On 17 October 2026, the Tax Administration of the Federation of Bosnia and Herzegovina (FBiH) announced the imposition of fines totaling nearly 376,000 BAM following a series of targeted inspections across multiple cantons. The enforcement action stems from the administration’s intensified compliance campaign under the Law on Tax Administration (Official Gazette of FBiH No. 12/19), focusing on VAT evasion, undeclared income, and improper bookkeeping among small and medium enterprises. The fines reflect a broader regulatory push to close the tax gap, which the FBiH Ministry of Finance estimates at over 1.2 billion BAM annually. Affected taxpayers have 15 days to appeal under Article 68 of the Tax Administration Law, while the administration has signaled further audits in the construction and hospitality sectors through Q4 2026.
Key Takeaways
- Targeted Enforcement Wave: The 376,000 BAM in penalties resulted from coordinated audits covering 47 businesses, with the highest individual fine reaching 85,000 BAM for systematic VAT non-compliance.
- Appeal Window and Compliance Deadline: Taxpayers must file objections within 15 days of notification; failure to pay or appeal triggers forced collection procedures, including bank account freezes under Article 72.
- Sectoral Focus Shift: The administration disclosed that 60% of fines targeted the wholesale/retail sector, signaling a strategic pivot from previous construction-heavy audit cycles.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement