Bosnia and Herzegovina: Rulebook on indirect tax control amended

Pursuant to Article 14 of the Law on Indirect Taxation System in Bosnia and Herzegovina (BiH) (“Official Gazette”, No. 44/03, 52/04, 34/07, 4/08, 49/09 and 32/13), the Governing Board of the Indirect Taxation Authority (ITA) adopted amendments to the Rulebook on the Limited Control of Indirect Taxes, at the 12th session held on September 2, 2016.

This Regulation entered into force on September 21, 2016, eight days upon its publication in the “Official Gazette” of BiH No. 68/16.

The main changes relate to the modification of tax control procedures, a new organizational structure and competences of the Tax Division of the ITA. In addition, the Rulebook provides for detailed clarification of limited tax control procedures.

The Rulebook sets forth the procedure laid down in Articles 88 to 91 of the Law on Indirect Taxation Procedure, the process of indirect taxes audit prescribed by Articles 92 to 102 of the Law on Indirect Taxation Procedure, and the subsequent customs control of indirect taxes prescribed by Articles 12 and 75 of the Law on Customs Policy.

The procedure includes checking of the facts, actions, evidence, activities, business and other circumstances determining the liability for indirect taxes.

The limited tax control procedure includes:

  • review and verification of data submitted by the taxpayer;
  • review and verification of data in the possession of the ITA;
  • access to the register and other documents prescribed by legal regulations for the area of indirect taxes;
  • request from third parties to provide data that they are obliged to provide or to confirm existing data.

The procedure on limited tax control starts with an order for the limited tax control, issued by the head of the group responsible for the control, on the basis of request by taxpayers to modify the application of self-assessment or in other cases when the need arises.

The tax audit includes the control of the regularity and timeliness of calculating the indirect taxes in the applications of self-assessment, an overview of the whole business of the taxpayer, a check on the punctuality, accuracy and reliability of accounting and other records in order to determine the correct tax liability of indirect taxes and to take measures in accordance with the law.

The audit may include control of one or more types of indirect taxes, as well as continuous control of certain business activities of the taxpayer.

The audited person is the person registered as a payer of indirect taxes. Additionally, the audited entity may be also a person who is not entered in the Register of indirect taxes if:

  • the person meets the statutory requirements and there are indications that such person meets the requirements for registration of indirect taxpayers;
  • there is a need to verify the information, facts or evidence that may be associated with the procedure of indirect taxation; or
  • it is especially prescribed by laws and regulations.

Dajana Topic,
Eurofast Global, Bosnia and Herzegovina
Tel.: +387 51 961 610