The Administration for Indirect Taxation of Bosnia and Herzegovina has announced that during 2026, it will begin to intensify controls on taxpayers engaged in construction activities, that is, the construction and sale of residential and commercial buildings in Bosnia and Herzegovina.
As they stated in the announcement, the reasons for the increased controls on taxpayers engaged in construction in Bosnia and Herzegovina are the analyzes done by the ITA, where certain illogicalities were shown.
“The analysis established that there are persons in BiH who are engaged in the construction of collective residential and residential-business buildings, and through the sale of apartments and business premises they realize transactions that exceed the prescribed threshold for mandatory registration for VAT, and they are not registered in the Unified register of indirect tax payers of the ITA, nor have the ITA submitted a request for VAT registration,” they stated in a statement.
They add that it has been established that there is a risk of lost income for registered VAT payers engaged in construction due to non-reporting of the sale of apartments and business premises for which building and use permits have been issued.
“In this regard, we hereby invite persons who are not registered for VAT, but are engaged in the taxable turnover of immovable property, and on that basis achieve a turnover of over 100,000 KM in one calendar year, to submit a request for VAT registration to the Directorate for Indirect Taxation”, they point out.
Also, they invited all taxpayers from the mentioned area to once again check their previously submitted VAT returns in the coming period and whether they have reported all realized turnover and correctly calculated their VAT liability.
“If they discover errors, we invite them to submit amended VAT returns themselves in order to fully fulfill their legal obligation,” they concluded, it says. Klix.
