Finance Committee Supports Initiative: Introduce Tax in BiH for Facebook, Google, YouTube

(Patria) - The Finance and Budget Committee unanimously adopted the initiative for the Council of Ministers to prepare amendments to the VAT Law to regulate digital services tax!

We remind you, Saša Magazinović, SDP MP in the BiH Parliament, submitted an initiative for the adoption of the Digital Services Tax Law.

According to this proposal, companies like Facebook, Google, and YouTube would pay tax in our country.

"If our small companies pay tax, there is no reason why Facebook, Google, and YouTube should not pay tax either," said Magazinović.

This initiative obliges the Council of Ministers of Bosnia and Herzegovina to prepare and submit the digital services tax law to the parliamentary procedure within 60 days.

"Large global digital technology companies have significantly increased advertising, intermediation, and sales of user interface data in Bosnia and Herzegovina in recent years. However, according to all available information, they do not pay taxes in Bosnia and Herzegovina for the services they perform," the explanation states.

The current legal framework and taxation principles are outdated and based on 20th-century business models, it is added. The right of a state, in this case Bosnia and Herzegovina, to collect taxes is currently linked to the physical presence of a company (or branch) in a particular country.