VAT registration with the BiH Indirect Taxation Authority: ZR1, documents, Mostar

In brief

You must register for VAT when turnover in the previous year exceeds, or is likely to exceed, 100,000 KM. The ZR1 application goes to the Mostar Regional Centre of the Indirect Taxation Authority, which covers Trebinje, Bileća, Gacko, Ljubinje, Nevesinje and Berkovići. Administrative fees total 40 KM.

This article explains how to register for value added tax (VAT) with the Indirect Taxation Authority of BiH (Uprava za indirektno oporezivanje, UIO). It concerns farms, processors, rural hosts and caterers who are approaching the VAT threshold or want to register voluntarily.

In short

The threshold for mandatory registration is 100,000 KM of taxable turnover in the previous year (raised from 50,000 KM by the 2023 amendment).
The application is made on form ZR1 to the Mostar Regional Centre, Tax Department, Support Group.
Fees: 10 KM (application) + 10 KM (decision) + 20 KM (certificate) = 40 KM.
UIO issues the decision within 15 days of receiving the application, if the conditions are met.
Certification of photocopies must not be older than 60 days.

Who it applies to

Anyone whose taxable turnover in the previous year exceeded 100,000 KM or is likely to. Turnover of related firms under common control is added.
A farmer taxed on cadastral income is not a VAT payer if the total cadastral income of all household members is below 15,000 KM. Such a farmer may claim a flat-rate compensation for input tax, with prior UIO approval (Art. 45), requested on form ZPN from the UIO page. If the household's cadastral income exceeds 15,000 KM, UIO determines the VAT liability ex officio (Art. 57 para. 11).
A person below the threshold may ask to register voluntarily. The VAT obligation then lasts at least 60 months. For letting business premises (not housing) and farming land there is a separate voluntary registration for at least two calendar years.

What to do

Download form ZR1 and the filling instructions from the UIO page. Fill it in legibly in print letters and mark VAT as the basis. Field 9.1 is turnover for the previous calendar year, if the threshold was crossed in that year. If the threshold was not crossed in the previous year, enter in field 9.1 the turnover realised in the current year up to the day of filing. Field 9.2 is your estimate for the current year.
Prepare the documents (photocopy shown with the original, or certified copy):
- sole trader: decision approving the activity, ID card, tax registration certificate (PIB/JIB) from the Republika Srpska Tax Administration, bank signature card for every transaction account and a notice of the main account;
- legal person: court registration decision, ID cards of owners and responsible persons, bank signature card; the tax certificate only if the PIB/JIB is not stated in the court decision;
- natural person (a farmer who is not a sole trader): ID card, bank signature card and notice of the main account. Under Art. 12 of the Rulebook on registration, the activity decision and the PIB/JIB certificate are not required from a private individual registering voluntarily under Art. 44 para. 6 or Art. 61 of the Law, nor from a person disposing of goods under Art. 57 para. 12 of the Law.
For farming add the possession certificate (posjedovni list) and a certificate from the competent authority that you farm the holding (Rulebook on registration, Art. 12 para. 1 point c, items 4 and 5, for registration under Art. 61 para. 1 of the Law). For letting premises add the lease contract.
UIO may ask for more evidence, for example proof of premises for your seat, or, for field 9.2, proof that the estimated turnover will be realised (contracts, orders). If you have already crossed the threshold, add a statement of the day it happened.
Pay the three fees to JRT TREZOR BiH (revenue types 722801, 722802 and 722814, budget organisation 2403003 Mostar Regional Centre). Check the exact accounts and codes on the UIO page. Attach the original payment slips.
Submit the application with attachments to the Mostar Regional Centre. The decision and certificate are issued by the Central Office. Display the certificate visibly in your premises.

Deadlines and amounts

Apply at least eight days before you start taxable business.
If you cross the threshold while trading, apply by the 20th of the month following the month in which turnover exceeded the threshold or was likely to.
Decision within 15 days of receipt. If something is missing, UIO sets a deadline to complete it; otherwise it decides on the file as it stands.
Fees total 40 KM.

Where to go

Mostar Regional Centre, Rodoč bb, 88000 Mostar, tel. +387 36 350 177, e-mail info@uino.gov.ba. For registration questions: 036/356-797 and 036/356-795. Support Group (Tax Department): 036 351 292. According to UIO's territorial list, it covers Trebinje, Bileća, Gacko, Ljubinje, Nevesinje and Berkovići.
To file by post or electronically, ask the Mostar Regional Centre before sending. The UIO registration page is dated 2021 (amended 13.09.2021), so check the current document list on it before filing, because extra requirements differ by activity.

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