Bosna i Hercegovina
Uprava za indirektno - neizravno oporezivanje

Босна и Херцеговина
Управа за индиректно опорезивање

The threshold for entering the VAT system has been increased to BAM 100 000

written by dzenan.k | 29/11/2023

We inform all taxpayers that the Parliamentary Assembly of Bosnia and Herzegovina adopted the Law on Amendments to the Law on Value Added Tax, which in Article 57 paragraph (1) of the Law on Value Added Tax increases the taxation threshold from BAM 50 000 to 100 000.

In the Official Gazette of Bosnia and Herzegovina, number: 80/23 of 24.11.2023. the aforementioned amendment to the Law was published and it enters into force on the eighth day from the date of its publication in the Official Gazette, i.e. 02.12.2023.

In this regard, when it comes to the registration of taxpayers, please note that the procedure of registration in the Unified register of taxpayers of indirect taxes is carried out according to the regulations valid at the time of submission of the application for registration, i.e. at the time of initiation of the registration procedure ex officio.

Therefore, we are informing all legal and natural persons who realised taxable turnover in the amount of more than BAM 50 000 and submitted a request for entry and registration in the Unified register of indirect tax payers before the Law on Amendments to the VAT Law came into force, the procedure according to the request will be resolved according to the regulations that were valid at the time of its initiation.

Furthermore, and bearing in mind that the adoption of the aforementioned amendment to the law caused great interest in the business community in terms of its impact on the process of termination of registration of VAT payers, we would like to point out that the ITA will not ex officio initiate the process of termination of registration for payers who are in the previous calendar year achieved turnover below the taxation threshold, but in the coming period priority will be given to those requests submitted due to the fact that the taxpayers in the previous calendar year achieved turnover below the taxation threshold (for taxpayers who in 2023 achieved a turnover of less than BAM 100 000).

Please note that the above does not apply to taxpayers who have been approved for voluntary VAT registration and which, in accordance with Article 44, paragraph (7) of the Act, lasts at least 60 (sixty) months, after which the taxpayers can submit a request for cancellation of VAT registration.