Bosnia and Herzegovina to Implement Mandatory E-Invoicing and Real-Time Reporting

Bosnia and Herzegovina has introduced a new bill aimed at strengthening the fight against tax fraud and improving transparency in business operations. This legislative initiative seeks to modernize the tax system through the mandatory implementation of electronic invoicing and real-time reporting for all business transactions, covering business-to-business (B2B), business-to-government (B2G), and business-to-consumer (B2C) operations.

The bill establishes a regulatory framework that lays the foundation for the digitization of the invoicing process, which will facilitate tax control and reduce tax evasion. However, the implementation timelines and secondary regulations accompanying this new law still need to be defined. It is expected that in the upcoming stages, specific details regarding the transition and the technical requirements companies will need to meet to adapt to this new system will be established.

As part of the measures to ensure compliance with this new regulation, the bill also includes a penalty regime for those who fail to issue electronic invoices in accordance with the established provisions. These penalties may vary depending on the severity of the infringement and may range from fines to potential trade restrictions.
According to the bill, an electronic invoice will be defined as a digital document issued and received in a structured format, allowing for its automatic processing without manual intervention. To ensure interoperability and compliance with international standards, these invoices must adhere to the current European regulations on the matter.

Additionally, all electronic invoices must include a digital signature, ensuring their authenticity and integrity. The bill also stipulates that invoices must be archived for a minimum period of 11 years, ensuring their availability for audits and tax controls. Each invoice and receipt will include a unique verification number or a QR code, allowing taxpayers to verify their authenticity through a centralized platform.

Centralized Platforms

To ensure the system’s operability, the bill establishes the use of technological platforms that will allow for the secure and efficient issuance, receipt, and archiving of electronic invoices. Depending on the type of transaction, different systems will be implemented:

• B2B and B2G Transactions: Companies will be required to use the Central Platform for Fiscalisation (CPF), managed by the tax authorities. This platform will facilitate the issuance of electronic invoices, real-time reporting, data exchange, and will allow customers to review and pay invoices.
• B2C Transactions: Approved Electronic Fiscal Systems (EFS) will be used, which include tools such as Electronic Transaction Recording Tools (ESET) and fiscal devices for the issuance and reporting of invoices.

The implementation of this new system represents a significant shift in the country’s tax oversight and management. The mandatory use of electronic invoicing is expected to help reduce tax evasion, increase efficiency in tax collection, and simplify administrative processes for both businesses and tax authorities.