Capital
Sarajevo
Currency
Convertible mark
Languages
Bosnian, Croatian, Serbian
Population size
3.3M
Average Monthly Salary
€500
EU
Not a Member
Region
Southeast-Europe
Gift Giving Norms
Small, symbolic gestures preferred
Major Corporate Gift Days
New Year, Religious holidays
Customs Complexity
Medium
VAT - Standard Rate
17%
Duty Free Threshold
€45
Ave Duty Rate
5%
1. Employee Swag vs. Gifts
Bosnia and Herzegovina does not have an overarching single framework like the Netherlands’ WKR or France’s Urssaf. Instead, general tax principles apply: if swag is seen as employee compensation (benefit in kind), it may be taxed. If it’s deemed work-related or of minimal value, it may remain tax-exempt.
1.1 Swag for Employees
Swag Provided to Employees
Work-Related (Generally Non-Taxable)
Essential Tools & Uniforms
Items required for day-to-day duties (e.g., branded uniforms or protective gear) usually count as non-taxable, provided they are consistently used for work.
Branded Apparel & Accessories
If shirts, jackets, or accessories show a clear company logo and are intended for workplace identity or function, local tax authorities typically do not treat them as personal perks.
Potentially Taxable Benefits
High-Value or Personal Items
Costly or exclusively personal-use items (e.g., electronics not needed for work, luxury clothing) may be considered additional income, subject to wage tax or social contributions.
Frequent Gifts
Repeated distribution of “gifts” could be perceived as disguised salary. Consult local advisors if you plan multiple swag drop campaigns per year.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Companies can often deduct gift expenses if they serve a legitimate business purpose (e.g., client relationship building). However, high-value gifts may face extra scrutiny.
Compliance
Anti-corruption laws exist in BiH, though enforcement varies. Be mindful if dealing with public-sector entities; keep gift values moderate and well-documented.
1.3 Marketing Swag
Promotional Swag
Branded swag (pens, T-shirts, lanyards) distributed at events or trade fairs is typically recognized as a marketing expense. Retain invoices and distribution records to justify these costs in case of audits.
2. Shipping, Customs & Duties
Bosnia and Herzegovina is not part of the EU Customs Union. Though some free trade agreements (FTAs) exist (CEFTA, for example), you should confirm eligibility for preferential duty rates.
2.1 Shipping
Potential FTAs
BiH is part of the Central European Free Trade Agreement (CEFTA), which may provide reduced or zero customs duties for certain goods from EU countries—if you have valid origin documentation (EUR.1 certificate or invoice declaration).
VAT & Duties
If your items don’t meet FTA requirements, standard customs duties (~5–15%) plus 17% VAT on (value + duties + shipping) apply.
Documentation
A commercial invoice, correct HS codes, and possibly EUR.1 certificate help expedite customs if you seek preferential tariffs.
2.2 Importing
Standard Tariffs
Goods from non-EU sources follow BiH’s standard customs duty schedule. Confirm if any bilateral FTAs or special agreements could apply.
2.3 DDP vs. DAP
DDP (Delivered Duty Paid)
The sender pays import fees, simplifying the process for the recipient but increasing upfront cost.
DAP (Delivered At Place)
The recipient pays duties, taxes, and fees upon arrival—potential delays if they’re unprepared for extra charges.
2.4 With Monday Merch
From our Rotterdam warehouse, shipping to BiH involves customs clearance. We’ll help prepare the right documents—like the EUR.1 form if your goods qualify—thus potentially lowering or eliminating customs duties.
3. Cultural & Local Etiquette
3.1 Swag customs
Personal Connection
Bosnian culture values hospitality and personal relationships. A thoughtful or regionally relevant gift is often appreciated more than a high-ticket item.
Practical & Modest Gifts
Overly lavish or expensive gifts might be seen as extravagant in the local context. Simple, functional items—like quality notebooks, drinkware, or apparel—tend to go over well.
Major Gift Seasons
New Year’s (Jan 1) is a common time for corporate gift-giving. Religious/State Holidays vary between entities (e.g., Independence Day in the Federation; Dayton Peace Agreement day in Republika Srpska). Not all are used for corporate gifting, but local nuances matter.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
Eco-Friendly Emergence
While BiH is not known for stringent environmental rules compared to Western Europe, awareness of sustainable packaging and recycling is gradually increasing.
Labeling Requirements
Certain product categories (food, electronics, cosmetics) may require local-language labels (Bosnian, Serbian, or Croatian). Check if you need translations or local standards compliance.
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Remote Employees
Collecting personal addresses for direct shipping should follow basic data privacy practices. Though BiH doesn’t have GDPR-level regulations, obtaining clear consent is still prudent.
Onboarding & Retention
Welcome kits featuring branded clothing, office supplies, or coffee mugs typically do not cause tax issues if they’re modest and clearly associated with the job.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee vs. Personal Benefits
Clearly work-related items (uniforms, essential gear) are generally not taxed.
High-value or non-work swag may be treated as taxable compensation.
B2B Gifting & Marketing
Legitimate business gifts can be deductible; lavish or repeated gifts may attract scrutiny.
Promotional giveaways are considered marketing expenses if properly documented.
Shipping & Customs
Not in the EU: Customs duties ~5–15% + 17% VAT on total cost.
Monday Merch Warehouse: Potential FTA savings if goods qualify under CEFTA with correct EUR.1 certificate.
Cultural Context
Bosnians appreciate modest, practical gifts. Avoid overly flashy items. New Year’s is the main corporate gifting period, though local holidays vary by entity.
7. Frequently Asked Questions
7.1 Questions & Answers
Sources
Indirect Taxation Authority (ITA) of Bosnia and Herzegovina – Manages VAT, customs, and excise duties.
Ministry of Foreign Trade and Economic Relations – Oversees trade agreements, import regulations.
Chamber of Foreign Trade of BiH – Offers business advice and local compliance guidance.
Disclaimer
This guide is for informational purposes only and does not constitute legal or tax advice. Always consult local advisors or official sources to confirm the latest regulations.
