All About E-Invoicing in Bosnia and Herzegovina

Bosnia’s electronic invoicing is still underdeveloped, with each region, Serbia, Bosnia, and Kosovo, having different fiscal rules. Through its Central Platform for Fiscalisation (CPF) and Electronic Fiscal Systems (EFS), Bosnia and Herzegovina is joining European countries that have embraced digital invoicing to combat tax evasion and improve business efficiency.

With the Draft Law on Fiscalization of Financial Transactions published and a public hearing underway through March 1, 2025, businesses face an imminent regulatory shift. While official implementation dates remain unannounced, the move from paper-based invoicing to structured digital formats represents more than just a technical upgrade, it's a fundamental change in how companies keep records, prove compliance, and operate day-to-day.

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The draft law on fiscalization in Bosnia and Herzegovina was published on November 12, 2024, introducing mandatory e-invoicing for B2G, B2B, and B2C transactions to combat tax evasion through real-time reporting. Following the House of Representatives' approval on December 17, 2024, a public hearing was held from January 1 to March 1, 2025, to gather feedback and ensure the law is practical and enforceable. 

What Is E-Invoicing and Why Bosnia and Herzegovina Is Adopting It?

Bosnia and Herzegovina is adopting e-invoicing with platforms like the Central Platform for Fiscalisation and Electronic Fiscal Systems to combat VAT fraud and tax evasion via real-time transaction monitoring. With e-invoicing not yet widespread, there’s a big opportunity for AI-powered PDF and digital invoice processing tools.

E-invoicing has many long term  benefits, such as reducing manual errors, speeding up payments, ensuring legal authenticity with digital signatures, and improving tax reporting accuracy, similar to Italy's SdI platform.

Real-time checks help catch VAT mistakes early, giving tax authorities instant fraud visibility and speeding refunds. The initiative promotes smoother cash flow, cleaner accounting, and market transparency, while aligning Bosnia with EU standards to support cross-border trade and EU integration. 

The Evolution of E-Invoicing in Bosnia and Herzegovina

Bosnia and Herzegovina's e-invoicing journey has been marked by gradual development toward mandatory implementation:

• Pre-2024: Bosnia and Herzegovina lagged behind European neighbors like Serbia, Croatia, and Montenegro, with no formal e-invoicing mandate. Paper-based invoices remained the norm, typically sent by fax or email, despite formal requirements under the Bosnian VAT Act.
• October 24, 2023: The Official Gazette reported the VAT threshold increase from 50,000 to 100,000 BAM, reflecting the government's recognition of changing economic conditions.
• November 12, 2024: The Draft Law on Fiscalization of Financial Transactions in the Federation of BiH was published, defining e-invoices as bills issued and received in structured formats complying with EU standards and enabling automatic electronic processing.
• December 17, 2024: The House of Representatives of Parliament accepted the Draft Law on Fiscalization of Transactions, moving the legislation forward.
• January 1 - March 1, 2025: Public hearing period initiated by the Federal Ministry of Finance to gather feedback and refine the law into a practical, enforceable proposal.
• Future Implementation: While no official start date has been announced, the government has made clear that real-time e-invoicing and reporting will be required for B2B, B2G, and B2C transactions. Implementation timelines and required bylaws are yet to be published.

There remains a significant preparatory period ahead, but the consultative approach adopted by Bosnian regulators aims to build confidence across the business landscape and ensure smooth adoption.

About CPF and EFS – The National E-Invoicing Systems

Similarly to other countries such as Italy, and Poland, Bosnia and Herzegovina is creating national electronic invoicing systems to ensure comprehensive tax compliance across all transaction types.

Central Platform for Fiscalisation (CPF)

The CPF is Bosnia and Herzegovina’s system for mandatory e-invoicing in B2B and B2G transactions. It validates and archives invoices in real time, assigns unique verification numbers, and supports structured formats like XML and UBL. The platform ensures authenticity through digital signatures and enables efficient tax reporting and invoice verification.

Electronic Fiscal Systems (EFS)

EFS is required for B2C transactions and includes approved software and certified fiscal devices such as cash registers and mobile points of sale. It issues invoices with QR codes or verification numbers, reporting sales to tax authorities instantly. These systems help ensure compliance and prevent fraud across consumer transactions.

B2G Electronic Invoicing in Bosnia and Herzegovina

The public sector in Bosnia and Herzegovina will mandate standardized electronic invoicing procedures through the Central Platform for Fiscalisation (CPF). All government offices will be required to process electronic invoices. 

Invoices issued to government entities will need to be digitally signed to guarantee authenticity and must follow structured formats like UBL and CII that comply with European standards. The system will perform automatic validation, rejecting invoices that do not meet legal or technical criteria, thereby safeguarding proper payment processing.

B2B Electronic Invoicing in Bosnia and Herzegovina

In Bosnia and Herzegovina, all domestic B2B invoices must be issued and submitted through the Central Platform for Fiscalisation (CPF) using structured electronic formats like UBL, XML, JSON, or Peppol BIS, without needing recipient acceptance. 

Invoices undergo real-time compliance checks, receive a unique verification number and timestamp, and are archived for eleven years. Companies must integrate their ERP/accounting systems with the CPF for automated invoicing. 

Significant penalties, similar to those in countries like France and  Hungary, will apply for non-compliance such as missing data, invalid files, or failure to archive.

B2C E-Invoicing and Fiscalization in Bosnia and Herzegovina

B2C e-invoicing will be mandatory in Bosnia and Herzegovina under the Draft Law, and fiscalization is required for these transactions. B2C sales must be issued through approved Electronic Fiscal Systems (EFS) at the point of sale, using ESET software and certified fiscal devices such as cash registers, laptops, or mobile phones, and each invoice will have a unique verification number or QR code so that customers and the tax authority can validate it and reduce fraud.

This setup ensures immediate reporting and reduces opportunities for fraud, following successful models implemented in countries like Slovenia, and Montenegro.

Handling Foreign Electronic Invoices and Cross-Border Compliance

Foreign companies with Bosnian VAT must issue B2B/B2G invoices via the CPF platform and B2C invoices through EFS, following Bosnia's e-invoicing rules. Non-registered foreign firms may have their Bosnian customers generate "self-invoices." 

Cross-border invoices must comply with both Bosnian and originating country regulations. Bosnia’s system supports EU integration through standard formats (UBL, CII, Factur-X), secure channels (electronic signatures, EDI/API), and PEPPOL interoperability. Proper authentication and matching directory data enable seamless invoice exchange across borders. Late or incomplete invoices face rejection and penalties.

E-Reporting and VAT Compliance in Bosnia and Herzegovina

Bosnia and Herzegovina uses electronic VAT reporting but not the SAF‑T standard used in some EU countries. Instead of submitting a single standard audit file, taxpayers report their VAT through domestic electronic forms and periodic returns defined by local tax authorities.

Businesses must keep detailed electronic records of invoices, supplies, and purchases so that these can be reported accurately and provided to the tax administration on request. 

The focus is on regular electronic VAT returns and proper digital record‑keeping rather than a SAF‑T file or continuous real‑time reporting model.

Your Trusted Partner for E-Invoicing in Bosnia and Herzegovina

As Bosnia and Herzegovina moves toward mandatory e-invoicing with its Central Platform for Fiscalisation and approved Electronic Fiscal Systems, partnering with trusted providers like DDD Invoices is vital to navigating this new landscape smoothly.

Bosnia’s e-invoicing framework sets a modern standard for real-time tax compliance, reducing fraud and improving transparency. Working with us lets your business focus on growth while ensuring full compliance with all regulatory requirements, making the transition effortless and efficient.

FAQs

When does mandatory e-invoicing start in Bosnia and Herzegovina?

There is no official start date yet for mandatory e-invoicing in Bosnia and Herzegovina. The Draft Law has been accepted and is currently under public consultation through March 1, 2025. Implementation timelines and required bylaws will be published after the law is finalized.

How will CPF and EFS help businesses with VAT and invoicing?

The CPF and EFS will make invoicing easier by checking invoices in real-time, giving each invoice a unique verification number, and storing them securely for 11 years. This helps prevent fraud, reduces errors, speeds up VAT processing, and improves cash flow management.

What formats will Bosnia and Herzegovina accept for e-invoices?

Bosnia and Herzegovina will accept structured, machine-readable formats including XML, UBL, Peppol BIS, EDI, JSON, and CSV (if properly mapped). Hybrid PDFs with embedded structured data may also be accepted. Each invoice must be digitally signed and include a unique verification number or QR code.

Do foreign companies need to comply with Bosnia's e-invoicing rules?

Yes, foreign companies with Bosnian VAT registration must comply with e-invoicing requirements through the CPF for B2B/B2G transactions and EFS for B2C transactions. Those without Bosnian VAT numbers must follow local regulations, potentially enabling self-invoicing by Bosnian customers.