The results of the project funded by the EU to improve capacities of the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina were presented today in Banja Luka. This project represents continuation of the EU assistance to the BiH ITA in further alignment with EU Acquis and effective implementation of legislation and practices in the field of indirect taxation in BiH. The value of the project was €1 million and is implemented by the Agency for European Integration and Economic Development (AEI) of the Austrian Federal Ministry of Finance.
The project provided assistance to BiH authorities by producing implementing regulations on the Law on Value Added Tax (VAT) and Book of Rules on VAT, Excise Law and Book of Rules on Excise Law, implementing regulation to BiH Customs Policy Law (CPL), various instructions and methodologies in the areas of prohibitions and restrictions including intellectual property rights (IPR), internal audit, risk analysis and post clearance audit. A book with practical examples in the field of VAT was elaborated which makes the interpretation of the law for interested parties much easier. Practical instructions and guidelines for customs officers, tax auditors and business entities will facilitate the application of customs and excise legislation.
Through workshops about strategic planning and business standards, as well as communication and cooperation, the project enabled a better understanding of the EU methodologies and better alignment with international standards.
Ambassador Lars-Gunnar Wigemark, Head of the EU Delegation and EU Special Representative, emphasized that this process must be transparent and that citizens should have access to information on how and why the taxes are collected. “This project does not ensure only the alignment of BiH legislation with the Acquis but it allows for better legislation and policies that will bring tangible improvements in the lives of citizens,” said Wigemark,
Director of the Indirect Taxation Authority Dr. Miro Džakula stressed the importance of the ITA for the fiscal stability at all levels of the government in BiH and added: “I sincerely wish to thank the European Union for all the assistance that, to date, from the investments in border crossings until this project, invested over 50 million euro in this Indirect Taxation Authority“.
During the conference, the basis for the implementation and the importance of an EU common transit system ‘New Computerised Transit System’ (NCTS), which is used by all EU member states, the EFTA countries, and some candidate countries, were also presented. This fully electronic transit system should simplify all transit procedures and enable BiH to accede to the European Convention on a common transit procedure. During the project, much has been done to achieve the harmonization of legislative legislation in the field of indirect taxes with the EU legislation.
The EU continues its support to alignment of BiH with the EU standards and practice, thus, a new project worth €1.7 million was recently signed to assist BiH in setting up the NTCS.