Bosnia and Herzegovina tax authority reports surge in indirect tax revenue and pending VAT refunds

The Uprava za indirektno oporezivanje Bosne i Hercegovine (UIOBiH) received 245 applications from citizens seeking a VAT refund on their first purchased home, but no decisions have been issued and no payments have been made. The refund scheme, which applies to newly built properties bought directly from VAT‑registered investors after 12 April 2025, began on 8 July 2026. UIOBiH director Zoran Tegeltija warned of early implementation challenges, while association president Snežana Šešlija said the slow rollout erodes public trust.

In the first seven months of 2026, indirect tax collections rose to 7.244 billion KM, a 5.77 % increase over the same period in 2025. The administration returned 1.264 billion KM in VAT refunds and allocated 5.980 billion KM of net revenue to the state, the Federation, Republika Srpska and the Brčko District, marking a 7.27 % rise in distributed funds year‑on‑year.