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Registration of Foreign Entities Before ITA in Bosnia and Herzegovina Is Finally Functioning

Registration of Foreign Entities Before ITA in Bosnia and Herzegovina Is Finally Functioning

Bosnia and Herzegovina
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Indirect Taxation Authority of Bosnia and Herzegovina (“ITA”) conducts, among other, the registration of the taxpayers for Value Added Tax (“VAT”) purposes in Bosnia and Herzegovina. Pursuant to the applicable Value Added Tax Act of Bosnia and Herzegovina, there are two types of registration: (i) obligatory – in case the turnover in previous year exceeds or is likely to exceed the amount of BAM 50,000 and (ii) voluntary.

In the past, there were technical issues with voluntary registration of foreign legal entities for VAT purposes in Bosnia and Herzegovina which imposed problems for entities doing business there. However, it has been recently announced that all technical difficulties regarding the voluntary registration of foreign legal entities have been resolved, thus enabling straightforward and efficient registration procedure.

As a reminder, foreign legal entities are to be registered before ITA on a voluntary basis through their tax representative in Bosnia and Herzegovina, and for the purpose of conducting the registration procedure taxpayers are obliged to provide the following documentation:

  • Engagement letter for the representative services concluded with the tax representative;

  • Power of attorney with name data, ID number and residence, or a place of business of the tax representative with permanent residence in Bosnia and Herzegovina;

  • Contract or other document as a proof that taxable turnover is performed on the territory of Bosnia and Herzegovina;

  • Documents on the registration with the register of a domicile competent authority, officially translated to one of the official languages in Bosnia and Herzegovina (Bosnian/Serbian/Croatian);

  • Verified copy of passport for the authorised representative of the foreign legal entity;

  • Authorised signatories list verified by foreign commercial banks with opened special transaction account for the tax representative of the entity without residence in Bosnia and Herzegovina, through which transactions will be made related to business transactions;

  • Notice on main transaction account determined by the authorised payment organisation.

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Branimir Rajsic, Senior Consultant, Karanovic & Partners

Bosnia and Herzegovina Knowledge Partner

Maric & Co Law Firm stands on the shoulders of more than 70 years of experience and practice in the legal market of Bosnia and Herzegovina. Having in mind that it is difficult to find a small country with such a complicated political and legal system, we are fully aware that quality advice requires deep understanding of different areas of law. In a country where legislation is created on state, entity and cantonal levels, without proper harmonization, and where the same regulation can be applied differently by two different courts, only domestic lawyers who are well-versed in local regulations and court practices, and who are highly specialized in their practice area, may actually help their client.

With this understanding, today, the firm Maric and Co is the largest law office in the country dealing exclusively with business law. This means that we provide wide expertise in resolving all issues that domestic and international investors encounter when setting up and operating businesses in Bosnia and Herzegovina. The scope of the office allows each of our attorneys to highly specialize in their fields, whilst the size of our team ensures delivery of premium advice and seamless service. Our firm seeks long-term partnerships with clients with the aim of providing the best and most complete solution to the client's legal needs. We are proud to say that our clients do not leave us.

We apply the same principles to our international affairs, aware of the fact that no foreign lawyer can have the same understanding of legal regulations of a country as a domestic lawyer. Therefore, our philosophy is not to open branches in countries where our clients do business, but to closely connect with top tier lawyers in those countries. Our law firm is one of the founding members of SEE Legal – a group of ten leading national law firms from 12 South East European countries. This network enables us to provide the best advice and representation in these countries. Additionally, as a result of our strong relationship with the majority of global law firms, we are able to provide law services anywhere in the world.

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