The Tax Sector of the Indirect Taxation Authority (ITA) is the second-largest organizational unit in the ITA. This Sector had overall responsibility for implementing the introduction of VAT, whilst supported by other sectors in the organization. On July 1, 2005, just a year and a half after its establishment as a state organization, the ITA entered the final phase of preparations for the introduction of VAT beginning with the registration of taxpayers. Based upon the statistics provided by the entity tax administrations there were expected to be 20,000 taxpayers. To date the ITA has registered more than 37,000 VAT taxpayers. The VAT implementation started on January 1, 2006 without any technical difficulties. Since then the Tax Sector has been successfully handling the collection of taxes, processing VAT returns and collecting excise duties.
A month before the VAT introduction, the toll free VAT-Hotline was made available for citizens. Four months later, after a few thousands incoming calls, it was replaced with permanent VAT information lines +387 51 335 256 and  +387 51 335 257. On working days taxpayers can dial these numbers should they need any help, advice or additional information. The ITA uses these information lines as tools for its educational and consultative activities.

Mr. Saudin Terzic, B.Sc. In Economics Assistant Director Tax Sector

Since the first accounting period and up to the present 97% of VAT taxpayers have been submitting their VAT reports on time. The reason for this large response is considered to be because every month the officials of the Tax Sector deliver the VAT returns directly to over 37,000 VAT taxpayers. The VAT returns can also be collected from the regional centres or downloaded from this site. The taxpayers can also access the data base on the VAT taxpayers, as well as the option to check their VAT returns.
The responsibilities of the Sector are: to draft legal and sub-legal acts related to its scope of activities, to draft operational guidelines for field work and to audit the accounting and collection of VAT and excise duties. The aim of this Sector is to establish more efficient services for taxpayers and to continuously improve the quality of the services provided.

Internal organizational units of the Sector are: Taxpayer Services, Audit and Control, Control of Large Taxpayers and Tax Reports Processing Unit.