News

Amendments to indirect taxes in BiH

Tax news, December2017

Bylaws regulating indirect taxes in BiH, i.e. regulating the field of value added tax (“VAT”) and excise duty, have been published in the “Official Gazette of BiH”, no. 84/16 dated 24 November 2017 and no. 85/16 dated 1 December 2017. We hereby provide you with a brief overview of the most important changes introduced within the adopted bylaws.

VAT

Newly adopted bylaws in the VAT area and highlighted novelties of each bylaw are presented in the below table.

Bylaw
Highlighted novelties

Amendments to the VAT Rulebook

As of tax period January 2019 it is mandatory to submit the VAT return to the ITA in electronic form. Exceptionally, taxpayer is enabled to submit the VAT return in electronic form prior to tax period January 2019, if the taxpayer registers with the ITA for electronic services. The Rulebook applies as of 1 January 2018.

Decision on Determination of the Large Taxpayers of Indirect Taxes

Large taxpayers of indirect taxes for the period 2018 -2020 are:

  1. Taxpayers whose sum of input and output VAT for the period from 1 August 2016 to 31 July 2017 amounts BAM 1.6 million or more
  1. Banks and insurance companies, regardless of the VAT amount

Instruction on Registration of Users of Electronic Services of the Indirect Taxation Authority

The Instruction prescribes the method and procedure for registration of users of electronic services of the ITA, determines who can be the user of electronic services of the ITA, the rights and liabilities of users of electronic services of the ITA, the process of changing the data on the e-portal and the procedure of deactivating the user’s account.

Excise duties

Newly adopted bylaws in the excise duties area and highlighted novelties of the each bylaw are presented in the below table.

Bylaw
Highlighted novelties

Amendments to the Excise Duties Rulebook

As of tax period January 2019 it is mandatory to submit the PDA return to the ITA in electronic form. Exceptionally, taxpayer is enabled to submit the PDA return in electronic form prior to tax period January 2019, if the taxpayer registers with the ITA for electronic services. The Rulebook applies as of 1 January 2018..

Decision on Determination of the Specific and Minimum Excise Duty for Cigarettes and Amount of the Excise Duty for Smoking Tobacco in 2018

Specific excise duty for cigarettes has been increased from BAM 1.35 to BAM 1.50 per one package of 20 cigarettes.

Minimum excise duty for cigarettes has been increased from BAM 2.42 to BAM 2.60 per one package of 20 cigarettes.

Excise duty for smoking tobacco has been increased from BAM 96.80 to BAM 104.00 per one kilogram. Comparable data are excise duties previously determined for 2017. The Decision applies as of 1 January 2018.

Decision on the Amount of Diesel-Fuel for which the Toll is not Charged in 2018

The Decision determines the amount of diesel-fuel which is being used for the needs of mines, thermal power plants and railways, for which the toll is not charged in 2018. The Decision applies as of 1 January 2018.

Contacts:

In case of any additional questions, please do not hesitate to contact us:

Samir Hadžić
Manager
Tax, Legal Practice
T: +387 (0) 33 277 560
M: +387 (0 ) 61 796 067
shadzic@deloittece.com

Emir Ibišević
Senior Manager
Tax, Legal & BPS Services
T: +387 (0)33 277 560
M: +387 (0)61 396 047
eibisevic@deloittece.com

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