# 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

```mermaid
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

```mermaid
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)

```mermaid
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

- [Bosnia and Herzegovina VAT System | Indirect Taxation Authority](https://www.uino.gov.ba/portal/en/vat/general-information-on-vat-system-in-bosnia-and-herzegovina/)
- [Bosnia and Herzegovina - Corporate - Other taxes | PwC](https://taxsummaries.pwc.com/bosnia-and-herzegovina/corporate/other-taxes)
- [Bosnia and Herzegovina to Implement Mandatory E-Invoicing | VATupdate](https://www.vatupdate.com/2026/02/04/bosnia-and-herzegovina-to-implement-mandatory-e-invoicing-and-real-time-reporting/)
- [All About E-Invoicing in Bosnia and Herzegovina | DDDInvoices](https://dddinvoices.com/learn/e-invoicing-bosnia-and-herzegovina)
- [IFRS in Bosnia and Herzegovina | IFRS Foundation](https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/view-jurisdiction/bosnia-and-herzegovina/)
- [Accounting standards in BiH | Diaspora Invest](https://diasporainvest.ba/activities/accounting-standards-in-bih/)
- [Record Retention in Bosnia and Herzegovina | FilersKeepers](https://www.filerskeepers.co/product/bosnia-data-retention-schedule/)
- [Electronic Records Requirements | ARMA Magazine](https://magazine.arma.org/2021/01/which-records-should-we-retain-in-paper-a-global-guide-to-media-location-and-transfer-compliance/)