The Administration for Indirect Taxation of Bosnia and Herzegovina announced increased controls of apartment renters for a short period of time, after an analysis determined that a significant number of them are not registered in the VAT system, even though they generate turnover above the legal threshold.
The ITA of BiH states that controls on the ground will be carried out in two cycles during 2026, the first of which will begin in June. It will cover all taxpayers in the territory of Bosnia and Herzegovina, regardless of their activity or organizational affiliation.
A special focus will be on those who deal with short-term rentals, and have an annual turnover of more than 100,000 KM, and are not registered for VAT. The Administration invites such persons to submit a request for registration as soon as possible in order to avoid sanctions and registration ex officio.
At the same time, registered VAT payers were recommended to additionally check their bookkeeping records and submitted applications, and correct any irregularities before the start of inspections, in order to reduce the number of misdemeanor orders.
The ITA of BiH particularly warns about the obligations of those who use foreign rental platforms, such as Booking.com, Airbnb and LockTrip. In these cases, there is an obligation to calculate and pay VAT on services received, regardless of the amount of annual turnover.
The Administration reminds that short-term rental is recognized as a risky area within the Strategy for Improving Compliance with Regulations for the period 2025-2027, which is why in 2026 inspection supervision will be specifically focused on this activity, reports Tuzla Info.
