STRONGER CONTROLS INTRODUCED FOR SHORT-TERM APARTMENT RENTALS IN BOSNIA AND HERZEGOVINA

The Indirect Taxation Authority of Bosnia and Herzegovina has announced intensified inspections targeting individuals engaged in short-term apartment rentals, following findings that a significant number of renters are not registered for VAT despite exceeding the قانونی threshold.

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According to the authority, an internal analysis revealed that many property owners across Bosnia and Herzegovina are generating annual revenues above 100,000 KM, which legally requires VAT registration, yet remain outside the system.

“The analysis conducted by the Indirect Taxation Authority shows a considerable number of short-term rental providers who are not registered for VAT, even though available data indicates they exceed the legally prescribed threshold for mandatory registration,” the institution stated.

Authorities have called on all individuals involved in short-term property rentals who surpass the annual turnover of 100,000 KM to submit their VAT registration applications without delay.

Special attention has also been directed toward those using global booking platforms such as Booking.com, LockTrip, and Airbnb. The UIO emphasized that VAT must be calculated and paid on services received through these platforms, regardless of the total annual turnover.

The authority confirmed that enhanced inspections will be carried out twice במהלך the year, starting in June, and will cover all taxpayers across the country, regardless of their classification.

The move is part of broader efforts to improve tax compliance and ensure equal conditions for all participants in the growing short-term rental market.