Bosnia and Herzegovina VAT reminder for foreign providers selling digital services

28 April 2023

The Balkan state of Bosnia and Herzegovina (B&H) has recently sought to remind non-resident suppliers of electronic services that they may have a VAT registration requirement in the country if selling to consumers.

Since January 2023, VAT has been imposed on the sale of electronic services by non-resident businesses to local consumers, and this was introduced to remove the unfair advantage that not charging VAT gave non-resident companies over resident providers.

The new tax charged at a rate of 17% will require foreign providers of electronic services to register for VAT via a local representative if they exceed an annual registration threshold of BAM 50,000 (approx. £22,475).

This tax will apply to a range of electronic services, including streaming games, music, apps, films, e-books, e-journals, software, and internet services.