Expense management module › Global expense management › Bosnia and Herzegovina
Last updated : 11.05.2026
Expense rules in Bosnia and Herzegovina.
Bosnia and Herzegovina applies VAT (PDV) at 17%, one of the simplest rates (single rate). EU candidate since 2022.
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1Expense rules & reclaimable VAT
PDV 17% single rate. No reduced rate. BAM pegged to EUR (1.95583 = old DM).
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 17% | Deductible | Tax invoice + JIB |
| Lodging | 17% | Deductible | Company JIB required |
| Alcohol | 17% | Limited | Excluded from business meals |
| Fuel | 17% | Deductible | Detailed invoice |
| Transport | 17% | Deductible | Taxi/airfare |
| Client gifts | 17% | Non-deductible | Strict cap |
Receipt
Tax invoice
JIB number required
Meal cap
<= BAM 35/pers
Above: justify
SourcesBiH Indirect Tax Authority
2Mileage allowance
No official mileage scale. Actual reimbursement on receipts.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel + tolls | On receipt |
| Company car | – | Fuel card | – |
| Taxi | – | 100% on receipt | Receipt required |
Tracking
Logbook
Date, distance, purpose
SourcesBiH Indirect Tax Authority
3Per diem and travel allowances
Official tax per diem: BAM 25/day domestic tax-free. Above: company policy.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Sarajevo | BAM 15 | BAM 55 | BAM 100 |
| Banja Luka | BAM 12 | BAM 45 | BAM 80 |
| Mostar | BAM 12 | BAM 45 | BAM 80 |
| Other cities | BAM 10 | BAM 35 | BAM 65 |
Conversion
1 EUR = 1.956 BAM
Fixed peg
SourcesBiH Indirect Tax Authority
4Foreign VAT recovery
PDV recovery for resident companies via monthly return. Non-residents: reciprocity only.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident companies | PDV credit | Monthly (10th) | PDV return |
| Non-residents (reciprocal) | 13th directive | June 30 (year N+1) | Reciprocal countries |
| Other non-residents | None | – | Final cost |
Statute of limitations
5 years
Keep invoices
SourcesBiH Indirect Tax Authority
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