We inform all foreign passenger carriers that on July 27, 2022. entered into force the new Rulebook on Amendments to the Rulebook on the Application of the VAT Law.
In this regard, Article 2 of the new Ordinance stipulates that the tax base for passenger transport services performed by a passenger transport vehicle (bus, minibus and other vehicle licensed for passenger transport) is that part of the total value of the service that is proportional to the number of kilometers traveled by the vehicle crossing the territory of BiH is taxed in BiH, and that the tax base cannot be lower than the average fee, which is the average amount of value per passenger and per kilometer of 0.10 convertible marks multiplied by the number of passengers traveling and the number of kilometers the vehicle crosses the territory BiH.
Furthermore, a new Article 78a is added to Article 8 of the Rulebook on Amendments to the Rulebook on the Application of the Value Added Tax Act. which regulates the calculation and payment of VAT by a foreign passenger carrier, and the first three paragraphs of the aforementioned article refer to the actions of a foreign carrier registered in BiH through a tax representative, while the remaining paragraphs of Article 78a. relating to the conduct of a foreign carrier that is not registered through a tax representative for VAT in Bosnia and Herzegovina, and in connection with the calculation and payment of VAT.
In this regard, for the purposes of calculating and paying VAT, a foreign passenger carrier is any person who transports passengers on the territory of Bosnia and Herzegovina, and who does not have a seat or residence in Bosnia and Herzegovina.
If it is registered through a tax agent, the calculation and payment of VAT for passenger transportation services performed by a foreign passenger carrier on the territory of Bosnia and Herzegovina is performed by the tax agent of the foreign carrier based in the territory of Bosnia and Herzegovina.
In that case, the foreign carrier, when entering and leaving the territory of Bosnia and Herzegovina, fills in two copies of the Passenger Transport Declaration (form SPP-VAT I), which is an integral part of this Rulebook, of which the ITA keeps one copy after certification.
Furthermore, the calculation of VAT to a foreign carrier that does not have a tax representative based in the territory of BiH is determined by the ITA. In that case, the foreign carrier, upon entering and leaving the territory of BiH, submits to the competent customs authority a completed Application for the calculation of VAT for a foreign carrier that does not have a tax representative in the territory of BiH (form SPP-VAT, which is an integral part of this Ordinance.
When entering the territory of Bosnia and Herzegovina, the competent customs authority, according to the data from the application from paragraph (5) of this article (SPP-VAT), fills in and issues to the foreign carrier a Certificate of calculated VAT to a foreign carrier that does not have a tax representative in the territory of BiH (form SPP-VAT UC). The certificate is issued in two copies, of which the competent customs authority keeps one copy for its own purposes.
Before leaving the territory of BiH, the competent customs authority determines the final calculation of VAT to the foreign carrier on the basis determined in the manner prescribed in Article 2 of the Rulebook, which is explained in more detail in the introductory part of the text. After that, the competent customs authority issues a Certificate on the amount of total calculated and paid VAT that was calculated to a foreign carrier that does not have a tax representative on the territory of BiH (form SPP-VAT IC). The certificate is issued in two copies, of which the competent customs authority keeps one copy for its own purposes.
The foreign carrier of passengers is obliged to present proof of VAT payment to the competent customs authorities, in an amount equal to the total amount determined in the final VAT calculation made with reference to the Confirmation number at the latest at the moment of leaving the territory of BiH.
Please note that in the case when the foreign carrier is not registered through a tax attorney, VAT is paid to the 2nd Group of payment accounts to which one-time VAT payments from Annex V are paid, in the manner prescribed by the Rulebook on the payment of indirect taxes and other of income and fees charged by ITA (“Official Gazette of BIH” number 21/20).