Indirect Taxation Authority Management Board: Draft regulation on VAT refund in public consultations, but again no agreement on excise duties

(Patria) - The Management Board of the Indirect Taxation Authority (ITA) of BiH at its 10th regular session sent the Draft Regulation on Amendments and Supplements to the Regulation on the Application of the VAT Law into public consultations, which relates to the purchase of the first property. Interested parties will have 15 days to provide comments and suggestions via the ekonsultacije.gov.ba portal.

The regulation prescribes in more detail the required documentation, the maximum area of residential space, and proof that the buyer has not previously owned property. After the completion of public consultations, the Management Board will issue a statement on the act, which will also initiate the process of VAT refund for the first property, as foreseen by the VAT Law which entered into force in April this year.

A decision was also adopted on the quantities of diesel fuel on which road tax is not paid for 2025 – "Željeznice FBiH" (Railways of FBiH) are exempted for 2.88 million liters, and "Željeznice RS" (Railways of RS) for 1.06 million liters. Compensatory interest in the second half of the year remains at 12 percent, and amendments to the regulation on the payment of indirect taxes include new banks for transferring funds to the Single Account.

However, no agreement was reached at this session regarding the distribution of revenue from fuel excise duties, i.e., road tolls, nor on temporary coefficients for the period July-September 2025, nor on the temporary settlement for 2023 and 2024.

The ITA Management Board also adopted the work and budget execution reports of the Authority for 2024.