Bosnian businesses struggle against unregulated e-commerce platforms

Domestic businesses in Bosnia and Herzegovina are facing significant competitive disadvantages compared to international e-commerce platforms like Temu and Shein. While local companies must navigate over 2,350 regulatory requirements, including VAT, social contributions, and fiscal invoicing, international platforms currently operate with minimal fiscal oversight in the country.

Last year, approximately 2.1 million small packages valued at up to 300 KM entered Bosnia and Herzegovina. Under current regulations, these shipments do not undergo standard customs procedures or monitoring by the Indirect Taxation Administration, allowing them to enter the market without the same tax obligations faced by local retailers.

In contrast, the European Union has implemented a three-euro tax on small packages to curb the influx of Asian goods, and neighboring Serbia has introduced a 20 percent VAT and 10 percent customs duty on commercial shipments from China exceeding 50 euros. In Bosnia and Herzegovina, a draft law on e-commerce has reportedly been awaiting approval in the Federation of Bosnia and Herzegovina government for months, leaving consumers with limited protection and local industries struggling to compete.