Bosnia tax authority approves millions in VAT refunds for first homes

The Indirect Taxation Administration (UIO) of Bosnia and Herzegovina processed 898 requests for value-added tax (VAT) refunds on first properties between September 16 and November 6, 2026.

The agency approved 848 of these requests, totaling 13,860,661.25 KM in refunds. These decisions were distributed across several regional centers, including Sarajevo, Tuzla, Banja Luka, and Mostar.

The agency has already transferred funds to the bank accounts of 733 citizens who received their decisions personally, while the remaining 115 payments are pending the completion of postal delivery. The UIO rejected 50 requests due to various administrative issues.

Reasons for these denials included properties being registered before the relevant law took effect on April 12, 2025, applicants owning multiple properties, properties still being under construction, or the failure of applicants to provide complete documentation after a request for more information. The agency also suspended one procedure because the applicant chose to withdraw the request. The UIO notes that the speed of payment depends on how citizens receive their decisions.

Residents who collect their documents in person receive payments the following day. Those receiving documents by mail must wait a few days longer until the agency receives the official proof of delivery. The UIO continues to process incoming requests and plans to provide weekly public updates on these decisions.