# Bosnia and Herzegovina VAT Guide for 2026: Rates, Registration & Compliance

Canonical: https://trykintsugi.com/sales-tax-guides/europe/bosnia-and-herzegovina
Published: September 22, 2026

Bosnia and Herzegovina applies a flat 17% VAT. This guide explains the registration threshold, taxable scope, and filing obligations.

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## 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

## 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].

#### 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)](https://www.uino.gov.ba/portal/en/vat/general-information-on-vat-system-in-bosnia-and-herzegovina/)

- [2] [Indirect Taxation Authority — Registration threshold (BAM 100,000)](https://www.uino.gov.ba/portal/en/news/the-threshold-for-entering-the-vat-system-has-been-increased-to-bam-100-000/)

- [3] [Indirect Taxation Authority — Notice to foreign providers of electronic services](https://www.uino.gov.ba/portal/en/news/notification-to-foreign-providers-for-services-provided-in-bh-electronically/)

Verified July 2026 against the Indirect Taxation Authority of Bosnia and Herzegovina guidance.

#### Frequently asked questions

### What is the VAT rate in Bosnia and Herzegovina in 2026?

Bosnia and Herzegovina applies a single VAT rate of 17% to nearly all goods and services. There is no reduced rate, and exports are zero-rated.

### Do foreign digital businesses need to register for VAT in Bosnia and Herzegovina?

Yes. Foreign providers of electronically supplied services must appoint a tax representative and register once their taxable turnover in Bosnia and Herzegovina exceeds the BAM 100,000 VAT threshold.

### Is SaaS taxable in Bosnia and Herzegovina?

Yes. SaaS and other electronically supplied services are taxed at the 17% standard rate.

### What is the VAT registration threshold in Bosnia and Herzegovina?

BAM 100,000 (about EUR 51,129) for established businesses, doubled from BAM 50,000 in December 2023. The same threshold applies to foreign providers of electronic services.

### How often are Bosnia and Herzegovina VAT returns filed?

Monthly, with the return and payment due by the 10th of the following month.

### What are the penalties for late VAT in Bosnia and Herzegovina?

Failure to calculate or pay VAT costs 50% of the VAT due (minimum BAM 100), and a late return costs BAM 300.