The Rulebook on the Application of the Law on Value Added Tax (VAT), which regulates the exercise of the right to a VAT refund when purchasing the first real estate, enters into force tomorrow, which will allow citizens to submit requests for the exercise of this right for the first time.
Representatives of the Indirect Tax Administration (ITA) of Bosnia and Herzegovina at today’s press conference in Banja Luka presented the details of the application of the rulebook and clarified the procedure that citizens will have to go through in order to obtain a refund of the VAT paid.
Requests will be submitted according to the headquarters of the real estate seller, that is, in the competent regional centers of the ITA in Banja Luka, Sarajevo, Tuzla or Mostar.
The ITA states that citizens will be able to submit the request until the end of the year, while the right to a refund applies exclusively to newly built apartments and houses for which VAT has been calculated and paid, and which were registered to the buyer after April 12, 2025.
The director of the ITA BiH, Zoran Tegeltija, said that the changes to the VAT Law were adopted last year, but that it was also necessary to pass corresponding by-laws so that the law could be applied.
“Citizens are very interested in this amendment to the law. It will take a lot of documentation and time to realize the right to a VAT refund,” said Tegeltija.
He also emphasized that there is no limit when it comes to the value of real estate, that is, that the law does not prescribe a maximum amount for an apartment or house, the purchase of which can be used to exercise the right to a refund.
Speaking about the conditions, Milica Vidović from the ITA stated that the applicant must not be the owner or co-owner of real estate, nor was he allowed to own real estate in the last seven years. The same condition applies to members of his family household.
The buyer can exercise the right to a VAT refund for an area of up to 40 square meters, with an additional 15 square meters for each member of the household who does not own a property.
Along with the request, it will be necessary to attach a birth certificate, marriage certificate, certificate of residence from CIPS, as well as other prescribed documentation, while the ITA will officially verify the fulfillment of all legal requirements.
The ITA warns that any user who is subsequently found to have exercised the right on the basis of incorrect data will have to return the entire refund amount together with default interest.
As it was pointed out, the maximum amount of refund can amount to approximately 25,000 KM, depending on the average price of the residential space and the square footage for which the buyer is entitled to a refund, it says Klix.
