Mandatory E-Invoicing Set to Launch in Bosnia and Herzegovina
The draft law proposes e-invoicing to address tax evasion and promote fair competition.
A Draft Law on the Fiscalization of Financial Transactions in the Federation of Bosnia and Herzegovina (BIH) was unveiled on November 12, 2024. The legislation aims to reduce tax evasion by leveraging advanced technological systems that provide secure, real-time transaction data. Details regarding the implementation timeline and necessary bylaws are still pending.
Scope of the E-Invoicing Mandate
The Draft Law defines an e-invoice as a structured electronic document compliant with EU standards, enabling automated electronic processing.
It mandates e-invoicing for the B2G, B2B, and B2C sectors, along with real-time reporting of invoice data to the tax authorities. However, certain sectors, such as defense, health, and social protection, are exempt from the requirement.
The mandate applies to various transactions, including but not limited to the sale of goods and services and property transfers.
Introduction of a CTC Framework
Currently, Bosnia and Herzegovina lacks a formal e-invoicing framework. The Draft Law proposes the creation of a central fiscalization platform (CFP) supported by Electronic Fiscal Systems (EFS). These systems encompass electronic transaction recording tools (ESET) and/or fiscal hardware.
ESET software, which facilitates the issuance, reception, and reporting of invoice data to the tax administration, can take the form of a desktop-based fiscal system, integrated accounting software, or a cloud-based application, provided it meets the law’s requirements.
EFS also covers hardware solutions, such as cash registers or electronic devices like laptops and mobile phones, for issuing receipts.
Taxpayers will have the option to validate invoices or receipts via a verification number or a QR code on the fiscalization platform.
There’s more you should know about global e-invoicing changes – learn more about the new and upcoming regulations.
