Farm household, sole trader or company: which form for agritourism in RS

A family that wants to host guests on a farm in East Herzegovina must choose the form in which it sells lodging, meals and activities. This text describes the position in Republika Srpska on 6 October 2026 and does not replace advice from the Tax Administration or an accountant.

In short

• Registration only in the Register of Agricultural Holdings (RPG) covers farming. A small farmer with income up to 50,000 KM pays 0, 200 or 400 KM a year, but only if registered exclusively in the RPG.
• For services to guests there are the sole trader (samostalni preduzetnik) and the d.o.o. company. A third route, a private person entered at APIF through a contract with a tourist organisation, is described from an APIF notice that predates the new Law on Tourism: confirm it with APIF or the municipal tourist organisation.
• A small entrepreneur pays 2% of revenue (up to 100,000 KM a year), with a minimum of 1,200 KM a year (600 KM if revenue does not exceed 50,000 KM). Other sole traders pay 10% of income, a d.o.o. pays 10% profit tax.
• VAT registration is mandatory once taxable turnover in the previous year exceeds 100,000 KM.
• The fiscal receipt exemption covers sales of your own farm produce, not lodging or catering.

Four forms

1. Holding in the RPG. Registered at APIF (Agencija za posredničke, informatičke i finansijske usluge, the registration agency). Production and sale of own produce is allowed.
2. Private person, not a sole trader. The Law on Tourism (Official Gazette of RS 49/26, Art. 15) allows tourist activity by such persons, who must publish prices and issue a receipt for every service. According to an APIF notice, the person signs a contract with a tourist organisation or travel agency and applies for entry within seven days: contract, application, 40 KM fee, ID card, bank account and proof of ownership of the property. APIF refers to older laws and the new law has applied since 10 June 2026, so check the conditions before applying. Confirm with the Tax Administration whether a fiscal device is required for this form.
3. Sole trader. The registration decision is issued by the municipal or city unit responsible for the economy.
4. D.o.o. Registered in the Register of Business Entities (Registar poslovnih subjekata); the application is filed at an APIF business unit (one-stop counter). The cash part of the share capital is at least 1 KM.

Tax

• Small entrepreneur: all conditions must be met throughout the tax year: entrepreneurial activity, at most three employees, total annual revenue from that activity not above 100,000 KM and no VAT registration, no joint activity with others and no outside investors. Income of household members who perform the same activity is added together when testing the 100,000 KM limit, which matters when the whole family serves guests. The status is requested by notice to the Tax Administration by 31 January, or within 30 days of starting for new businesses.
• Other sole traders pay 10% on income.
• A d.o.o. pays 10% profit tax.
• Small farmer: annual income up to 12,000 KM pays nothing, up to 25,000 KM pays 200 KM, up to 50,000 KM pays 400 KM; declaration by 28 February. This covers farm income, not services to guests.
• Since 2025, tax on income from independent activity applies even if the person is not registered. Ask the Tax Administration about contributions, especially if you are a pensioner or this is a secondary occupation.

Fiscal receipts and VAT

• The Law on Fiscalisation requires a person registered for trade in goods and services to record every sale on an electronic fiscal device. Exemptions are set by Government decree (Official Gazette of RS 10/24, amended up to 87/25). The list includes sales of own agricultural produce in the production premises of rural and family farms and at stalls. The decree names neither lodging nor tourist services, and the older exemption for rural households under the former Law on Fiscal Cash Registers was not carried into it. Small entrepreneur status is not an exemption. It is unclear whether processed products (cheese, rakija) are covered, so confirm that. Get confirmation for your case from the Tax Administration before the first guest.
• VAT: registration is mandatory above 100,000 KM of turnover in the previous year (turnover of connected persons counts) and voluntary below it, with a commitment of at least 60 months. A farmer is not a VAT payer if the cadastral income of all household members is under 15,000 KM, but that applies to farming; turnover from lodging and meals counts toward the 100,000 KM threshold.

Incentives

• Agricultural incentives are tied to the RPG and fund investment in agricultural production, not guest rooms or building reconstruction. For capital investments in 2026 (public call dated 20 April 2026, published 21 April 2026, application deadline 6 May 2026, Rulebook Official Gazette of RS 29/26) the base rate is 40% of eligible costs for commercial farms, entrepreneurs and legal entities and 20% for non-commercial farms. Higher rates (50% and 25%) apply to a holding at or above 600 m above sea level, a holder under 40 or a woman registered in the RPG by 31 December 2025, organic or conversion holdings and tractor attachments made in RS; anti-hail nets get 70% and 35%. Caps per basis are 100,000 KM (commercial farms), 50,000 KM (non-commercial) and 200,000 KM (entrepreneurs and legal entities). The call is closed; investment and payment request are due by 15 October 2026. A new rulebook and call are issued every year.
• Tourism: companies, entrepreneurs and private persons providing hospitality in a rural tourism facility, apartment, holiday house or room may receive earmarked funds (Law on Tourism, Art. 90) through public calls.

What next

1. Choose a form based on expected revenue and how many family members work with guests.
2. Register at the municipal economy department or at APIF.
3. Ask the Tax Administration about the fiscal device and your tax status.
4. Check with the municipality what hosts must do, for example guest registration, tourist tax and accommodation categorisation.

Where to go

• The economy department of your municipality or city: sole trader registration.
• APIF: RPG, register of entrepreneurs, Register of Business Entities (d.o.o.), entry of private persons.
• Tax Administration of Republika Srpska (Poreska uprava), Contact Centre +387 51 332 300.
• Indirect Taxation Authority of BiH (UIO): Trebinje, Bileća, Gacko, Ljubinje, Nevesinje and Berkovići belong to the Mostar Regional Centre.
• Agency for Agrarian Payments (Agencija za agrarna plaćanja), Trg Republike Srpske 1, Banja Luka, tel. 051/338-549.

Laws and sources

• Law on Tourism (Official Gazette of RS 49/26 of 2 June 2026)
• Law on Fiscalisation (Official Gazette of RS 15/22)
• Decree on activities without the duty to record sales (Official Gazette of RS 10/24) and amendment 68/25
• Law on Amendments and Supplements to the Income Tax Law (Official Gazette of RS 110/24) and Law on Supplements to the Income Tax Law (Official Gazette of RS 112/23), small farmer
• Amendment to the VAT Law (Official Gazette of BiH 80/23)
• APIF: register of private persons providing hospitality services
• Public call for capital investments 2026 (Agency for Agrarian Payments)