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The Draft Law on Amendments to the Law on Value Added Tax adopted in BiH

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Summary
The proposed Amendments were concerning lowering of VAT for the supply of certain goods and services and a higher VAT rate for luxury items.
Content

The changes from this regulation would include lowering the VAT rate for the supply of products such as medicines, flour, bread, milk and dairy products, sugar, etc. for which a reduced VAT rate of 5% will apply. On the other hand, the changes stipulate a higher VAT rate for many luxury products to be taxed at a rate of 22%.

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