Rural tourism businesses in Serbia have been subject to taxation since 2019, with relatively low tax rates. However, reports indicate widespread tax avoidance due to low occupancy rates throughout the year and a significant lack of tax inspectors to enforce compliance. The limited number of inspectors hinders the government’s ability to collect revenue from this growing sector. This shortfall impacts state funds despite the potential economic benefits of rural tourism. Industry stakeholders suggest the current system struggles to balance encouraging tourism development with ensuring tax responsibility. The issue highlights a challenge in regulating informal economies and maximizing revenue from emerging sectors. Authorities are facing pressure to address the lack of oversight and improve tax collection within rural tourism.