In recent years, citizens of neighboring countries in B&H have bought consumer goods worth millions, mainly in supermarkets and shopping malls along the border.

Everything was bought, from food products, to construction materials and furniture. The reason is lower prices, but also a VAT refund, which means big savings for customers.

Lower prices

However, the corona significantly affected cross-border shopping due to border closures. How much the closed borders were a blow to the economy is best shown by the figures.

- The total number of requests for VAT refunds in 11 months of 2020 was 218,395. The total value of goods purchased in B&H and exported outside the customs territory of B&H amounted to 63,961,034 KM, while VAT was 9,293,483 KM. The citizens of Croatia and Serbia asked for the most refunds - Ratko Kovačević, spokesman of the Indirect Taxation Authority (ITA) of B&H, explained for "Avaz".

This year, this situation is not surprising because the citizens of Croatia and Serbia, given the closed borders, were practically the only ones who could come to buy. He added that, compared to the previous year in which there was no emergency situation caused by the pandemic, it can be seen that the total number of requests for VAT refunds to foreign citizens was significantly higher, in total in 11 months of 2019 there were 438,718 requests.

- The total value of goods that were then purchased in B&H and taken out of the customs territory of B&H amounted to 135,894,609 KM, while the required VAT refund was 19,745,370 KM - Kovačević pointed out.

Great losses

The fact that 218,395 requests were submitted in 11 months of this year, almost the same as in the first half of last year, speaks what are the losses.

- In the first half of last year, 192,459 requests for VAT refund were submitted, and the value of the purchased goods amounted to 60.43 million KM. So, in the first six months of last year, foreigners bought goods worth 60.43 million KM, and in the first 11 months of this year, 63 million KM, even three millions less. The value of goods bought and taken out of B&H by foreign citizens in this period is 135.8 million KM - it was explained.

So, the losses are higher than 70 million KM.

No cigarettes, alcohol or fuel

To this amount should be added the money spent on cigarettes, alcohol and fuel, which are not subject to tax refund, as well as on goods purchased in the markets where they do not issue fiscal invoices. With these products, losses in trade increase by tens of millions of KM.