Bosnia and Herzegovina is on the brink of a major fiscal transformation with the introduction of a draft law that mandates e-Invoicing and real-time reporting for transactions across multiple sectors. This initiative aims to improve tax compliance by implementing structured digital invoicing systems.
Scope of the Draft Law
The proposed legislation covers a wide range of transactions, including the sale of goods and services, property transfers, and other financial activities as determined by the Minister of Finance. However, exemptions are in place for certain sectors such as defence, health, and social protection.
What Is an E-Invoice?
According to the draft law, an e-invoice is defined as an invoice issued in a structured electronic format that enables automated electronic processing. This format must comply with the European Standard, ensuring seamless integration with digital tax reporting systems.
How Will E-Invoicing Be Implemented?
1. B2B and B2G Transactions
For business-to-business (B2B) and business-to-government (B2G) transactions, businesses will be required to use the Central Platform for Fiscalisation (CPF). This centralized system, managed by the Tax Authorities, will be responsible for:
- Issuing e-invoices
- Real-time data reporting
- Facilitating data exchange
- Enabling invoice verification
- Supporting payment processing
2. B2C Transactions
For business-to-consumer (B2C) transactions, companies will need to utilize approved Electronic Fiscal Systems (EFS). These systems include:
- Electronic transaction recording tools (ESET)
- Fiscal devices for invoice issuance and reporting
These tools will ensure that fiscal receipt data is recorded and reported to the Tax Authorities in real time, increasing transparency and compliance.
Penalties for Non-Compliance
The draft law also outlines specific penalties for businesses that fail to comply with the new e-invoicing and reporting regulations such as failing to issue invoices through the EFS.
Implementation Timeline
At present, the government has not announced an official timeline for the rollout of mandatory e-invoicing. Businesses should stay informed and prepare for upcoming regulations by assessing their existing invoicing systems and ensuring compatibility with the CPF and EFS requirements.
Bosnia and Herzegovina is taking an important step towards a fully digital tax ecosystem with its proposed law on e-invoicing and real-time reporting. The transition is expected to have a significant impact on improving tax compliance, reducing financial fraud, and streamlining business operations.
