President Stevandic called for an increase in the base of the threshold for entry into the VAT system

19.05.2023 - 14:15

The President of the National Assembly of the Republic of Srpska Dr Nenad Stevandic send today a letter to the representatives of the institutions of the Republic of Srpska and BiH in which he asked for the emergent decision on the increase of the threshold for entry into the VAT system, to the amount equivalent to the surrounding, standing out that this would contribute to the better economic situation and employment.

President Stevandic send a letter to the following:

Government of the Republic of Srpska- Radovan Viskovic-president

Government of the Federation of Bosnia nad Herzegovina-Nermin Niksic-president

The Council of Ministers of Bosnia and Herzegovina-Borjana Kristo-chairman

The House of Representatives of the Parliament of the Federation of Bosnia and Herzegovina -Mirjana Marinkovic Lepic-chairman

House of Representatives of the Parliamentary Assembly of BiH-Denis Zvizdic-chairman

Marinko Cavara-deputy chairman

Nebojsa Radmanovic-deputy chairman

The Directorate for Indirect Taxation, director

We transmit the letter in its entirety:



I am convinced that you are acquainted with the problems which are independent enterprises confronted with. (Independent entrepreneur).

Namely, the threshold for the entrance into the VAT system of these entrepreneurs is 50 00 BAM. It has been overpassed long ago, but as it has been legally kept on that level, it has become an impediment to starting up new businesses, and start-ups, and also it has become the reason for and it also became the cause of the closing down of numerous small shops and moving into the gray zone of business, which leads to a decline in the activity of this sector, a decrease in employment and accelerates the departure of people abroad.

Respected, there are numerous examples of the departure of tailors, beauty salons, and many other craft services from registered auspices to apartments, garages, and premises like that, where they stop paying their obligations and create an ever-increasing gray area of business.

The cause for this is the base for entering into the VAT system, which is 50 000 BAM, because it is practically impossible for one, two, and especially more workers to be registered and pay obligations in the specified amount.

For example, in Serbia, this base is 75 000 euros, and it represents the guarantee for starting this kind of job, that is business.     

I am sure that you are aware that the initiative for change has come to the competent institutions several times (Parliamentary Assembly of Bosnia and Herzegovina, Council of Ministers...), and I invite you to do everything in your power, which is undeniably easy and achievable, so that all of us together solve this problem in favor of a large population, for whom this solution would enable legal business, stay in the country, but also pay all obligations.

Without doubting your lack of understanding and goodwill, I ask you for coordination as soon as possible with the aim of making an urgent decision on increasing the threshold for entry into the VAT system, to an amount equivalent to the surrounding, which would contribute to a better economic environment and employment.

I am convinced that this topic has no political and national differences, nor will it be contested by the institutions of the European Union in the sense of hindering the plan to join the European integrations, and that they would set a good example of the expediency of the local authorities and commitment to the benefit of their citizens.

With respect,