Bosnia and Herzegovina is taking decisive steps to modernize its tax compliance framework with the formulation of a bill introducing mandatory electronic invoicing. This proposed legislation, expected to be presented to parliament in early 2025, aims to establish live reporting requirements to government tax authorities. While an official launch date is yet to be confirmed, the initiative reflects a significant move towards combating tax fraud, particularly in the rapidly growing e-commerce and digital platform sectors.
Addressing Tax Fraud Through e-Invoicing
The government’s primary objective with this proposed mandate is to address widespread invoice fraud in online and digital commerce. By implementing live reporting mechanisms and electronic invoicing, Bosnia and Herzegovina seeks to:
- Increase tax transparency.
- Ensure real-time oversight of transactions.
- Align its systems with international e-Invoicing standards.
Anticipated Structure and Scope
Currently, Bosnia and Herzegovina lacks a standardized e-Invoicing framework. However, it is likely that the new system will follow the EU e-Invoicing directive, ensuring alignment with regional and international practices.
Initial implementation is expected to focus on B2G (Business-to-Government) public procurement. However, the government has indicated plans to expand the mandate to include B2B (Business-to-Business) transactions early in the rollout. This phased approach mirrors strategies used in other EU nations, enabling smoother adoption across different sectors.
Potential Impact on Businesses
The introduction of mandatory e-Invoicing will require businesses in Bosnia and Herzegovina to adapt their financial processes to meet compliance standards. Key considerations for businesses include:
- Transitioning to Digital Systems: Companies will need to invest in e-Invoicing software that meets the new standards.
- Live Reporting Readiness: Ensuring that their invoicing systems can facilitate real-time reporting to tax authorities.
- Alignment with EU Standards: Familiarizing themselves with EU e-Invoicing directives to ensure compliance.
Early adoption of digital solutions will help businesses stay ahead of regulatory changes and avoid potential disruptions.
While further details about Bosnia and Herzegovina’s proposed e-Invoicing bill are awaited, it is clear that the government is committed to fostering greater tax compliance and transparency. By aligning its e-Invoicing framework with EU standards and expanding its scope to include B2B transactions, the country is paving the way for a more efficient and fraud-resistant tax ecosystem.
Stay informed and prepared for the changes ahead!
