Foreign citizens purchased goods worth 40.5 million KM in Bosnia and Herzegovina during the first six months of 2026, claiming 5.8 million KM in VAT refunds, according to data from the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina.
Most foreign shoppers came from neighboring Serbia, Croatia and Montenegro, with consumer goods, basic food products, household items and textiles among the most frequently purchased products.
Between January and June, foreign visitors submitted 95,597 VAT refund requests, a significant decline compared to the 150,647 requests filed during the same period last year.
The total value of purchases also fell compared to 2025. In the first half of last year, foreign citizens bought goods worth 47.2 million KM and claimed 6.8 million KM in VAT refunds.
According to the ITA, one of the reasons behind the decline is the implementation of a new VAT refund regulation that entered into force on August 4, 2025. Under the new rules, the minimum value of goods eligible for a VAT refund was increased from 100 KM to 200 KM.
The authority also reminded shoppers that VAT refunds do not apply to exports of mineral oils, including diesel and gasoline, nor to alcohol, alcoholic beverages, tobacco and tobacco products.
Despite the changes, neighboring countries’ citizens continue to see Bosnia and Herzegovina as an attractive shopping destination.
Snežana Šešlija, president of the Doboj-based citizens’ association “ToPeeR”, said lower prices remain the main reason.
“We are attractive to our neighbors because prices here are relatively lower than in their countries. Once they receive a VAT refund, shopping becomes around ten percent cheaper,” she said.
Šešlija believes the minimum purchase threshold for VAT refunds should be raised even further, suggesting it should range between 300 KM and 500 KM.
She also noted that, unlike foreign shoppers, citizens of Bosnia and Herzegovina rarely take advantage of VAT refund schemes when shopping abroad.
“Our citizens seldom use these benefits in European countries because many believe the procedure is too complicated. Only a small number claim VAT refunds, largely due to a lack of financial literacy,” Šešlija said.
Historical data show that 2019 remains the record year for foreign shopping in Bosnia and Herzegovina, with purchases totaling 135.9 million KM and nearly 20 million KM returned through VAT refunds. Since the COVID-19 pandemic, however, the annual value of purchases by foreign visitors has not exceeded 100 million KM.
