Bosnia and Herzegovina Introduces VAT Refund for First‑Home Buyers

The Administrative Board of the Directorate for Indirect Taxation in Bosnia and Herzegovina adopted an amendment to the VAT Implementation Regulations, opening a VAT‑refund scheme for eligible adult residents who purchase their first newly‑built residential unit or a unit in a collective construction project. Refunds up to 24,557 KM are available for floor space up to 40 m², with an additional 15 m² per household member if the right is extended to them.

To qualify, the buyer must not have owned any property in Bosnia and Herzegovina for the previous ten years, the seller must have correctly accounted for and paid VAT, and the full purchase price (including VAT) must be paid. One buyer in a joint purchase can claim the refund, while other co‑buyers may be treated as household members. Applicants must submit a specific form together with identity, citizenship, residency, birth (and, if applicable, marriage) certificates, a notarised sales contract, the seller’s VAT invoice, proof of payment, and tax‑authority certificates. The benefit cannot be used by anyone who has previously received it, and the property may not be resold within five years; otherwise the refund must be repaid with interest. Applications must be filed by 30 June and will be decided within six months.