HOW TO CLAIM VAT REFUND AFTER PURCHASING YOUR FIRST APARTMENT

Buyers of their first apartment in Bosnia and Herzegovina will now be able to claim a refund of value-added tax (VAT) for up to 40 square meters of living space. If they decide to use this right for members of their household as well, the maximum area can be increased by an additional 15 square meters per household member.

PHOTO: Pixa bay

This is stipulated in the Rulebook on VAT Refund for the First Property, adopted today by the Governing Board of the Indirect Taxation Authority (ITA).

According to the rulebook, this right is granted to an adult citizen of BiH with permanent residence in the country, who purchases their first newly built individual housing unit, or an economically divisible unit within a newly built collective residential building, provided that the transaction is subject to VAT under the law.

If the size of the apartment exceeds the limit prescribed by the rulebook, the buyer will still be entitled to a partial VAT refund, proportionate to the eligible area.

To qualify for a VAT refund, the buyer must meet several conditions, including:

not having owned, co-owned, or jointly owned an apartment in BiH in the past ten years,

ensuring that the seller has properly reported and paid VAT,

paying the full purchase price including VAT to the seller’s account,

and proving that no household members owned an apartment during the same ten-year period, if the buyer chooses to extend the right to them.

If the apartment is jointly purchased by multiple individuals, only one of them may claim the VAT refund, while the others may qualify as household members, provided they meet the criteria.

Required Documentation

The application must be submitted to the ITA together with documents such as:

birth and marriage certificates,

proof of citizenship and residence,

notarized purchase agreement,

seller’s invoice showing VAT,

proof of full payment of the purchase price including VAT,

official certificates confirming that the buyer and household members did not own real estate in the past ten years,

statement of household members,

proof that the apartment has been officially registered,

and a bank account confirmation for the VAT refund.