The draft law will now proceed through the parliamentary process.
The Government of the Federation of Bosnia and Herzegovina, acting on a proposal from the Federal Ministry of Finance, adopted the draft law on the Fiscalisation of Transactions in the Federation of BiH on 18 November 2025.
The draft law will now proceed through the parliamentary process.
The law regulates the obligation to issue invoices, the electronic system for recording transactions, the oversight system in fiscalisation, penalties, and other matters essential to fiscalisation within the Federation. Its primary aim is to prevent tax evasion linked to the informal economy by using technological systems to collect and transmit transaction data in real time securely.
Fiscalisation in the Federation is not a new concept, having been regulated by the Law on Fiscal Systems adopted in 2009 and implemented from 2010/2011. However, rapid advances in information technology and digitalisation of business processes revealed shortcomings in the existing legal and technical framework.
Analysis of the current fiscal reporting system highlighted problems in applying the law and technological solutions. Drawing on experiences from other countries and public consultation feedback, the new draft proposes a combined fiscalisation model designed to balance benefits with associated costs.
The draft law aims to establish a comprehensive system for reporting business transactions to the Tax Administration, provide free applications for small taxpayers, reduce tax evasion through cross-checks, align with European directives, modernise the tax system, and improve tax collection efficiency while combating the grey economy.
Key objectives include the precise determination of VAT collected in the Federation and the accurate calculation of other tax obligations arising from transactions. The law introduces oversight mechanisms to strengthen fiscal stability, enhance tax collection efficiency, and reduce opportunities for tax evasion and informal economy activity.
The law relies on a combination of three elements: clear legislation, access to real-time information, and application of modern technological solutions. Every transaction must be documented via receipts or invoices and reported to the Tax Administration.
The Federation’s government describes the initiative as a strategic step toward modernising the fiscal system, strengthening fiscal stability, and supporting sustainable economic development. The draft law aligns with EU tax rules, reflecting the Federation’s and the EU’s fiscal policy priorities.
