Foreign Shopping in Bosnia and Herzegovina Drops as New VAT Refund Rules Take Effect

Foreign visitors bought goods worth 40.5 million convertible marks (BAM) in Bosnia and Herzegovina during the first half of 2026, a decline from 47.2 million BAM in the same period of 2025. The number of VAT‑refund applications fell sharply to 95,597, down from 150,647 a year earlier. Authorities attribute the drop to a rule change effective 4 August 2025 that raised the minimum purchase amount for a refund from 100 KM to 200 KM.

Shoppers mainly came from neighboring Serbia, Croatia and Montenegro, purchasing everyday items such as food, household goods and textiles. The 2019 record year saw 135.9 million KM of foreign purchases and nearly 20 million KM refunded. Local officials say lower prices continue to attract regional buyers, but the stricter refund threshold is curbing demand.