Overview of VAT in Bosnia and Herzegovina supported in Kintsugi

How Bosnia and Herzegovina VAT works in Kintsugi

If you sell software or digital services to customers in Bosnia and Herzegovina, you may need to register for VAT there, charge it on your sales, and file a return every month. Kintsugi tracks that exposure for you, calculates the tax, and handles the registration and the filings once Bosnia and Herzegovina is enabled on your account.

• Bosnia and Herzegovina VAT is charged at one national rate of 17%, with no reduced rates and no regional rates

• Registration becomes mandatory once your taxable sales into the country pass BAM 100,000

• A non-resident business registers through a local tax representative, which Kintsugi arranges through our filing partner

• Once you are registered, you charge 17% on sales to businesses and to consumers alike

• Returns are monthly, due by the 10th of the following month

• Bosnia and Herzegovina support currently covers the B2B SaaS and B2C SaaS product categories

What Bosnia and Herzegovina VAT Is

Bosnia and Herzegovina applies value added tax, known locally as porez na dodatu vrijednost (PDV), to goods and services supplied in the country. The tax is administered at state level by the Indirect Taxation Authority (ITA), or Uprava za indirektno oporezivanje (UIO), at uino.gov.ba. The ITA is headquartered in Banja Luka, with regional offices in Sarajevo, Tuzla, and Mostar.

The local currency is the convertible mark (BAM), also written KM, which is pegged to the euro at 1.95583 BAM to 1 EUR.

Bosnia and Herzegovina is not an EU member state, so EU schemes such as One Stop Shop (OSS) do not cover it. A Bosnia and Herzegovina registration stands on its own.

Which Registration Scheme Applies To You

Bosnia and Herzegovina runs a single VAT scheme. There is no simplified scheme and no separate scheme for digital sellers, so the difference below is about who registers and how, not about which scheme they land in.

Most Kintsugi customers selling into Bosnia and Herzegovina are non-resident sellers.

What Kintsugi Does Automatically vs. What You Do

Kintsugi handles:

• Monitoring economic, physical, and collected-tax exposure in Bosnia and Herzegovina

• Tracking your taxable sales against the BAM 100,000 threshold and alerting you as you approach it

• Calculating 17% VAT on B2B SaaS and B2C SaaS sales once you are registered

• Applying reverse charge treatment to business sales while you are not registered there

• Submitting your registration through our filing partner, including the local tax representative appointment

• Preparing and filing your monthly VAT returns, including nil returns

• Converting foreign-currency amounts using the Central Bank of Bosnia and Herzegovina middle rate

You handle:

• Providing the registration details and documents Kintsugi requests

• Arranging the local bank account the authority requires for VAT settlement

• Confirming which of your customers are businesses, by supplying a valid PDV number where one applies

• Remitting the VAT payment by the deadline

• Entering your input VAT in Kintsugi if you want it reflected, because Kintsugi does not calculate input tax credit

• Keeping your own invoices and records for the periods Bosnia and Herzegovina law requires

Which Integrations Feed Bosnia and Herzegovina Data

All read-only integrations except Walmart, and all tax-engine integrations except Chargebee, sync transaction data that Kintsugi uses for Bosnia and Herzegovina exposure and calculation.

How To Get Bosnia and Herzegovina Enabled

Nexus monitoring for Bosnia and Herzegovina runs for every organization, so you can see your exposure before you commit to anything. To register, calculate, and file there, your account needs a plan that includes international VAT support and Bosnia and Herzegovina enabled by our team.

Select Register on the Bosnia and Herzegovina jurisdiction. If the country is not yet enabled for you, the app shows Talk to Sales and connects you with someone who can turn it on. If your current plan does not include it, you keep full visibility into your Bosnia and Herzegovina exposure in the meantime.

What This Does Not Cover

• Product categories other than B2B SaaS and B2C SaaS. Kintsugi calculates Bosnia and Herzegovina VAT for these two categories today. Physical goods, expanded digital categories, and other services are not in scope. Support for further categories is planned but not available yet.

• Registration and filing for businesses with a physical presence in Bosnia and Herzegovina. Kintsugi monitors this exposure and tells you when it exists. Registering and filing for a locally established business is handled outside Kintsugi.

• Cross-border sales of physical goods. Bosnia and Herzegovina has no distance-selling regime. Goods you ship in are taxed as imports at the border, and Kintsugi does not calculate or file for those.

• Import VAT and customs duty. These are settled at customs by whoever acts as importer, and they sit outside Kintsugi's calculation.

• Input tax credit. Kintsugi does not calculate input VAT. You can enter it in Kintsugi if you want it reflected in your figures.

• Entity-level fiscalization and electronic invoicing. The Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District each run their own fiscalization system, separate from state-level VAT. Kintsugi does not issue Bosnia and Herzegovina fiscal receipts or electronic invoices, and does not connect to any of those three systems.

• Excise goods. Alcohol, tobacco, and petroleum products sit under a separate regime that Kintsugi does not handle.

• Company incorporation in Bosnia and Herzegovina. Kintsugi handles tax registration, not company formation.

This article is general information about how Kintsugi works, not tax advice for your specific situation.

FAQs

Q: Do I have to register in Bosnia and Herzegovina if I only sell to businesses there?

A: No. A non-resident business selling only to business customers is not required to register, whatever the sales volume, because those customers account for the VAT themselves. See How B2B Reverse Charge Works in Bosnia and Herzegovina.

Q: If I register, do I still get to skip VAT on business sales?

A: No, and this is the most common surprise. Once you are registered in Bosnia and Herzegovina, you charge 17% on business sales and consumer sales alike. Reverse charge only applies while you have no registration and no local tax representative there.

Q: Does Bosnia and Herzegovina require a local agent or fiscal representative?

A: Yes, for non-resident businesses. Registration and filing both run through a tax representative established in the country, who is jointly liable for the VAT. Kintsugi arranges this through our filing partner.

Q: Is Bosnia and Herzegovina part of EU OSS?

A: No. It is not an EU member state, so an OSS registration does not cover it. It needs its own registration.

Q: Which currency do I file and pay in?

A: BAM only, for both the return and the payment. Amounts in other currencies are converted at the Central Bank of Bosnia and Herzegovina middle rate.

Q: How often do I file?

A: Monthly, with no other option, and you file even in months with no activity.

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