Bosnia and Herzegovina adopts VAT refund rule for first‑time home buyers

The Council for Indirect Taxation of Bosnia and Herzegovina approved a new regulation on the refund of value‑added tax (VAT) for the purchase of a first residential property. Finance Minister Srđan Amić emphasized that the rule, which took effect on 12 April 2025, will allow eligible individuals to receive a refund of up to 25,000 KM, paid directly to the buyer’s account.

The regulation applies to all citizens of the Federation of Bosnia and Herzegovina and Republika Srpska. Applicants must submit 13 required documents, and the administration expects the processing time to be no more than five days. Amić noted that the measure had been delayed since November 2023 due to political disagreements, but was finally adopted without further postponement. The rule aims to simplify the home‑buying process and reduce the financial burden on first‑time buyers across the country.