The Bosnia and Herzegovina tax authorities have announced a rise in the Value Added Tax registration threshold and a range of other measures which should come into effect before the end of 2021.
Bosnia moves toward European Union VAT regime
The changes to the VAT regime help bring it into line with the European Union VAT regime as Bosnia aims long-term for accession into the trade bloc. The changes include
- Increase in VAT registration threshold to BAM 75,000 (approx €38,400) sales per annum from BAM 50,000.
- Introduction of the domestic reverse charge to combat VAT fraud in the: wholesale electricity & gas markets; investment gold; and supply of immovable property in certain circumstances
- Simplification of group VAT registrations
- Improvements in the VAT reclaims process for non-residents
- Update on the place of supply rules to determine which country VAT rules and liabilities apply