# Taxation and revenue trends in Bosnia and Herzegovina

> Live situation record from CLSTR: https://clstr.news/situations/taxation-and-revenue-trends-in-bosnia-and-herzegovina
> Updated: 2026-08-13T11:03:39.000Z. Sources: 13. Developments: 3.

The indirect tax administration of Bosnia and Herzegovina (UIOBiH) reported that indirect tax collections rose by 5.77% during the first seven months of 2026, totaling 7.244 billion KM. This growth contributed to a 7.27% year-on-year increase in distributed funds, with 5.980 billion KM allocated to the state, the Federation, Republika Srpska, and the Brčko District.

However, the new VAT refund scheme for first-time homebuyers, launched on 8 July 2026, continues to face implementation hurdles. While 245 applications have been filed for properties purchased from VAT-registered investors after 12 April 2025, no decisions or payments have been issued. UIOBiH director Zoran Tegeltija noted early implementation challenges, while association president Snežana Šešlija stated the slow rollout “erodes public trust.”

In the Federation of Bosnia and Herzegovina, the federal budget saw total inflows of nearly 11 billion marks during the first seven months of 2026. This includes approximately 5.17 billion marks from taxpayers—a 2% increase from the previous year—and 3.31 billion marks from the UIOBiH. 

Regarding property taxation, regulations in the Federation maintain that rental earnings are subject to a 10% income tax, regardless of whether transactions involve cash or bank transfers, or if formal written contracts exist. Taxpayers may deduct actual costs or use a standard 30% deduction to determine the tax base.

## Timeline

### 2026-08-13: Bosnia and Herzegovina federal budget sees 11 billion marks in inflows

The Federation of Bosnia and Herzegovina reported nearly 11 billion marks in budget inflows through taxes and debt in the first seven months of the year, despite incurring 2.2 billion marks in new debt.

3 sources. https://clstr.news/cluster/bosnia-and-herzegovina-federal-budget-sees-11-billion-marks-in-inflows

### 2026-08-10: Federation of Bosnia and Herzegovina rental income tax rules

Property owners in the Federation of Bosnia and Herzegovina must pay a 10% income tax on rental earnings, even if rent is collected in cash without a formal contract.

4 sources. https://clstr.news/cluster/federation-of-bosnia-and-herzegovina-rental-income-tax-rules

### 2026-08-02: Bosnia and Herzegovina tax authority reports surge in indirect tax revenue and pending VAT refunds

Bosnia's tax authority reports a 5.8% rise in indirect tax revenue and 1.264 bn KM VAT refunds, while 245 citizens await decisions on first‑home refund applications.

6 sources. https://clstr.news/cluster/bosnia-and-herzegovina-tax-authority-reports-surge-in-indirect-tax-revenue-and-pending-vat-refunds

---
Cite as: Taxation and revenue trends in Bosnia and Herzegovina. CLSTR, https://clstr.news/situations/taxation-and-revenue-trends-in-bosnia-and-herzegovina