Bosnia and Herzegovina: Instruction on indirect tax exemption under Instrument for Pre-Accession Assistance Programme II

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bosnia and Herzegovina: Instruction on indirect tax exemption under Instrument for Pre-Accession Assistance Programme II

Vujasinovic

Igor Vujasinovic

On November 11 2015, a new Instruction issued by the director of the Indirect Tax Authority of Bosnia and Herzegovina entered into force. The Instruction was published in the Official Gazette of Bosnia and Herzegovina on November 30 2015.

Under the title "Instruction on claiming customs duties and taxation payment exemption in accordance with the Framework Agreement between Bosnia and Herzegovina and the Commission of the European Communities on the rules for cooperation to implement EC financial assistance to Bosnia and Herzegovina under the Instrument for Pre-Accession Assistance (IPA II)", the document defines in detail the rules and procedures for exemption from VAT and other indirect taxes (excises and road fees) in regard to supplies of goods and services financed by the Instrument for IPA II.

IPA II is part of a pre-accession programme which supports structural reforms in pre-defined sectors and areas as well as helping to introduce EU standards. IPA II covers the period 2014-2020 and is a successor of the first IPA programme. In taxation terms, the major differences between IPA II and IPA are the following:

  • IPA introduced a VAT exemption for goods and services supplied within approved projects. IPA II, in addition to the VAT exemption being available to all suppliers under the projects of IPA II, exempts suppliers of oil for the approved projects from payment of excises and road fees as well; and

  • IPA II introduces refunds of VAT for businesses which paid VAT for supplies for projects financed by IPA II during the so-called legal vacuum period preceding the entry into force of the IPA II agreement. Businesses that supplied oil for approved projects will be granted a refund of the VAT, excises, and road fees paid only on supplies performed for projects of IPA II.

Igor Vujasinovic (igor.vujasinovic@eurofast.eu), Bosnia office

Eurofast

Tel: +387 51 961 610

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

ITR’s data has highlighted the US firm’s ambition to become America’s ‘premier’ tax player via a concerted partner recruitment strategy
Jaap Zwaan’s arrival continues a recent streak of A&M Tax investing in the region; in other news, the US and Japan struck a deal that significantly lowered tariff rates
In a world where international tax concepts rely on human activity, Leonard Wagenaar poses existential questions about the future of such ideas when AI is ever-present
France v Axa provides a practical illustration of how the burden of proof is applied in TP matters under French law, ITR also heard
In an exclusive interview with ITR, Ian Gary calls for a central public CbCR database and bemoans the US’s lack of involvement in international tax transparency
Reckitt Benckiser is to divest its Essential Home business, which includes more than 70 brands, to private equity firm Advent International
In the first of a new series of weekly opinion pieces, ITR Editor Tom Baker reflects on the OECD’s attempts to sanitise the US’s brazen pillar two negotiations
The threat of 50% tariffs on Brazilian goods coincides with new Brazilian legal powers to adopt retaliatory economic measures, local experts tell ITR
The country’s chancellor appears to have backtracked from previous pillar two scepticism; in other news, Donald Trump threatened Russia with 100% tariffs
In its latest G20 update, the OECD also revealed tense discussions with the US where the ‘significant threat’ of Section 899 was highlighted
Gift this article