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Apply Now: Support Bosnia and Herzegovina’s EU-Aligned Tax and Customs Reforms

Deadline: 17-Apr-2026

The European Commission invites applications to support Bosnia and Herzegovina in modernising its indirect taxation and customs systems. With a budget of EUR 1,000,000, the initiative aims to align the country with EU standards, enhance tax collection and compliance, facilitate secure trade, and implement key customs reforms.

About the Initiative

The European Commission’s programme supports Bosnia and Herzegovina in strengthening indirect taxation and customs systems under the Stabilisation and Association Process. The initiative aligns with EU accession priorities, focusing on modernisation, compliance, and integration of EU standards. It provides technical assistance, capacity building, and institutional support to enhance revenue collection, trade facilitation, and societal protection.

Objectives and Priorities

  • Align Bosnia and Herzegovina’s tax and customs frameworks with EU legislation.

  • Strengthen indirect taxation and customs systems, including VAT, excise duties, and road taxes.

  • Ensure effective tax collection and compliance.

  • Protect society by preventing illegal trade, trafficking, and violations of public health, environment, and cultural heritage regulations.

  • Facilitate secure, simplified, and digital trade procedures.

  • Support green and digital transitions through e-authentication and streamlined business processes.

  • Improve coordination between state and regional government levels.

  • Implement the new Customs Policy Law, including NCTS, Authorised Economic Operators (AEO), and electronic customs declarations.

Context: EU Accession and Pre-Accession Assistance

Bosnia and Herzegovina applied for EU membership in February 2016 and obtained candidate country status in December 2022. Alignment with EU standards under the Stabilisation and Association Process is a key requirement for accession negotiations. Pre-accession assistance from the EU supports critical reforms, particularly in indirect taxation and customs administration, enabling the country to meet EU regulatory and operational standards.

Indirect Taxation Authority (ITA)

The Indirect Taxation Authority (ITA) is the state-level institution responsible for implementing and enforcing legislation on indirect taxation. Its key functions include:

  • Collecting and distributing indirect taxes and customs duties.

  • Administering VAT, excise duties, and road taxes.

  • Cooperating with institutions and inspection services to safeguard public health, environment, and cultural heritage.

  • Preventing trafficking in illegal and prohibited goods.

  • Balancing control measures with trade facilitation, including simplifications for reliable economic operators and secure supply chain management.

Organisational Structure

  • Headquarters: Banja Luka

  • Four regional centres: Sarajevo, Banja Luka, Mostar, Tuzla

  • 30 customs stations and 59 customs offices, including road border crossings, airports, railways, postal depots, and free zones

Key Customs Reforms

The initiative supports the implementation of major reforms under the new Customs Policy Law, including:

  • New Computerised Transit System (NCTS): Modernising customs transit procedures.

  • Authorised Economic Operators (AEO): Streamlining trade for compliant operators.

  • Electronic Customs Declarations: Digitalising import and export processes to improve efficiency and transparency.

Funding and Eligibility

  • Total Budget: EUR 1,000,000

  • Eligible Applicants: Public administrations and mandated bodies from EU Member States, applying through their respective National Contact Points and in accordance with the Twinning Manual.

  • Applicants must comply with eligibility requirements for the full duration of the grant.

Application Objectives

Successful applicants will provide technical assistance, capacity-building support, and implementation guidance to ensure Bosnia and Herzegovina meets EU standards. The programme requires a focus on practical adoption of reforms, digital solutions, and cooperation with ITA and other government bodies.

Why This Programme Matters

This initiative supports Bosnia and Herzegovina’s EU integration by modernising taxation and customs administration, improving revenue collection, protecting society, facilitating trade, and enabling digital and green transformation. Strengthened customs and taxation systems contribute to economic growth, regulatory alignment, and enhanced bilateral and international trade compliance.

FAQs

  1. Who can apply? Public administrations and mandated bodies from EU Member States through their National Contact Points.

  2. What is the total funding available? EUR 1,000,000.

  3. What is the main objective of the programme? To strengthen indirect taxation and customs systems and align them with EU standards.

  4. What key reforms are supported? NCTS, AEO scheme, and electronic customs declarations.

  5. Which institutions in Bosnia and Herzegovina benefit? The Indirect Taxation Authority (ITA) and other related state and regional bodies.

  6. Are private companies eligible? No, only public administrations and mandated EU bodies.

  7. What is the connection to EU accession? The programme supports pre-accession reforms essential for Bosnia and Herzegovina’s integration into the EU.

Conclusion

The European Commission’s initiative provides critical support for Bosnia and Herzegovina to modernise its indirect taxation and customs systems. Through technical assistance, capacity-building, and the implementation of key reforms, the programme enhances compliance, trade facilitation, and EU alignment, supporting the country’s ongoing EU accession process.

For more information, visit EC.