Start of regulation implementation

We hereby inform you that, as of August 6, 2025, the Rulebook on Amendments to the Rulebook on the Application of the Law on Value Added Tax (VAT) will enter into force. This rulebook was adopted by the Governing Board of the Indirect Taxation Authority at its 9th session and published in the Official Gazette of Bosnia and Herzegovina, No. 25/25 on April 29, 2025.

We would like to remind you that the key amendments include, among others:

• inclusion of the purchase of special tools used in the production process as part of secondary turnover,
• exemption from the exchange of electricity supply from renewable sources by small producers not registered for VAT,
• more flexible procedures for inventory write-offs,
• more precise definition of low-value gifts,
• clarification of the place of taxation for electronically delivered services,
• clarification of the VAT base for services under Article 9 of the VAT Law and for mutual supply of electricity from renewable sources between VAT taxpayers and small producers,
• redefinition of Article 54 of the Rulebook regarding conditions for VAT refunds in accordance with Article 29 of the VAT Law (diplomatic missions, international organizations, their members and families, and supplies within international projects),
• redefinition of Article 68 of the Rulebook concerning input VAT deduction for fixed assets acquired before VAT registration,
• clearer definition of subcontractors under the special construction scheme,
• redefinition of the VAT refund right for goods purchased by travelers, including an increase in the minimum value threshold on Form “VAT-SL-2” (from the current 100 BAM to 200 BAM)

• New PDV-SL 2 form and CD PDV 1 M form, along with other changes.

We take this opportunity to once again emphasize the importance of these amendments and recommend timely preparations to ensure proper application of the regulation.