Bosnia and Herzegovina: Foreign digital service providers are required to register for VAT
The Indirect Taxation Authority (ITA) is reminding all foreign companies that offer digital or electronically-performed services that they must register for VAT, calculate and pay VAT at a rate of 17% for services provided to individuals (consumers) in Bosnia and Herzegovina. If they provide services electronically to individuals who are not registered for VAT in Bosnia and Herzegovina, the place of provision of the services is considered Bosnia and Herzegovina and VAT must be calculated and paid there.
Foreign service providers must register through the company/trade that carries out the activity in Bosnia and Herzegovina or through a tax representative. The registration obligation applies from the moment a company starts conducting economic activity in the country with a taxable turnover above BAM 50,000. Non-compliance will result in a penalty. The ITA is currently checking and identifying all foreign companies that provide such services in Bosnia and Herzegovina and will disclose information on companies and services that are not registered.
Source: uino.gov.ba
