VAT on donated food in BiH has been abolished, making it possible to donate food worth 130 million KM

Delegates in the House of Peoples of the BiH Parliament unanimously adopted with 13 votes in favor the Draft Law on Amendments to the Law on Value Added Tax, which abolished VAT on donated food.

Of the 13 present delegates out of a total of 15 in the House of Peoples, all of them voted for the abolition of VAT, and this initiative was finally adopted.

Earlier, in a rare show of unanimity, the House of Representatives unanimously adopted the same changes, and by adopting these changes, it was possible that food worth about 130 million KM on an annual level would not be destroyed, but donated to those who cannot afford a single meal a day.

Also, the Management Board of the Indirect Borrowing Authority is obliged to pass a by-law on implementation within 60 days of the entry into force of this law.

As part of the “No one hungry, no one alone” project, Mozaik Foundation determined that the total value of donated food in 2020 amounted to 82.7 million KM, of which 12.01 million KM went to paid VAT.

Also, according to the analysis in 2020, the value of destroyed food in Bosnia and Herzegovina amounted to 126.6 million KM, and according to the UN estimate, 140,000 tons of food are destroyed annually.