The implementation of changes that envisage the introduction of a differentiated VAT rate in BiH

The latest information from the Federation of Bosnia and Herzegovina, in order for everything to be ready for the implementation of changes that envisage the introduction of a differentiated VAT rate in BiH, it takes at least six months from the day of the adoption of the Law. It takes a minimum of six months from the date of adoption of the Law on VAT, which provides for the introduction of a differentiated VAT rate in BiH, for everything to be ready for its implementation.

According to the Paragraf.ba they confirmed that Indirect Taxation Authority of BiH, after the House of Peoples of the Parliamentary Assembly of BiH adopted the Law on Value Added Tax on Wednesday. The law is not yet in force, because it was not adopted in the same text in which it was adopted by the House of Representatives of the BiH Parliament, so it was sent to the commission for harmonization of the text.

The law provides for the introduction of a 5 % VAT rate, which would apply to basic foodstuffs - flour, bread, milk, dairy products, infant food made from milk, oil, salt, sugar, animal feed, seeds and planting material, and from 22 % for luxury goods such as wine and alcoholic beverages, cigarettes, cars, perfumes, jewelry and weapons. 

The amendment to the adopted amendments to the Law requested that the VAT on basic foodstuffs be completely abolished.