Tax rate by region Bosnia and Herzegovina

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Understanding SaaS Sales Tax in Bosnia and Herzegovina: A Comprehensive Guide for Businesses

Operating a SaaS business in Bosnia and Herzegovina? Navigating the complexities of sales tax can be a challenge. This guide aims to shed light on the key aspects of Value Added Tax (VAT) applicable to SaaS services in the region, empowering your business with essential compliance information.

Bosnia and Herzegovina adopted a comprehensive VAT system in 2006, harmonizing its tax structure with European Union standards. The standard VAT rate currently stands at 17%, applicable to most goods and services, including SaaS offerings. Notably, educational services may fall under an exemption, relieving them from VAT obligations.

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Bosnia and Herzegovina

Bosnia and Herzegovina adopted a VAT system in 2006 to improve revenue collection and align with EU standards.

Official government link: Indirect Taxation Authority

17.00%

E-products and services VAT/Sales tax rate

0.00%

Reduced tax rate

Reduced tax rate product categories

No specific reduced tax rates for digital goods and services

Exempted product categories

Educational services may be exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Before commencing any taxable activity in the country

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

To register for VAT, complete the VAT registration application form, gather the required documents such as business registration, proof of address, and TIN, and submit the application to the tax authorities either online or in person. Then, wait for confirmation of your VAT registration number.

List of digital and electronic services liable for tax

Downloadable software, streaming services, e-books, online courses, and other electronically supplied services.

Penalties

Penalties may be imposed for late registration, late filing, and other non-compliance with VAT obligations, which may include fines and interest.

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

By the 10th of the month following the reporting period.

E-invoicing requirements

Yes

Record keeping

Businesses must retain records of all transactions (invoices, receipts, etc.) for a minimum of 10 years.

How-To Guides: Bosnia and Herzegovina SaaS VAT

Step: 1 Threshold

On February 2, 2023, the tax authority of Bosnia and Herzegovina reminded non-residents of digital services to consumers (B2C) in Bosnia and Herzegovina that they are required to register for and collect VAT.

VAT registration threshold for taxable persons is BAM 100,000 per year. If your SaaS/B2B or digital services sales in B&H to private consumers or taxable persons exceed this, VAT registration is mandatory for resident and non-resident suppliers. Foreign digital providers must register as soon as they commence taxable activities in B&H and may need a tax representative in B&H.

 

Step: 2 Business Registration:

VAT registration is conducted with the Indirect Taxation Authority (ITA) (Uprava za indirektno oporezivanje), which issues VAT status after application and relevant documentation. A local tax representative is usually required for non-resident companies.

Step: 3 TIN/VAT Number:

The indirect tax identification number issued by the ITA serves as the VAT identification number for compliance.

Step: 1 Standard VAT Rate

Standard VAT rate is 17 % on taxable supplies of goods and services, including digital services/SaaS.

Step: 2 VAT Formula

To calculate your tax amount, consider the following formula: 
Tax Amount = NetPrice × 17%

Step: 3 Reverse Charge (B2B)

For B2B cross-border services, the reverse charge may apply where the recipient is a VAT-registered business in B&H; the B&H business accounts for VAT internally rather than the foreign supplier charging VAT directly. (General VAT principle; no specific digital service exemption noted for B2B).

Step: 1 Selling B2C

Foreign SaaS/digital services supplied to non-VAT registered local consumers are taxable in B&H at 17 % and VAT must be charged and remitted by the supplier (via local registration).

Step: 2 Selling B2B

Services to local VAT-registered businesses generally fall under the reverse charge mechanism — the buyer accounts for VAT, and the seller does not charge VAT on the invoice if valid B&H VAT numbers are recorded.

Step: 3 Invoice Requirements

Tax invoices must include:

  • supplier name
  • address and indirect tax ID
  • place/date of issuance
  • invoice number
  • date of supply
  • purchaser name and VAT number (if applicable)
  • description, quantity, and price
  • net amounts
  • VAT rate and VAT amount
  • total amount including VAT.

Step: 1 Filing Interval

VAT returns are monthly.

Step: 2 Filing Deadline

VAT returns and payment must be submitted by the 10th day of the month following the reporting period.

Step: 3 Submission

Returns are submitted to the Indirect Taxation Authority via the official e-services portal using a qualified electronic signature; payment is made to the ITA’s Single Account.

Step: 4 Record Keeping

Taxpayers must maintain proper VAT accounting and records; invoices must be kept with other tax documentation (standard practice; official Law requires proper books and invoices).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Bosnia and Herzegovina VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

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