The trend of Croats going to Bosnia and Herzegovina for shopping continues.
In the first eight months of 2017, foreign nationals submitted a total of 196,726 requests for the refund of the value-added tax in Bosnia and Herzegovina in the total amount of 8.3 million Bosnian marks (approximately 31.7 million kunas), reports tportal.hr on September 24, 2017.
The total value of goods purchased and exported by foreign citizens during the period amounted to 56.8 million marks (about 227.2 million kunas). The majority of foreigners coming to shop in Bosnia and Herzegovina were nationals of Croatia and Serbia, who mostly visited areas of Orašje, Velika Kladuša and Brčko.
According to the Bosnian media, Bosnia and Herzegovina is a highly popular destination for shopping, especially of consumer goods, which is taken advantage of by citizens of neighbouring countries who regularly cross the border and buy various products which are significantly more expensive in their own countries.
The right to a tax refund can be realised after purchasing goods in a total value of at least 100 marks, excluding alcohol, fuel and tobacco.
Given the number of requests for the refund of the VAT, which is in Bosnia calculated at a rate of 17 percent (it is 25 percent in Croatia), and given that a large number of citizens of neighboring countries spend less than 100 marks per visit, it is clear that the actual amount which the neighbors spend on consumer goods is considerably higher.
“When it comes to the border crossings with the greatest number of requests for tax refund for goods bought in Bosnia, at the first position is the Orašje border crossing with Croatia where, in the eight months of this year, a total of 31,582 claims of foreign nationals have been received, in the total amount of 1,176,062 marks. Other border crossings with a large number of requests are Hukić Brdo (Croatia), Brčko (Croatia), Izačić (Croatia), Uvac (Serbia) and Gradiška (Croatia),” announced the Indirect Taxation Authority of Bosnia and Herzegovina.
Croatian citizens, especially those living in Slavonia, come most often in Orašje, where there has been a marked increase in spending – on medicines, clothing, footwear, household items, and even on hairdressers.
Translated from tportal.hr.
