ALICE (A Logical Integrated Computerized Environment) represents logical integrated computer environment with the main purpose of processing the information on collected indirect taxes in Bosnia and Herzegovina (VAT and excise duties). The ALICE software was developed by EU – CAFAO (European Union - Customs and Fiscal Assistance Office), while the system upgrades were developed by EU-TACTA (European Union – Technical Assistance to Customs and Tax Administrations).

The ALICE software is operational since 1 July 2005 when the process of registering the home excise taxpayers started as well as registration of VAT taxpayers with turnovers exceeding BAM 50.000,00. As VAT come into force it meant the beginning of automatic processing of VAT returns in VAT subsystem. Also, the Single Register of Indirect Taxpayers was implemented through this application.

Along with regular processes of application some improvements were made on the basis of more complex and bigger requests by the users. The ALICE software now reaches the version 6.0 which integrated modules such as: registration of taxpayers, processing of VAT returns and excise declarations, payments and accounting, refunds, debt enforcement, controls, risk analyses, reporting, maintaining and e-VAT. The software is available in all three languages of the constitutional nations of Bosnia and Herzegovina as well as in English language.

The main characteristics of the software are simple inputs of VAT returns through bar code, friendly user environment for VAT officers, easy verification of customs procedures data, fast risk analyses with many dynamic parameters, simplified intuitive procedures on refunds and other accounting and administrative procedures.

There is great emphasis on automatization of whole process, which enabled most important financial processes (generation of VAT return, generation of VAT according official duties, debt enforcement, reconciliations etc.) to be conducted in fully automated manner. This process does not require officer’s interaction. Beside financial processes there is automation of reporting process based on a user’s request, which is very flexible taking speed into account.

The VAT subsystem is a distributed system which is very suitable for regional division of the ITA and as part of the ITA information system contributing to efficient functionality of the ITA administration.