Invoicing and Tax regulation in Bosnia and Herzegovina
In Bosnia and Herzegovina, businesses are required to provide their customers with an invoice for goods and services sold. An invoice can serve as a simplified VAT (Value Added Tax) invoice if it contains certain items such as the date of issue, the identity of the goods or services supplied, the quantity of the goods and the amount of VAT payable. It's vital to ensure that your invoices comply with these mandatory regulations.
Real-Time Reporting / Fiscalization
Bosnia and Herzegovina introduced a Fiscalization Law in 2011 which requires businesses to report their transactions in real-time to the Indirect Taxation Authority (ITA). This applies to cash transactions, card payments, and transactions made across all other payment services. Taxpayers must use certified cash registers and fiscal printers that are connected to the ITA system. This real-time reporting is mandatory for all businesses.
E-invoicing is not yet mandatory in Bosnia and Herzegovina. However, lots of businesses have started implementing e-invoicing voluntarily in their operations due to its efficiency and its promotion of transparency in transactions. While there are numerous digital solutions to help streamline the process, there are yet no clear regulations or specifications on e-invoicing from the Bosnian authorities.
Businesses in Bosnia and Herzegovina are required to charge VAT on most goods and services at a standard rate of 17%. The VAT system is regulated by the Law on VAT, under which businesses whose annual turnover exceeds BAM 50,000 (approximately EUR 25,600) are required to register for VAT. Non-resident traders are obliged to register as soon as they supply goods or services in Bosnia and Herzegovina. There are certain exemptions, detailed in the Law on VAT. Compliance with these tax laws is mandatory.