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Bosnia — PDV System

Bosnia & Herzegovina — PDV (Porez na dodatu vrijednost)

Last Updated: 2026-02-20 Confidence Level: HIGH for tax rates, MEDIUM for e-invoicing (pending legislation)

Overview

Bosnia and Herzegovina operates a unified VAT (PDV) system administered by the Indirect Taxation Authority (Uprava za neizravno oporezivanje / UNO/ITA). Despite the country's complex two-entity structure (Federation of BiH and Republika Srpska), VAT is applied uniformly across the entire territory.

BiH Entity Structure and Tax Governance

graph TD
    BIH["Bosna i Hercegovina (BiH)"]

    BIH --> FBIH["Federacija BiH (FBiH)<br/>Primarni entitet<br/>Sarajevo, Mostar<br/>~60% populacije"]
    BIH --> RS_ENT["Republika Srpska (RS)<br/>Banja Luka<br/>~40% populacije"]
    BIH --> BD["Brčko Distrikt<br/>Poseban status"]

    BIH --> UNO["UNO / ITA<br/>Uprava za neizravno oporezivanje<br/>Jedinstveni PDV za cijelu BiH<br/>www.uino.gov.ba"]

    UNO --> PDV_UNIFIED["PDV — Jedinstvena stopa<br/>17% za cijelu BiH<br/>Nema smanjene stope"]

    FBIH --> FBIH_ACC["Računovodstvo FBiH<br/>Zakon o računovodstvu 2021<br/>IFRS obavezno<br/>Jezik: Bosanski"]
    RS_ENT --> RS_ACC["Računovodstvo RS<br/>Zakon (Sl. glasnik RS 94/15, 78/20)<br/>IFRS obavezno<br/>Jezik: Srpski"]

    FBIH --> FBIH_CIT["Porez na dobit FBiH<br/>10% flat<br/>WHT dividende: 5%"]
    RS_ENT --> RS_CIT["Porez na dobit RS<br/>10% flat<br/>WHT dividende: 10%"]

    style BIH fill:#2c3e50,color:#fff
    style UNO fill:#c0392b,color:#fff
    style PDV_UNIFIED fill:#dc3545,color:#fff
    style FBIH fill:#2980b9,color:#fff
    style RS_ENT fill:#8e44ad,color:#fff
    style BD fill:#6c757d,color:#fff

1. VAT/PDV Rate and Rules [HIGH]

Single Rate System

  • Standard Rate: 17% [HIGH] — applies to all taxable supplies
  • No Reduced Rate: Bosnia and Herzegovina does NOT have a reduced VAT rate [HIGH]
  • Zero Rate (0%): Export of goods is zero-rated [HIGH]

Registration Threshold [HIGH]

  • Mandatory registration: 100,000 BAM (convertibilna marka / convertible mark) [HIGH]
  • Any person making taxable supplies exceeding or likely to exceed this threshold must register as a VAT payer

Filing Frequency [HIGH]

  • VAT period: One calendar month [HIGH]
  • Foreign businesses: Quarterly filing expected [HIGH]

Tax Authority [HIGH]

  • UNO / ITA: Uprava za neizravno oporezivanje (Indirect Taxation Authority) [HIGH]
  • Single institution responsible for VAT calculation and collection throughout BiH
  • Website: www.uino.gov.ba

BiH PDV Filing Flow

flowchart TD
    TRANS["Transakcija (Transaction)"]

    TRANS --> CHECK{"PDV obveznik?<br/>(>= 100.000 BAM)"}

    CHECK -->|Da — VAT registered| CALC["Obračun PDV 17%<br/>Nema smanjena stopa<br/>Izvoz = 0%"]
    CHECK -->|Ne — Below threshold| NOVAT["Bez PDV<br/>Pratiti promet<br/>prema 100K BAM pragu"]

    CALC --> IZDAVANJE["Izdavanje fakture<br/>(sa PDV-om)"]
    CALC --> ULAZNI["Ulazni PDV<br/>(kupovine / troškovi)"]

    IZDAVANJE --> IZLAZNI["Izlazni PDV<br/>(prodaje / prihodi)"]

    IZLAZNI --> PRIJAVA["Mjesečna PDV Prijava<br/>UNO/ITA<br/>Rok: kraj narednog mjeseca"]
    ULAZNI --> PRIJAVA

    PRIJAVA --> NETPDV{"Neto PDV"}
    NETPDV -->|"Izlazni > Ulazni"| UPLATA["Uplata PDV<br/>UNO/ITA"]
    NETPDV -->|"Ulazni > Izlazni"| POVRAT["Povrat PDV<br/>od UNO/ITA"]

    PRIJAVA --> CUVANJE["Čuvanje dokumentacije<br/>Minimum 5 godina"]

    style TRANS fill:#2c3e50,color:#fff
    style CALC fill:#dc3545,color:#fff
    style UPLATA fill:#dc3545,color:#fff
    style POVRAT fill:#198754,color:#fff
    style CUVANJE fill:#6c757d,color:#fff

2. Electronic Invoicing (E-Faktura) [MEDIUM]

Legislative Status [MEDIUM — PENDING]

  • Draft Law: Published and accepted, now with Parliament [MEDIUM]
  • Proposed Mandatory Date: January 1, 2026 [MEDIUM]
  • Status as of Feb 2026: Implementation timelines and secondary regulations still being defined [LOW]

Planned Scope [MEDIUM]

The Draft Law proposes mandatory e-invoicing for:

  • B2G (Business-to-Government): Mandatory
  • B2B (Business-to-Business): Mandatory
  • B2C (Business-to-Consumer): Mandatory for most sectors

Out of Scope:

  • Security and defense
  • Health activities
  • Social protection activities

Technical Format [MEDIUM — PENDING FINAL REGULATIONS]

  • Standard: European Standard EN 16931 compliance required [MEDIUM]
  • B2B/B2G Platform: Central Platform for Fiscalisation (CPF) [MEDIUM]
    • Mandatory use for issuing, transmitting, and validating e-invoices
  • B2C Requirements: Approved Electronic Fiscal Systems (EFS) [MEDIUM]
    • ESET tools
    • Certified fiscal devices

Current Status [LOW — UNCERTAIN]

  • Final technical specifications pending
  • Secondary regulations awaited
  • Implementation may be delayed beyond January 2026
  • RECOMMENDATION: Monitor UNO/ITA website for official announcements

BiH E-Faktura Status (2026)

stateDiagram-v2
    [*] --> Draft_Law: Nacrt zakona objavljen

    Draft_Law --> Parliament: Prihvaćen, upućen Parlamentu

    Parliament --> Pending: Status Feb 2026<br/>Implementacijski rokovi se definišu<br/>Sekundarni propisi čekaju

    Pending --> Enacted: Zakon stupi na snagu<br/>[MOGUĆE Q2-Q3 2026]
    Pending --> Delayed: Odgođeno<br/>[RIZIK — pratiti UNO/ITA]

    Enacted --> Phase_B2G: B2G obavezno<br/>Svi dobavljači vlade

    Enacted --> Phase_B2B: B2B obavezno<br/>Svi PDV obveznici

    Enacted --> Phase_B2C: B2C obavezno<br/>(bez sigurnosti, zdravstva,<br/>socijalne zaštite)

    Phase_B2G --> CPF: Centralna Platforma za Fiskalizaciju (CPF)<br/>EN 16931 standard<br/>UBL 2.1 format

    Phase_B2B --> CPF
    Phase_B2C --> EFS: Odobreni Elektronski Fiskalni Sistemi (EFS)<br/>ESET alati<br/>Certificirani uređaji

    note right of Pending
        Bilko MVP preporuka:
        NE implementirati još
        Pratiti UNO/ITA website
        Implementirati Q2 2026 ako
        zakon stupi na snagu
    end note

3. Chart of Accounts Standard [MEDIUM]

Two-Entity System [MEDIUM]

Bosnia and Herzegovina has two separate accounting frameworks due to its constitutional structure:

Federation of BiH (FBiH) [HIGH]

  • Law: Law on Accounting and Auditing in the Federation (February 24, 2021) [HIGH]
  • Standard: IFRS Accounting Standards (mandatory) [HIGH]
  • Issued by: International Accounting Standards Board (IASB)
  • Translation: Union of Accountants, Auditors and Financial Workers of Federation of BiH publishes IFRS in Bosnian language

Republika Srpska (RS) [HIGH]

  • Law: Law on Accounting and Auditing (Official Gazette of RS No. 94/15 and 78/20) [HIGH]
  • Standard: IFRS Accounting Standards (mandatory) [HIGH]
  • First adopted: 2005, updated 2015
  • Translation: Association of Accountants and Auditors of the Republic of Srpska publishes official Serbian translation

Chart of Accounts Structure [MEDIUM]

Both entities use analytical chart of accounts following traditional Balkan structure:

  • Class 0: Long-term assets (Stalna imovina)
  • Class 1: Current assets (Obrtna imovina)
  • Class 2: Short-term liabilities (Kratkoročne obaveze)
  • Class 3: Capital/Equity (Kapital)
  • Class 4: Long-term liabilities (Dugoročne obaveze)
  • Class 5: Expenses (Rashodi)
  • Class 6: Revenue (Prihodi)
  • Class 7: Cost/Gains-Losses (Troškovi/Dobici-Gubici)
  • Class 8: Off-balance sheet (Vanbilansna evidencija)
  • Class 9: Internal accounting

IFRS for SMEs [MEDIUM]

  • Non-PIEs and SMEs: Can choose between:
    • IFRS for SMEs Accounting Standard, OR
    • Full IFRS Accounting Standards
  • Public Interest Entities (PIEs): Must use full IFRS Standards

4. Record Keeping Requirements [MEDIUM]

Retention Period [MEDIUM]

  • Minimum: 5 years [MEDIUM] for:
    • Employment-related records
    • Tax-related records
    • Accounting documents

NOTE: Some sources indicate retention periods can vary from 5 years to permanent recordkeeping depending on document type. UNVERIFIED — needs local accounting advisor confirmation.

Electronic Storage [MEDIUM]

  • Allowed: Yes, BiH allows retention of accounting documents in electronic form [MEDIUM]
  • Original Form Requirement: Records must be kept in the "original" form in which they were created [MEDIUM]
  • Integrity Requirements: [MEDIUM]
    1. Information integrity must be preserved
    2. Organization must be able to print the information

Entity-Specific Variations [LOW]

Due to BiH's complex constitutional structure (FBiH, RS, Brčko District, 10 Cantons in FBiH), legislation may be introduced at multiple administrative levels. Specific retention requirements may vary by entity — requires verification with local advisor.

5. MVP Impact Assessment

MVP-CRITICAL (Must Have for Legal Operation)

  1. PDV (VAT) Calculation [HIGH PRIORITY]

    • Single rate: 17% on all taxable supplies
    • Zero-rate for exports
    • VAT report generation for monthly filing
    • Registration threshold tracking (100,000 BAM)

  2. Chart of Accounts — Dual Support [HIGH PRIORITY]

    • Support BOTH FBiH and RS accounting frameworks
    • IFRS-compliant account structure
    • Entity selection during company setup (FBiH vs RS vs Brčko)
    • Bosnian/Serbian language support for account names

  3. Electronic Record Storage [MEDIUM PRIORITY]

    • 5-year minimum retention
    • Original format preservation
    • Print capability for all stored records

FUTURE (v2 or Phase 2)

  1. E-Invoicing (E-Faktura) [MEDIUM PRIORITY — WATCH & WAIT]

    • NOT CRITICAL FOR MVP — legislation still pending
    • Monitor UNO/ITA for final regulations
    • Target implementation: Q2-Q3 2026 (if mandate proceeds)
    • Features needed:
      • EN 16931 XML generation
      • Central Platform for Fiscalisation (CPF) API integration
      • Electronic Fiscal Systems (EFS) for B2C

  2. Advanced IFRS Features [LOW PRIORITY]

    • Full IFRS vs IFRS for SMEs selector
    • Consolidated financial statements
    • Multi-currency for PIEs

  3. Brčko District Support [LOW PRIORITY]

    • Separate administrative unit with potential unique requirements
    • Low priority unless targeting this market

Implementation Notes for Bilko

Critical Decisions

  1. FBiH vs RS Default?

    • Most commercial activity in FBiH (Sarajevo)
    • Consider FBiH as default, RS as option
    • OR: Entity selector during onboarding

  2. IFRS Compliance

    • Full IFRS implementation is complex
    • Consider IFRS for SMEs as MVP scope
    • Partner with local accounting firm for IFRS mapping

  3. Language Requirements

    • Bosnian language support MANDATORY
    • Serbian Cyrillic optional (RS uses Latin + Cyrillic)
    • English for international users (optional)

Risks

  • E-Invoicing Uncertainty: Timeline and requirements not finalized
  • Two-Entity Complexity: Different laws, different translations
  • IFRS Compliance: May be overkill for micro-businesses (under 100K BAM threshold)
  • Language Barrier: Official documentation in Bosnian/Serbian only

Recommendations

  1. Launch without E-Invoicing: Wait for final regulations before implementing
  2. Partner with BiH Accounting Firm: For IFRS guidance and entity-specific requirements
  3. Localize Interface: Bosnian language MUST be primary
  4. Monitor UNO/ITA: Set up alert for e-invoicing regulation updates

UNVERIFIED ITEMS — NEEDS LOCAL ADVISOR REVIEW

  1. Exact retention period per document type: Ranges from 5 years to permanent — need detailed matrix
  2. Digital certificate requirements for e-invoicing: Not yet published
  3. CPF platform technical specs: Awaiting secondary regulations
  4. Brčko District unique requirements: Unclear if different from FBiH/RS
  5. Canton-level variations in FBiH: 10 cantons may have specific rules

Sources

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