Bosnia and Herzegovina introduced rules governing refunds of overpaid public revenues and the calculation of default interest, with the new framework applying from 3 September 2026.
Bosnia and Herzegovina has introduced rules governing the refund of overpaid public revenues and the calculation of default interest by the Tax Administration of the Federation of Bosnia and Herzegovina (FBiH).
The Federal Ministry of Finance adopted the Regulation on the Procedure for Refund of Overpaid Public Revenues and Default Interest Calculation in Refund Procedures. The regulation was published in Official Gazette No. 68/26 on 2 September 2026.
Refund procedure
A refund procedure may be initiated by a taxpayer through a refund request or ex officio by the Tax Administration. Overpayments may be established from official tax records, taxpayer requests, enforceable decisions or amended tax returns.
Before issuing a refund decision, the Tax Administration must verify and offset the overpayment against any due and unpaid tax liabilities relating to the same public revenue beneficiary.
The head of the relevant tax branch office must issue a decision within 20 days of receiving a complete application or the required evidence.
Default interest
Refunds must be executed within 30 days of receiving a proper refund request. If the deadline is exceeded, the taxpayer is entitled to default interest, which the Tax Administration must calculate ex officio without a separate request.
Default interest is calculated at 0.04% per day on the refund principal, from the expiry of the 30-day deadline until the payment date. For refunds made in instalments, interest is calculated separately for each partial payment.
Appeals and oversight
Appeals against refund or default interest decisions may be filed within eight days of receipt and do not suspend execution.
Cases remanded following appeals or administrative litigation must be handled as a priority to limit further default interest. Officials may face corrective measures and disciplinary or material liability where unlawful or negligent action results in default interest or financial losses.
The Central Office of the FBiH Tax Administration will maintain records of default interest payments to monitor the efficiency of the refund process.
The regulation entered into force on 3 September 2026.
