That the neighbors are still happy to shop in Bosnia and Herzegovina (BiH) is confirmed by the data of the Indirect Taxation Authority (ITA) of BiH, according to which foreign citizens were granted a refund of 3.34 million BAM VAT in four months of this year, which is almost half a million more compared to the same period last year.
According to the data of the ITA BiH, from January to the end of April this year, foreigners bought goods worth 23.02 million BAM in BiH, for which 76.405 VAT refund requests were received.
In the same period last year, the ITA BiH received 68.355 VAT refund requests for purchased goods in the value of 20.09 million BAM, and 2.92 million BAM was returned to foreigners on this behalf.
“In BiH, citizens of neighboring countries, i.e. citizens of Serbia, Croatia, and Montenegro, made the most purchases, and the most common items were consumer goods,” ITA BiH stated.
Economist Marko Djogo points out that the value of goods purchased and the number of VAT refund requests are still at a low level, considering how open BiH is, and how big the difference is in the VAT rate compared to, for example, Croatia.
“Most of the returns go to the north of BiH, where Croatian residents cross the border and buy here to get part of the money back. This procedure is not complicated at all, I can say that from personal experience. Whenever I find myself in, for example, Croatia and spend a little more money, I always ask for a VAT refund. It’s not a lot of money, but it still comes in handy,” said Djogo.
The president of the Consumer Protection Association Toper from Doboj, Snezana Seslija, pointed out that the prices in domestic stores are generally lower compared to the region, which is why more and more foreigners, especially citizens of neighboring countries, decide to shop in BiH.
“It is known that border municipalities profit from neighbors who often shop in our markets. These are also indicators that these consumer goods are perhaps a shade cheaper in our country than in neighboring countries, although lately, statistics show that the prices of certain products in BiH are up to half a euro higher compared to, say, Slovenia,” said Seslija and added that it is good for local shops that there are customers from the region.
However, Seslija believes that BiH does not have any excessive benefits from these customers, because, as she says, the margins are not so large that they can cover the costs, and BiH is left without its income due to the return of VAT.
The Right
In the ITA BiH, they point out that natural persons who do not have a place of residence in BiH have the right to a VAT refund on goods they buy in our country and take them out of the customs territory of BiH. The right to a VAT refund does not apply to exported mineral oils, alcohol, and tobacco products, eKapija reports.
