Bosnian business regulatory and competitive challenges

Businesses in Bosnia and Herzegovina are facing increasing regulatory and competitive pressures. In the Federation of Bosnia and Herzegovina, new legislation under the Law on Payment Accounts has imposed stricter rules on companies with blocked payment accounts, prohibiting them from settling mutual obligations through accounting payments like compensation or assignment. Violators face fines of up to 10,000 KM.

Simultaneously, the Association of Employers of FBiH has highlighted the burden of approximately 2,350 various taxes and fees, which they claim create high administrative costs and legal unpredictability.

These domestic regulatory challenges are compounded by competition from international e-commerce platforms such as Temu and Shein. Local companies must adhere to strict VAT, social contribution, and fiscal invoicing requirements, whereas international shipments of small packages—totaling approximately 2.1 million last year—frequently bypass standard customs procedures and monitoring. While neighboring regions like the European Union and Serbia have introduced taxes or duties to curb the influx of such goods, a draft law on e-commerce in the Federation of Bosnia and Herzegovina has reportedly been awaiting government approval for months.