VAT and Tax-Free Shopping

VAT

In Bosnia and Herzegovina, the value-added tax (VAT) rate is a tax charged to consumers based on the purchase price of certain goods and services and amounts to 17%.

Shopping Without VAT

Foreign citizens can, after leaving customs from BiH, request a refund of any value-added tax (VAT).

A tax refund can only be requested if the purchased goods exceed the value of 100 BAM, with exceptions for oil, fuel, alcohol, and tobacco products.

To be eligible for a VAT refund, the following conditions must be met:

1. For VAT application, you must request the retailer to complete the VAT-SL-2 form for you at the time of purchase.
2. After leaving Bosnia and Herzegovina, you must submit receipts, purchased items, and completed original VAT-SL-2 forms to the customs office.
3. The customs office will then verify the VAT-SL-2 forms and receipts and determine if all conditions for a VAT refund are met.
4. The purchaser or the person/legal entity authorized to apply for a VAT refund must provide the seller with the certified original VAT-SL-2 form within three months of purchase.

VAT refunds can be processed in two ways: in cash or credited to a bank account.

If the payment is made in cash, the seller is required to immediately refund the VAT. If it is credited to an account, the transaction must be completed within 15 days.