Customs duties, excise duties and international relations of Bosnia
Are you looking for valid reasons why you should open a company in Bosnia? In this article, many positive aspects of customs duties and Bosnia’s international relations with other countries will be presented.
Customs and excise duties:
The customs duty on imported goods is mandatory when goods cross the customs line. The duties in Bosnia and Herzegovina range from 0% to 15%. Since 2015, however, it is possible to import duty-free products from Switzerland, Liechtenstein, Norway, and Iceland. This is thanks to the EFTA (European Free Trade Association).
In Bosnia and Herzegovina, petroleum products, tobacco products, alcohol, alcoholic beverages, and coffee are subject to excise duty. Taxes apply to legal persons or entrepreneurs importing or exporting products of excise duty in the territory of Bosnia and Herzegovina:
- Petroleum products: from 0.3 bam to 0.4 bam per liter;
- Tobacco products: 42% on the retail price and an additional 0.75 bam per pack of 20 cigarettes;
- Non-alcoholic beverages: 0.1 bam per liter
- Alcohol and alcoholic beverages: from 8 bam to 15 bam per liter of absolute alcohol
- Beer and wine: from 0.2 bam to 0.25 bam per liter.
- Coffee (unroasted, roasted, ground coffee and coffee extracts): from 1.5 bam to 3.5 bam per kilogram.
International relations
Italy was among the first members of the International Community to establish diplomatic relations with Bosnia and Herzegovina by opening the Italian embassy in Sarajevo back in 1996. Italy is the second most important trading partner of Bosnia and Herzegovina, as well as the first financial investor. An agreement against double taxation is in force between Bosnia and Herzegovina and Italy.
However, Bosnia and Herzegovina has agreements against double taxation also with other countries like Algeria, Albania, Austria, Azerbaijan, Belgium, China, Cyprus, Croatia, Denmark, Egypt, Arab Emirates, Finland, France, Germany, Jordan, Iran, Poland, Serbia, Slovenia, Sweden, Turkey, etc.
Moreover, it is among the signatory states of the CEFTA, the Central European Free Trade Agreement stipulated between Albania, Serbia, Moldova, Montenegro, Macedonia, and Kosovo. Another free trade agreement was signed with Turkey. Bosnia and Herzegovina also has a system of generalized preferences with the USA, New Zealand, Switzerland, Norway, Japan, Russia, Kazakhstan, and Belarus, and has participated in the Partnership for Peace (PfP) program since 2006.
By starting a business in Bosnia and Herzegovina numerous opportunities will arise and you will benefit from countless economic and fiscal advantages. To find out more, write to info@taxofia.com