POSLJEDICE IZMJENA PLAĆANJA PDV-a NA TROŠKOVE KARTIČNIH TRANSAKCIJA
CONSEQUENCES OF VAT PAYMENT CHANGES ON CARD TRANSACTION COSTS

Author(s): Jasna Zrilić
Subject(s): Economic policy, Financial Markets, Fiscal Politics / Budgeting, Accounting - Business Administration
Published by: Finrar d.o.o Banja Luka
Keywords: card transactions; global card houses; value added tax;
Summary/Abstract: In Bosnia and Herzegovina, there is an increase in payments via payment cards. In 2024, the volume of payment card transactions amounted to 18.43 billion KM. Over 99% of card traffic in Bosnia and Herzegovina is made up of MasterCard and Visa cards. In order to make a card transaction, the participation of the mentioned card companies is necessary. They issue invoices to banks for their services. From the beginning of the work of the Administration for Indirect Taxation of Bosnia and Herzegovina, and for the next 18 years, the position was that the costs of global card companies (MasterCard and Visa) constitute side traffic, that is, they represent an integral part of a financial transaction without which it is not possible to do the same, and that there is no obligation to pay value added tax on them. Only since the control that was carried out in 2022, this position has been changed, but without changing the legal regulations, the way of working, the nature of the services provided, that is, there has been no change in any facts that would justify the change of position. Bank controls that were carried out before 2022 treated these card house services as non-taxable. Also, in that earlier period, the Directorate for Indirect Taxation gave a written opinion confirming this. However, the opinion was changed without prior knowledge of the taxpayers, which is contrary to Article 49 of the Law on Indirect Taxation Procedure of BiH. The banking sector of BiH has retroactively paid value added tax and default interest in the amount measured in tens of millions of KM in 2022, based on the decision from the aforementioned control. The Association of Banks of Bosnia and Herzegovina, as a professional body of the banking sector of Bosnia and Herzegovina, actively participated in the communication between the banks and the Administration for Indirect Taxation of Bosnia and Herzegovina, however, no consensus was reached. The retroactive application of a different interpretation of the same legal regulations caused, in addition to financial, even more significant effects on Bosnia and Herzegovina, which are reflected in legal uncertainty, loss of reputation and the creation of a bad economic climate for attracting foreign investments. The purpose of this work is to avoid the practice of changing opinions and attitudes in future procedures of tax institutions, without prior notification of the taxpayer or changes in the legislation.

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