Bosnia and Herzegovina VAT Guide for 2026: Rates, Registration & Compliance
Bosnia and Herzegovina applies a flat 17% VAT. This guide explains the registration threshold, taxable scope, and filing obligations.
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Key Takeaways
Bosnia and Herzegovina applies a single VAT (PDV) rate of 17% to nearly all goods and services, including SaaS and digital products, with no reduced rate and zero-rated exports. As a non-EU country, the EU's EUR 10,000 threshold does not apply — a business registers once turnover reaches BAM 100,000, and foreign providers of electronically supplied services must register through a locally established entity or tax representative. Financial services, insurance, education, and public postal services are exempt.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Sales Tax Rates
Bosnia and Herzegovina applies a single VAT (PDV) rate of 17% to nearly all goods and services, including SaaS and digital products sold to consumers [2]. There is no reduced rate, and exports are zero-rated:
Rate | Applies to |
|---|---|
17% (standard) | nearly all goods and services, SaaS, and digital services |
0% (zero) | exports |
Electronically supplied services to recipients in Bosnia and Herzegovina are taxed at 17%, and foreign providers must appoint a tax representative and register under the 2025 VAT Rulebook [2][3].
Bosnia & Herzegovina VAT Calculator
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Bosnia & Herzegovina · PDVRates as of August 2026. Source: ITA BiH: Law on VAT (opens in a new tab).
Bosnia & Herzegovina · Standard rate
17%
PDV rate
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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.
Registration & nexus threshold
Bosnia and Herzegovina is outside the EU, so the EU One Stop Shop and the EUR 10,000 threshold do not apply. A business registers for VAT once turnover reaches BAM 100,000 [2]. A foreign provider of electronically supplied services to consumers in the country must register through a locally established entity or a tax representative [3]. Registration steps are in the How to Register section.
Filing frequency & deadlines
VAT is reported monthly, with the return and payment due by the 10th of the following month [1].
Exemptions
Exempt supplies include financial services, insurance and reinsurance, education, public postal services, long-term residential leasing, and the supply of immovable property other than the first transfer of newly built property [2]. Exports are zero-rated [2].
Penalties
Failure to calculate or pay VAT carries a penalty of 50% of the VAT due, with a minimum of BAM 100, and a late VAT return carries a fine of BAM 300 [1][2].
Sources
[1] Indirect Taxation Authority — VAT system in Bosnia and Herzegovina (single 17% rate)
[2] Indirect Taxation Authority — Registration threshold (BAM 100,000)
[3] Indirect Taxation Authority — Notice to foreign providers of electronic services
Verified July 2026 against the Indirect Taxation Authority of Bosnia and Herzegovina guidance.
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