updated version of the European Union’s regulation on Electronic Identification, Authentication and Trust Services, adopted in 2024.

The core purpose of reforming the existing law is alignment with this European regulation, which includes:

• interoperability between national systems (recognition of electronic identities across borders)
• unified standards for electronic services

This is a key prerequisite for enabling electronic documents to function fully in international transactions. In practice, this could mean there will no longer be a need for the recognition of digital certificates issued abroad.

Key changes introduced by the New Law on Electronic Documents

1. Digital Wallet (EUDI Wallet / E-Wallet)

One of the most notable innovations is the introduction of the European Digital Identity Wallet.

The EUDI Wallet is essentially a mobile application (similar to mobile banking or eGovernment apps) that will allow users to store:

• ID cards
• driver’s licenses
• diplomas
• bank cards

The draft law provides for strict certification of these wallets every five years, along with vulnerability assessments every two years.

The purpose is for Serbian citizens’ digital identities to be recognized throughout the EU — for example, allowing someone to rent a car or open a bank account abroad using only this application.

In short, the digital wallet enables:

• storage of digital documents and identity credentials
• simple identity verification
• use of personal data without repeatedly submitting documents

2. Strengthening Electronic Identification

The New Law further develops:

• reliable user identification
• legal certainty of electronic identity
• usability across different systems

For that reason, it introduces a detailed electronic identification scheme, with the goal of making digital identification as reliable as physical presence.

3. Electronic Attributes

The New Law introduces electronic attestations of attributes (for example: confirmation that you are a student, hold a certain license, or are employed), which will be issued by public authorities or authorized legal entities.

The law defines them as follows in Article 2:

55) an attribute is a characteristic, quality, right, authorization, or property of a natural or legal person, as well as a characteristic of a tangible or intangible object

56) an electronic attestation of attributes is an electronic confirmation that enables reliable authentication of attributes

57) a qualified electronic attestation of attributes is an attestation issued by a qualified trust service provider in accordance with legal requirements

Example:

• ID card = document
• date of birth = attribute
• confirmation that someone is over 18 = electronic attribute

“Ordinary” attributes will be issued by trust service providers, while qualified attributes will be issued by public authorities or qualified trust service providers.

4. Trust Services

The New Law introduces stricter oversight of trust service providers.

In addition to professional staffing requirements, liability obligations, and security systems, providers must now also maintain an updated termination plan to ensure continuity of qualified services and citizens’ data.

5. Other Important Changes

One important area is archiving.

The draft law further clarifies rules for long-term storage of electronic documents (e-archiving) to ensure documents remain valid and readable for decades.

Development of Trust Services

The New Law places special emphasis on trust services such as:

• electronic signatures
• electronic seals
• timestamps
• electronic delivery services

These services are expected to become the foundation of digital legal transactions.

They replace the traditional legal functions previously performed by paper documents, handwritten signatures, and physical seals: identity verification, confirmation of intent, proof of timing, and reliable document exchange.

Without these services, an electronic document would remain merely a technical record. With them, it becomes legally relevant and usable in legal transactions.

Electronic Documents as the Standard

The purpose of the New Law is to ensure that:

• electronic documents become the primary rather than alternative format
• digital exchange replaces paper communication
• legal certainty becomes equal to (or greater than) traditional documentation systems

What fundamentally changes in legal transactions?

Once the New Law enters into force, several key aspects of legal transactions will change.

1. How legal transactions are concluded

Contracts, statements, and other legal acts:

• will no longer require physical presence
• may be concluded entirely digitally
• will be easier to prove in electronic form

2. Evidentiary value of electronic documents

The law aims to provide:

• greater legal certainty
• clearer evidentiary rules
• fewer inconsistencies in court practice

3. Communication with public authorities

The expectation is:

• greater digitalization of public administration
• fewer in-person procedures
• standardized electronic communication

Problems the law recognizes — but does not fully solve

The New Law is only the first step.

In practice, several limitations remain:

• insufficient technical readiness
• a limited number of trust service providers
• implementation costs
• lack of public awareness

FAQ – Questions About the New Law on Electronic Documents

When will the New Law enter into force?

According to the draft, the law will enter into force eight days after its publication in the Official Gazette.

At this moment, it has not yet been formally adopted.

Are electronic documents legally valid like paper documents?

Yes.

The draft explicitly states that an electronic document cannot be denied legal validity, evidentiary value, or written form solely because it exists in electronic format (Article 7).

In practice, this means an electronic document can have the same legal effect as a paper document, provided all other legal requirements are met.

What is a digital identity wallet and is it mandatory?

A digital identity wallet is a means of electronic identification that allows users to store, manage, and share identification data and electronic attestations of attributes.

Its use is not mandatory.

The law explicitly states that individuals who do not use it cannot be denied access to services, employment opportunities, or entrepreneurship.

Conclusion

The New Law on Electronic Documents does not merely introduce new legal concepts — it attempts to modernize traditional legal transactions.

It moves legal practice from paper-based and formalistic processes toward a digital, interoperable, and automated system.

However, its real-world impact will depend on:

• technical readiness
• consistent implementation
• public trust in digital tools

That is where it will become clear whether electronic documents truly become the rule — or remain the exception for years to come.

Law Firm Petrović Mojsić & Partners