New VAT Rules to Take Effect from August 6

(Patria) - The Indirect Taxation Authority informs all VAT payers that from August 6, 2025, the Rulebook on Amendments and Additions to the Rulebook on the Application of the Value Added Tax Law will come into force. This rulebook was adopted at the 9th session of the Indirect Taxation Authority's Management Board and published in the "Official Gazette of BiH", number: 25/25 of April 29, 2025.

These amendments and additions introduce important clarifications and facilitations in the application of VAT regulations, with key novelties relating to:

- the inclusion of the procurement of special tools used in the production process in ancillary turnover,
- the exclusion from exchange of electricity supply from renewable sources by small producers - non-VAT payers,
- a more flexible procedure for writing off inventory,
- a more precise definition of low-value gifts,
- clarification of the place of taxation for electronically supplied services,
- definition of the tax base for the turnover of services referred to in Article 9 of the VAT Law and the base for the mutual supply of electricity from renewable sources between VAT payers and small producers - non-payers,
- redefinition of Article 54 of the Rulebook, which relates to the conditions for VAT refund in accordance with Article 29 of the VAT Law (VAT refund for diplomatic and consular missions and international organizations, as well as mission members with family members, and supply of goods and services within international projects),
- redefinition of Article 68 of the Rulebook related to the deduction of input VAT for fixed assets acquired before registration as a VAT payer,
- a more complete definition of the term subcontractor under the special scheme in construction,
- redefinition of the right to VAT refund related to the value of goods by travelers, including an increase in the threshold for the total value of goods stated on the "PDV-SL-2" form for exercising the right to VAT refund (from the current KM 100 to KM 200),
- new PDV-SL 2 form and CD PDV 1 M form, and other amendments.

The Authority takes this opportunity to remind all payers once again of the importance of timely preparation for the application of the new rulebook, in order to ensure lawful and efficient application of tax regulations.

For additional information, visit the official website of the Indirect Taxation Authority: www.uino.gov.ba or write to us at the email address [email protected]