House of Peoples of the Parliamentary Assembly of BiH Unanimously Adopts Amendments to the VAT Law

The House of Peoples of the Parliamentary Assembly of Bosnia and Herzegovina has unanimously adopted the Law on Amendments to the Law on Value Added Tax (VAT) of Bosnia and Herzegovina. The proposal was submitted by the House of Representatives of the Parliamentary Assembly of BiH.

The proposed amendments relate to the VAT refund for the purchase of a first property by all adult individuals residing in the territory of Bosnia and Herzegovina.

The Constitutional and Legal Affairs Committee of the House of Peoples previously determined that the proposed law is in accordance with the Constitution of BiH and the legal system of BiH. Additionally, the Committee on Finance and Budget supported the principles of the proposed law.

The House of Representatives of the Parliamentary Assembly of BiH adopted the draft of this law in early December last year. According to the draft, an adult individual who is a citizen of BiH with permanent residence in BiH, and who is purchasing a residential property, is entitled to a VAT refund when buying their first home.

Refund Right, Not Exemption

It is important to clarify that this is not a law that exempts individuals from VAT, as is sometimes mistakenly stated. Rather, it is a law that allows for a VAT refund under specific conditions.

These conditions will be defined by the Indirect Taxation Authority following the adoption of the law. The intention of the proposer is to make the VAT refund applicable to the first 40 square meters of residential space, with an additional 15 square meters for each household member.

One of the most important features of this law is that it does not impose any age restrictions. All adult citizens of BiH are eligible to exercise this right, provided that the property they are purchasing is their first real estate.

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