NS BiH Pays Millions in Taxes and Operates Properly

In response to tendentious reports published in some media concerning the VAT calculation control of the Football Federation of Bosnia and Herzegovina (NS/FS BiH), carried out by the competent Indirect Taxation Authority of BiH, we wish to inform the public of the following facts:

- The control was carried out for the business period from 01/08/2011 to 30/09/2015, and an assessment of indirect taxes was determined in the total amount of 839,186 KM, of which 322,404.92 KM relates to 2015, during which the control was carried out and completed before the end of the year and that accounting period.

NS/FS BiH will explain certain objections to the competent authority's decision on tax assessment in further proceedings. First and foremost, we believe there is no basis for paying VAT on invitations and complimentary tickets for national team matches as they are free, and a previous control by the competent VAT authority did not calculate or indicate a tax obligation on this basis, which suggests a possible different interpretation of legal regulations. Furthermore, there are differing interpretations regarding the payment of VAT for financial resources received from FIFA and UEFA for the equipment of the NS/FS BiH Training Centre, which is intended for the stay and training of all national teams, without generating any profit on this basis. Also, there are differing opinions on the obligation to pay VAT for dedicated funds that NS/FS BiH secured through FIFA and UEFA project funds and directed entirely as humanitarian aid to clubs affected by the catastrophic floods of 2014, for infrastructure reconstruction.

However, regardless of the aforementioned remarks, the determined obligations in the total amount of 839,186.00 KM have been paid to the account of the Indirect Taxation Authority, as filing an appeal does not postpone the execution of the decision in question.

It is also necessary to emphasize that during the period covered by the control, there were certain procedural omissions in invoicing and VAT calculation by some NS/FS BiH sponsors, but there were no abuses, other illegal and punishable actions, or tendencies to avoid paying obligations. The omissions are a consequence of different interpretations of VAT calculation and payment obligations, as well as the preoccupation of administrative staff responsible for specific tasks due to other activities, especially due to several controls by other authorities in the same period.

NS/FS BiH has paid a total of 3,130,426.58 KM in direct and 1,369,648.58 KM in indirect taxes from 2011 to 2015 (not including duly paid contributions for pension and disability insurance, health insurance, elemental and water disasters, etc.), thereby confirming that as a legal entity, it fulfills all legal obligations towards the state, which were not disputed for any reason.

From the foregoing, the constant readiness of NS/FS BiH for transparent and lawful operation is evident, which was also confirmed in proceedings previously conducted based on anonymous reports. Although we do not receive any financial assistance from state bodies, huge losses incurred in the period up to 2010 have been successfully remedied, and after the suspension by FIFA and UEFA in 2011, the Association has operated profitably in every fiscal year and, through numerous projects, has secured significant financial resources from abroad for the state of Bosnia and Herzegovina. Along with financial consolidation, organizational consolidation was also carried out, and historic qualification for the World Cup in Brazil in 2014 was achieved.

It is evident that this is a continuation of a campaign against NS/FS BiH, as dissatisfied individuals in various structures are trying to minimize our success through insinuations and anonymous reports and to block us in our work and development.