Regulatory updates - Bosnia and Herzegovina

On November 18, 2025, the Government of the Federation of Bosnia and Herzegovina (BiH) adopted the Draft Law on Fiscalization of Transactions, as proposed by the Federal Ministry of Finance, during an extraordinary session. This draft underwent public consultation earlier this year.  

The draft legislation aims to modernize the country's fiscal system by establishing comprehensive real-time transaction reporting to the Tax Administration. It covers several key areas, including mandatory invoice issuance, electronic transaction recording systems, supervision mechanisms, and penalties for non-compliance. 

According to the Government, this initiative builds upon the 2009 Law on Fiscal Systems, which introduced fiscal cash registers at retail points of sale for payments made in cash or cashequivalent methods, such as checks or payment cards.  

The new legislation responds to technological advancements and increasing business digitization while pursuing several objectives: 

• Providing free applications for small taxpayers; 

• Reducing tax evasion through enhanced data cross-checking; 

• Aligning BiH's fiscal framework with EU directives; 

• Precisely determining VAT collection amounts within the country; and 

• Accurately establishing other tax obligations from reported transactions. 

The Government views this modernization effort as a strategic initiative to strengthen fiscal stability, create a more equitable tax system, and support sustainable economic growth by reducing the informal economy. 

The draft law now moves to Parliament for further legislative procedure, with additional details expected to be published soon. 

Following the House of Representatives of Parliament's acceptance of the Draft Law on Fiscalization of Transactions on December 17, 2024, the Federal Ministry of Finance initiated a public hearing. This hearing will take place from January 1 to March 1, 2025. Its goal is to develop an efficient, high-quality legal solution that is as practical and enforceable as possible.

Comments and feedback must be submitted using the form available for download alongside the Draft Law on the Federal Ministry’s website. Once completed, the form can be sent to the Federal Ministry by mail or email.

The next step will involve preparing a Proposal of the Law, which will be based on the Draft Law and the feedback received from the public.

On November 12, 2024, the Draft Law on Fiscalization of Financial Transactions in the Federation of BIH was published. The main purpose is to prevent tax evasion using technological systems providing secure real-time information for all transactions in the country. The required bylaws and implementation timelines are yet to be published.   

Expected scope of the mandate 

The Draft Law defines an e-invoice as a bill issued and received in a structured format, complying with the EU standard, and enabling automatic electronic processing.  

It outlines the requirements for mandatory e-invoicing in the B2G, B2B, and B2C sectors and real-time reporting invoice data to the tax administration. Some sectors are out of scope e.g. security and defense, health, and social protection activities.
 

Transactions in scope are but are not limited to, the sale of goods and services including the transfer of property.  

CTC-model to be defined 

There is no framework regulating e-invoicing in the country today. The Draft Law outlines a central fiscalization platform (CFP) and so-called Electronic Fiscal Systems (EFS). The EFS includes an electronic transaction recording system (ESET) and/or fiscal equipment. 

ESET software for invoice issuance, reception, and reporting invoice data to the tax administration may be a desktop version of the fiscal system, an integrated accounting system, or a cloud application fulfilling the requirements specified in the Draft Law. 
 

EFS for issuing and receiving receipts includes hardware e.g. cash register and/or electronic device, for example, a laptop or mobile phone used to issue receipts.   

Taxpayers should be able to validate the invoice/receipt on the platform either by a verification number or a QR code.