SHOPPING CENTERS IN BOSNIA AND HERZEGOVINA A HAVEN FOR REGIONAL SHOPAHOLICS

Shopaholics from neighboring countries are gradually returning to their old habits and are increasingly becoming customers in stores in Bosnia and Herzegovina, as confirmed by data showing that foreign nationals were granted VAT refunds totaling 3.9 million KM in the first four months of this year, approximately 600,000 marks more compared to the same period last year.

According to the data from the Indirect Taxation Authority of Bosnia and Herzegovina, foreign nationals who requested VAT refunds from January to the end of April this year bought goods worth 27.1 million KM in Bosnia and Herzegovina, while in the comparative period the previous year, the purchases by foreign buyers amounted to 23 million KM. In just four months this year, foreigners filed 90,816 refund requests, compared to 76,491 requests in the same period last year.

Until the outbreak of the coronavirus pandemic, traders in Bosnia and Herzegovina, especially in border areas, made significant profits thanks to customers from Serbia, Montenegro, and Croatia, as evidenced by statistical data from the Indirect Taxation Authority.

Bosnia and Herzegovina experienced a consistent increase in the number of VAT refund requests from foreign nationals from 2012 until the pandemic outbreak, with the total amount requested surpassing 120 million KM in the last decade alone. The record was set in 2019 when foreigners purchased goods worth 135.89 million KM and received VAT refunds of almost 20 million KM.

The positive trend was interrupted by the pandemic, with the amount of VAT refunds requested by foreign nationals falling below ten million KM in 2020 and 2021.

- In the past two years, there has been a recovery, although it will probably take more time to return to the level of foreign goods purchasing value as it was before the pandemic, which hindered travel and halted business activity in many countries, stated the Indirect Taxation Authority.

They added that citizens of Serbia, Croatia, and Montenegro are the biggest buyers in Bosnia and Herzegovina, mostly purchasing consumer goods, household items, and textile products, which they then take out of the country's customs territory, thus being eligible to request VAT refunds.

President of the Consumer Protection Association "Zvono" from Bijeljina, Jovan Vasilić, noted that citizens of Serbia, mainly from border areas, cross into Bosnia and Herzegovina mostly for fuel, as it is significantly cheaper.

- All physical persons who do not have residence in Bosnia and Herzegovina have the right to a VAT refund for goods purchased in Bosnia and Herzegovina and taken out of the country's customs territory in their luggage. The right to VAT refund does not apply to exported mineral oils, alcohol and alcoholic beverages, and tobacco products, stated the Indirect Taxation Authority of Bosnia and Herzegovina.