Federation of Bosnia and Herzegovina (FBiH): Proposed fiscalization & e-invoicing reform
Summary
The Federation of Bosnia and Herzegovina is circulating a new draft fiscalization law, which also establishes a framework for e-invoicing and transaction reporting. This draft, an improvement on the 2024 proposal, provides clearer guidance for businesses preparing for compliance.
Official public documentation detailing technical requirements for e-invoicing—such as formats (e.g., XML, UBL), data-exchange protocols, or interoperability standards—is currently unavailable in the recent news or the 2024 draft law.
Stakeholders should closely monitor announcements from the FBiH government and trusted advisory sources to prepare for upcoming updates.
The Federation of Bosnia and Herzegovina (FBiH) is moving toward a major reform of its fiscal and invoicing framework with the government recently adopting a draft Law on Fiscalization of Transactions. Although Bosnia and Herzegovina is composed of two entities and a special district, this draft law applies exclusively to the Federation, not the entire country. The proposal aims to modernise the fiscal system, introduce real-time or near-real-time transaction reporting, and reduce the grey economy, but many technical details and timelines are still under development. Based on the information available from official announcements and local media, below is an overview of the current status.
What is happening in Bosnia and Herzegovina
The Federation of Bosnia and Herzegovina has circulated a draft law on fiscalization that lays the foundation for electronic invoicing and transaction reporting. Compared to the 2024 proposal, the new draft brings important refinements and more practical direction for businesses preparing for compliance.
The law will require businesses to report transactions electronically to the tax authorities, aiming to increase transparency and reduce tax evasion. It focuses on all VAT-registered businesses within the Federation, including domestic private companies and professionals. The draft explicitly does not apply to the Republic of Srpska or the Brčko District.
Practical e-invoicing requirements for businesses
No official public documentation has been released specifying technical requirements for e-invoicing, including invoice formats, data-exchange protocols, file structures (e.g., XML or UBL), or interoperability standards. Recent news and the 2024 draft law do not provide these details.
Businesses should be aware that implementation will require adjustments to ERP or billing systems, legal IDs, VAT reporting, and potentially other transactional master data once the technical specifications are confirmed.
What is the Current Status of the New FBiH Draft Law?
The draft law is still in development and subject to public consultation. Key elements such as technical schemas, data validation rules, reporting timelines, and software accreditation procedures have not yet been officially released. Stakeholders should closely monitor announcements from the FBiH government and trusted advisory sources to prepare for upcoming updates.
Recommendations (practical next steps)
Confirm whether your company falls under the scope of the Federation’s draft law.
Begin reviewing internal systems and master data (buyer/seller IDs, VAT treatment, item/product codes) to ensure readiness.
Monitor official announcements for the release of technical specifications and reporting requirements.
Plan integration strategies with IT or ERP teams once the e-invoicing formats and protocols are confirmed.
Conclusion
The Federation of Bosnia and Herzegovina is taking significant steps toward a modern e-invoicing system with the adoption of the draft Law on Fiscalization of Transactions. While the law establishes the intention to mandate electronic reporting and transaction monitoring, many technical details remain undefined and subject to consultation. Businesses operating in the Federation should closely track updates to ensure compliance when the system is formally implemented.
