Tax News: Bosnia and Herzegovina

Registration of foreign entities before ITA in Bosnia and Herzegovina is finally functioning

Indirect Taxation Authority of Bosnia and Herzegovina (“ITA”) conducts, among other, the registration of the taxpayers for Value Added Tax (“VAT”) purposes in Bosnia and Herzegovina. Pursuant to the applicable Value Added Tax Act of Bosnia and Herzegovina, there are two types of registration: (i) obligatory – in case the turnover in previous year exceeds or is likely to exceed the amount of BAM 50,000 and (ii) voluntary.

In the past, there were technical issues with voluntary registration of foreign legal entities for VAT purposes in Bosnia and Herzegovina which imposed problems for entities doing business there. However, it has been recently announced that all technical difficulties regarding the voluntary registration of foreign legal entities have been resolved, thus enabling straightforward and efficient registration procedure.

As a reminder, foreign legal entities are to be registered before ITA on a voluntary basis through their tax representative in Bosnia and Herzegovina, and for the purpose of conducting the registration procedure taxpayers are obliged to provide the following documentation:

  • Engagement letter for the representative services concluded with the tax representative;
  • Power of attorney with name data, ID number and residence, or a place of business of the tax representative with permanent residence in Bosnia and Herzegovina;
  • Contract or other document as a proof that taxable turnover is performed on the territory of Bosnia and Herzegovina;
  • Documents on the registration with the register of a domicile competent authority, officially translated to one of the official languages in Bosnia and Herzegovina (Bosnian/Serbian/Croatian);
  • Verified copy of passport for the authorised representative of the foreign legal entity;
  • Authorised signatories list verified by foreign commercial banks with opened special transaction account for the tax representative of the entity without residence in Bosnia and Herzegovina, through which transactions will be made related to business transactions;
  • Notice on main transaction account determined by the authorised payment organisation.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.