The two sides then traded goals, with captain Craig Figes first finding the back of the net with a penalty and then firing home from open play.
With the scores level at 3-3, Rob Parker blasted home from five metres to give the hosts the lead.
Two goals from Serbia put them ahead, before Ciaran James levelled the contest at 5-5.
Serbia then started turning on the style, scoring five unanswered goals in the period to take it to 10-5 at half-time.
Another James goal early in the third quarter gave the home crowd something to cheer about, but the Serbs responded with six more goals before the end of the period.
Team GB pulled on back in the final period, but they looked fatigued as they leaked another five goals before the final whistle, with driver Andrija Prlainovic proving Serbia's star man as he scored five times.
Filip Filipovic found the back of the net four times, while Vanja Udovicic and Stefan Mitrovic scored hat-tricks.