New blow to the energy sector in FBiH: Indirect Taxation Authority calculated VAT on the difference in coal prices, mines must pay 21 million KM

(Patria) - The Indirect Taxation Authority (UIO) of BiH has determined additional VAT obligations with interest for coal mines in FBiH in the amount of 21 million KM, which are part of the Elektroprivreda BiH concern.

According to the UIO's finding, the basis for the additional VAT obligation is the sale of coal to Elektroprivreda BiH at a price below market value, writes Istraga.ba.

The UIO concluded that the market price cannot be determined, and the additional VAT obligation was determined by comparing the selling price and the cost price.

The highest VAT obligations were determined for the Kreka and Đurđevik mines, which sold their entire production of fine coal exclusively to EPBiH, without other buyers.

The coal mines have filed appeals with the UIO, citing the fact that the mines do not influence the formation of coal prices towards Elektroprivreda, but rather that it is defined by a decision of the FBiH Government.

According to the Law on the Indirect Taxation Procedure, an appeal does not postpone the execution of the UIO's decision, thus the mines are obliged to pay the additionally determined VAT obligations (principal and interest).

The Đurđevik mine for the period from 12/1/2020 to 10/31/2023 is obliged to pay 3.6 million KM for VAT obligations and 1.1 million KM in interest.

The Kreka mine for the period from 7/1/2021 to 4/30/2024 is obliged to pay additional VAT in the amount of 12.7 million KM and 3 million in interest.

Other coal mines in the concern must pay significantly lower VAT amounts, but without interest.

The Zenica mine for the period from 9/1/2021 to 11/30/2023 must pay 96 thousand KM for VAT obligations, the Abid Lolić Bila mine 51 thousand KM, and the Breza mine 426 thousand KM.