The director of the Indirect Taxation Administration of Bosnia and Herzegovina (UIOBiH), Zoran Tegeltija, said that, according to projections, this year the Administration planned to collect 10.221 billion BAM in gross revenue from indirect taxes, which is a three percent increase compared to last year.
“The results that have been achieved so far show that we have a 7.4 percent increase in income. As of October 19, 8.54 billion BAM were collected, or 587 million BAM more compared to the same period last year,” said Tegeltija in an interview.
He expressed the expectation that, considering the current economic situation and inflation that is present in all countries, including in Bosnia and Herzegovina, and considering economic trends, this growth in income will be maintained until the end of the year.
A decision on the allocation coefficients for the fourth quarter will be made soon
Tegeltija, speaking about the distribution of income from indirect taxes, said that the coefficients are currently being applied in accordance with the latest decision adopted by the ITA Management Board, and it is about the decision to establish temporary coefficients for the distribution of funds from the Single Account for the period July-September. according to which 34.44 percent belong to the Republic of Srpska, 62.01 percent to the Federation of Bosnia and Herzegovina and 3.55 percent to the Brčko District of Bosnia and Herzegovina.
He stated that at the next session of the Board of Directors, which is expected in the coming days, a decision on the temporary coefficients for the distribution of income from the Single Account for the fourth quarter of this year should be adopted.
Tegelti evaluated as a particularly good fact that the Management Board regularly adopts all decisions on the current distribution of income from indirect taxes, as well as decisions on temporary settlements, all on the basis of data on final consumption extracted from the ITA system.
He explained that it is about final consumption data that VAT payers enter into the Administration’s system through their VAT returns, after which the ITA controls these data and thus ensures their reliability.
“For a complex country such as Bosnia and Herzegovina, it is necessary to have a completely clean account when it comes to the distribution of income, and I believe that the Administration ensures that,” Tegeltija pointed out.
It is not possible to divide the income according to the place of payment
Speaking about the proposals that have been coming from the Federation of Bosnia and Herzegovina in recent months that revenues from indirect taxes be divided according to the place of payment, Tegeltija said that this is not possible.
“This is not possible for a very simple reason, which is the fact that a large number of companies based in the Federation of Bosnia and Herzegovina have business units and sales points in the Republic of Srpska and vice versa. All these companies submit only one VAT return in the place where they have their registered office and in that place they pay the VAT, which was paid by the citizens of the Federation of Bosnia and Herzegovina, Republika Srpska, and Brčko District as final consumers,” explained Tegeltija.
For this reason, he believes that the distribution system from the ITA Single Account is only possible according to final consumption, i.e. that each entity receives as much funds from indirect taxes as final consumption was realized in that period.
Tegeltija stated that the data on final consumption is a variable category and, depending on certain economic trends, investments and investments, these data in a certain period will be somewhat higher in the RS, and in another period in the FBiH.
“That’s why it’s good that during one year, four decisions are made on temporary coefficients for the distribution of income from the ITA Single Account, and two decisions on settlements, the first after six months, and the second after 12 months. In this way, we arrive at the fact that everyone gets exactly what belongs to him”, pointed out Tegeltija, Srna reports.
