Bosna i Hercegovina
Uprava za indirektno - neizravno oporezivanje

Босна и Херцеговина
Управа за индиректно опорезивање

Notice to foreign providers for services provided in B&H electronically

13.02.2023 | News

The Indirect Taxation Authority (ITA) reminds all foreign entities, who provide their digital services in Bosnia and Herzegovina or services that are performed electronically, on basis of the current legislation of value added tax (VAT), such providers are obliged to register with ITA for VAT, calculate and pay VAT at the standard rate of 17% for services provided to persons (consumers) on the territory of Bosnia and Herzegovina (B&H). According to the current legislation, for services provided electronically to persons who are not registered for VAT in B&H, who have a permanent address, or place of residence in B&H, the place of provision of these services is considered B&H and VAT should be calculated and payed in B&H at the standard rate of 17%. The ITA informs foreign providers of electronically provided services that the fulfillment of tax obligations must be done through the registration of the company/trade through which the activity is carried out in B&H or through registration via  tax representative in B&H (a person with a registered business office in B&H). The registration obligation stems from the very moment of the pursuit of economic activity in B&H with an amount above the statutory VAT threshold (BAM 50.000,00), as the suppliers of such services are legally required to register for VAT if they carry out the taxable turnover in B&H above that stated amount. Non-compliance with tax obligations in accordance with the applicable legislation and the pursuit of economic activities in B&H without adequate tax registration shall be subject to a penalty. Therefore, we encourage all service providers providing electronically, whether domestic or international, to register with the ITA for VAT and fulfill tax obligations according to current legislation.

In particular, we point out that the ITA is currently, in accordance with its powers, conducting checks and identification of all foreign entities that provide the aforementioned aspect of services on the territory of B&H, and that upon completion of these actions, shall publicly disclose data on the entities and types of services that these entities perform, not registered in the Unique Indirect Taxpayers Registry.