Bosnia changes VAT penalties

The 2014 Bosnian Indirect Tax Procedures Law implemented a range of increased fines and interest charges for non-compliance from 1 January 2014.

The new flat charge for late payments of VAT is 5% of the taxable amount due.  This was 10%.  Late payments of VAT will also result in a daily penalty of 0.06% of the VAT.  This is a 0.02% increase from the previous 0.04% daily rate.

The current Bosnian VAT rate is 17%.  The compares to the EU average VAT rate of just over 21%.