Employers from FBiH and RS Call on the House of Representatives of the BiH PS to Adopt Proposed VAT Law Amendments

(Patria) - The Employers' Association in the Federation of Bosnia and Herzegovina and the Employers' Union of Republika Srpska call on the MPs of the House of Representatives of the Parliamentary Assembly of Bosnia and Herzegovina to adopt the proposed amendments to the Law on Value Added Tax of Bosnia and Herzegovina at the session scheduled for Wednesday, July 5, 2023. With the proposed amendments, VAT would be paid on the last day of the month, instead of the 10th of the month as is currently the case.

Employers emphasize that the current deadline is too short for some taxpayers, especially if there are two weekends and a holiday during this period, and if a taxpayer fails to submit a return within the legally prescribed period, they are fined.

Furthermore, the amendments to the BiH VAT Law provide for an increase in the threshold for mandatory registration from the current 50,000 to 100,000 KM, which would significantly
simplify and facilitate the business operations of micro and small enterprises in BiH.

"We remind you once again that UPFBiH, in its document 'What Employers
Expect from the Authorities', which we sent to all political parties on the eve of the elections last year, submitted our proposal for amendments to the VAT Law, which aim to
facilitate business operations for economic entities in BiH, strengthen the competitiveness of the BiH economy, and harmonize tax policy in the area of indirect taxes with the countries of the region and the member states of the European Union," stated UPFBiH.

In addition to the amendments to the VAT Law, which will be before the MPs
of the House of Representatives of the BiH Parliament on Wednesday, concerning the postponement of the VAT payment deadline to the last day of the month for the previous month and the increase of the threshold for mandatory registration from the current 50,000 to 100,000 KM, UPFBiH has requested an amendment that abolishes the right to deductible VAT for an unpaid invoice.