The House of Representatives of the Parliamentary Assembly of BiH adopted the Law on Amendments to the Law on Value Added Tax, i.e. the introduction of a differentiated VAT rate. Instead of the previously proposed rate of five percent, the VAT rate on basic foodstuffs will be zero.
At today’s session, the report of the Joint Commission of both houses of the Parliamentary Assembly on achieving an identical text of the Law on Amendments to the Law on Value Added Tax was adopted.
The harmonized text of the law in Bosnia and Herzegovina introduces a differentiated VAT rate of zero percent on basic foodstuffs, food and equipment for children, seed and planting material, and of 22 percent on luxury goods, while the previous single rate would apply to other products and services, hence VAT rate of 17 percent.
According to the agreed amendments to the Law, the Directorate for Indirect Taxation (ITA) of BiH is in charge of specifying to which goods these VAT rates will be applied, the application of which is time-limited until December 31.
