The Federation of Bosnia and Herzegovina has passed a law requiring all transactions to be reported electronically in real time. The measure, effective from 12 February 2026, applies to businesses, organisations, and government bodies, with phased compliance deadlines and strict penalties for non-compliance.
Bosnia and Herzegovina’s House of People (Upper House) adopted a law requiring all transactions to be reported electronically in real time, aiming to improve tax compliance and reduce the informal economy.
The law was published in Official Gazette No. 9/26 on 4 February 2026 and entered into force on 12 February 2026.
Under the new legislation, businesses and organisations must update their systems in phases.
Business-to-consumer (B2C) transactions must comply within two years, while business-to-business (B2B) and business-to-government (B2G) transactions must be harmonised within three years.
The Minister of Finance will issue detailed implementing rules and an execution plan within 180 days of the law’s entry into force. Full application of these rules will occur 18 months after they are adopted.
The law applies to all entities performing taxable transactions, including businesses and sole proprietors headquartered in the Federation, associations, foundations, political parties, foreign business units operating in the Federation, and administrative bodies.
Certain entities are exempt, such as public administration, religious organisations, healthcare services where no fee is charged, the Central Bank of BiH, and some financial institutions under specific governing laws. Lawyers are partially exempt for court representation but must fiscalise other legal and consulting services.
The law defines three main transaction types. B2C transactions require fiscal invoices, either paper or digital, to end consumers. B2B transactions mandate the issuance and exchange of e-invoices in the structured electronic format EN 16931 for non-cash or combined payments.
B2G transactions also require mandatory e-invoicing for dealings with public authorities and local government bodies. Fiscalisation occurs at the point of transaction execution or payment, whichever comes first.
A robust technological framework supports the system. The Central Platform for Fiscalisation (CPF), managed by the Tax Administration, records transactions, exchanges data, and generates automated ledgers. The Electronic System for Recording Transactions (ESET), a software or cloud-based application, allows obligors to generate and sign invoices. The Security Module (SM) within ESET ensures encryption, digital signing, and real-time communication with the Tax Administration. Each invoice must include a Security Number (SBR) generated by ESET and a Verification Number (VBR) provided by the Tax Administration as proof of successful fiscalisation.
The law provides guidance for connectivity and system failures. If internet access is interrupted, obligors may issue invoices with an SBR but without a VBR, submitting the records to the Tax Administration within 48 hours. If ESET fails, businesses may temporarily rent an ESET or use approved paper fiscal invoices for up to 30 days, provided they restore a functional system within two days. Entities operating in areas without internet access must use ESET offline and submit monthly reports, supported by a certificate from the relevant communications authority.
Penalties for non-compliance are clearly defined. Businesses can face fines ranging from 8,000 KM to 30,000 KM for serious violations, while customers may be fined between 100 KM and 500 KM if they fail to take and keep invoices. Using unapproved ESET systems or failing to issue invoices can result in business bans lasting 90 to 120 days. Supervision will be carried out by the Tax Administration and the Federal Administration for Inspection Affairs.
The new law establishes a secure, real-time system for monitoring economic activity across the Federation, modernising the tax framework and aligning it with European standards.
