Will the VAT on the purchase of the first property be abolished?

The Ministry of Finance and Treasury of Bosnia and Herzegovina initiated the procedure for amendments to the VAT Law, the aim of which is to exempt from VAT the purchase of the first real estate for all natural persons of legal age.

"This relief meant that the buyers were exempted, that is, they had the right to a refund of VAT related to 40 square meters of the residential building for the buyer and an additional 15 square meters for each of the household members who did not exercise the right to exemption, a refund for the purchase of the first apartment," Minister Srđan Amidžić told reporters in Banja Luka.

He said that this is significant support for all those who have not resolved their housing issue.

"On, say, 100 thousand KM, anyone who solves the housing issue in this way would have savings of about 14.5 thousand KM. You will agree that this is serious support", he emphasized.

Citizens who would like to take advantage of this benefit would have to prove through the public register that they did not own real estate from 2006 until the date of changes to the Act.

"This will require time and the support of all political parties in BiH, and this implies a reduction in public revenues," said the minister.

Amidžić said that this proposal was sent for consideration to the ministries of finance of Republika Srpska and FBiH, the Administration for Indirect Taxation (ITA) of BiH and the Department for Macroeconomic Analysis of the ITA of BiH.

Magazin, 20. Nov. 2023.