All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

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 & bottom lb ros

More from across our site

The companies have criticised proposals for the gig economy, while the UK and EU VAT gaps have fallen in percentage terms, and ITR speaks to a European Commission adviser about its VAT reforms.
Corporations risk creating administrative obstacles if the pillar two rule is implemented too soon, sources say.
Important dates for the Women in Business Law Awards 2023
The Italian government published plans to levy capital gains tax on cryptocurrency transactions, while Brazil and the UK signed a new tax treaty.
Multinational companies fear the scrutiny of aggressive tax audits may be overstepping the mark on transfer pricing methodology.
Standardisation and outsourcing are two possible solutions amid increasing regulations and scrutiny on transfer pricing, say sources.
Inaugural awards announces winners
The UN’s decision to seek a leadership role in global tax policy could be a crucial turning point but won’t be the end of the OECD, say tax experts.
The UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.