Bosnia and Herzegovina to implement e-invoicing and real-time reporting

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Bosnia and Herzegovina has proposed a new legislative measure to enhance the battle against tax fraud and promote transparency in business practices.

This initiative aims to modernize the tax framework by mandating electronic invoicing and real-time reporting for all commercial transactions, which include business-to-business (B2B), business-to-government (B2G), and business-to-consumer (B2C) interactions.

The proposed bill creates a regulatory structure that supports the digitization of the invoicing process, thereby improving tax oversight and minimizing tax evasion. However, the timelines for implementation and the supplementary regulations related to this legislation are yet to be established. It is anticipated that future phases will clarify the specifics regarding the transition process and the technical standards businesses must fulfill to comply with the new system.

To enforce adherence to this regulation, the bill incorporates a penalty framework for those who neglect to issue electronic invoices as required. The penalties will vary based on the severity of the violation, potentially ranging from fines to restrictions on trade activities.

Under the bill's provisions, an electronic invoice is defined as a digital document issued and received in a structured format, enabling automatic processing without manual handling. These invoices must comply with existing European regulations to ensure compatibility and adherence to international standards.

Furthermore, all electronic invoices are required to feature a digital signature to guarantee their authenticity and integrity. The legislation also mandates that invoices be stored for at least 11 years, ensuring they remain accessible for audits and tax inspections. Each invoice and receipt will be assigned a unique verification number or QR code, allowing taxpayers to confirm their authenticity through a centralized platform.

How Will E-Invoicing Be Executed?

1. B2B and B2G Transactions
In the context of business-to-business (B2B) and business-to-government (B2G) transactions, companies will be mandated to utilize the Central Platform for Fiscalisation (CPF). This centralized system, overseen by the Tax Authorities, will be tasked with:

  • Issuing e-invoices
  • Reporting data in real-time
  • Facilitating the exchange of data
  • Enabling the verification of invoices
  • Supporting the processing of payments

2. B2C Transactions
For business-to-consumer (B2C) transactions, organizations must implement approved Electronic Fiscal Systems (EFS). These systems encompass:

  • Electronic transaction recording tools (ESET)
  • Fiscal devices for the issuance and reporting of invoices

These tools will guarantee that fiscal receipt data is accurately recorded and reported to the Tax Authorities in real time, thereby enhancing transparency and ensuring compliance.

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KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and do not change existing customer SAP functionality or processes. It is fully configurable with a custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT also provides S/4 HANA transformation support.

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