On 30 September 2026, the Indirect Taxation Authority of Bosnia and Herzegovina (UIO) announced plans to intensify controls on taxpayers engaged in the import of oil and petroleum derivatives. The move aims to strengthen compliance with value-added tax (VAT) and excise duty obligations in a sector historically prone to tax evasion and fraud. The UIO, which administers indirect taxes at the state level, stated that the enhanced inspections will target both the accuracy of customs declarations and the proper calculation of tax liabilities on imported hydrocarbon products. This initiative aligns with the Authority’s broader strategy to close revenue leakages and ensure a level playing field for compliant businesses.
The Indirect Taxation Authority, established under the 2004 Law on Indirect Taxation, serves as the single state-level administration for VAT, excise duties, and customs revenues. In recent years, the oil and gas sector has been identified as a high-risk area for revenue loss, with estimates suggesting that non-compliance in petroleum imports costs the budget tens of millions of convertible marks annually. The UIO’s 2025 annual report highlighted a 12% increase in detected irregularities in the hydrocarbon segment, prompting the current escalation. The Authority’s latest action plan, approved by the UIO Governing Board, allocates additional resources for specialized training of auditors in petroleum product classification and valuation methodologies.
Key Takeaways
- Expanded Audit Scope for Oil Importers: The UIO will deploy specialized audit teams to examine the full supply chain of petroleum imports, from customs clearance to wholesale distribution. Particular attention will be paid to discrepancies between declared volumes, commercial invoices, and actual stock movements, with the Authority empowered to request real-time data from customs and tax administration systems.
- Focus on VAT and Excise Duty Compliance: The reinforced controls will verify that importers correctly apply the standard VAT rate and applicable excise duties on all petroleum products. The Authority highlighted common schemes such as under-invoicing, misclassification of products, and illicit blending that reduce the tax base. Non-compliant entities face substantial penalties, interest charges, and potential criminal referral.
- Digital Monitoring and Cross-Agency Cooperation: The UIO plans to leverage electronic fiscalization data and customs IT systems to automate risk profiling. Enhanced cooperation with the Customs Administration, the Financial Intelligence Unit, and entity-level tax authorities will enable joint audits and information sharing, reducing the opportunity for fraudulent operators to exploit administrative gaps.
For multinational energy companies and local distributors operating in Bosnia and Herzegovina, the announcement signals a heightened compliance environment. Tax advisors recommend that affected entities conduct immediate internal reviews of their import documentation, VAT recovery processes, and excise duty reporting. Companies should ensure that their enterprise resource planning (ERP) systems capture all data points required by the UIO’s digital audit framework, including batch-level tracking of petroleum products. Proactive engagement with the Authority through voluntary disclosures may mitigate penalty exposure where past irregularities are identified. The UIO has indicated that the intensified control regime will commence in the fourth quarter of 2026, with the first wave of targeted audits expected before year-end.
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