Answers to your questions
Frequently asked questions about accounting in BiH
Clear answers to the most common questions about VAT, payroll, company formation and accounting services in Bosnia and Herzegovina. No jargon — just useful information.
VAT & Indirect Taxes
Who is subject to VAT in Bosnia and Herzegovina?
You become a VAT payer when your total turnover in the preceding 12 calendar months reaches or exceeds 50,000 BAM. Registration is done with the Indirect Taxation Authority (ITA). Voluntary registration before reaching the threshold is also possible.
When is the VAT return due and what are the deadlines?
The tax period is the calendar month. The VAT return must be submitted electronically to the ITA by the 10th of the month for the previous month.
As a new VAT payer, can I immediately deduct input VAT?
Yes — from the date of VAT registration you can deduct input VAT on invoices for purchases used for VAT-taxable supplies.
What are the KUF and KIF books and why are they important?
KUF (Book of incoming invoices) and KIF (Book of outgoing invoices) are mandatory VAT records. ENS d.o.o. maintains these records for you and ensures they comply with ITA regulations.
What if I have no turnover in a month — do I still need to submit a VAT return?
Yes — a VAT return must be submitted even in periods of zero turnover. Failure to file results in administrative penalties.
Payroll & Social Contributions
What are an employer's obligations when paying salaries in FBiH?
The employer deducts income tax (10%) and employee contributions (PIO/MIO 17%, health 12.5%, unemployment 1.5%) from the gross salary. Employer contributions are also paid on top. All obligations are reported via the JIOPPD form.
What is the minimum wage in FBiH in 2025?
The minimum gross wage in the Federation of BiH for 2025 is 1,000 BAM (net approx. 632 BAM). Always verify the current Government of FBiH decision.
How are travel expenses and meal allowances calculated?
Travel reimbursement is paid at actual costs or a fixed amount. Meal allowance up to the legally defined threshold is tax-exempt.
What is the JIOPPD form and why is it important?
JIOPPD is a monthly report submitted by the employer to the FBiH Tax Administration, showing all data on employees, salaries, contributions, and taxes.
Company Formation in FBiH
What is the fastest way to set up a company in Sarajevo?
The fastest route is registering a single-member LLC (j.d.o.o.) at the Municipal Court in Sarajevo. With the ENS team, the entire process can take 5–7 working days.
What is the difference between an LLC and a sole trader in BiH?
A sole trader is simpler and cheaper to set up, but the owner is personally liable for all debts. An LLC limits liability to the invested capital.
How much does it cost to set up an LLC in FBiH?
Total costs include court fees (approx. 200–350 BAM), notary fees (approx. 100–200 BAM), and administrative charges. With ENS services, total costs are typically between 600 and 900 BAM.
Can a foreign national set up a company in BiH?
Yes — foreign nationals can set up a company in BiH under the same conditions as domestic founders. ENS can help coordinate the process.
When do I need to register my company for VAT?
Mandatory VAT registration arises when annual turnover reaches 50,000 BAM. Voluntary registration is possible earlier.
Didn't find the answer?
Accounting regulations in BiH are complex. Our team is available for a free consultation — contact us and we will respond within 4 business hours.