Bookkeeping and Accounting Services in BiH: Most Common Fines for LLCs and How to Avoid Them

Late Submission of Tax Returns and Reports The Tax Administration and the Indirect Taxation Authority (ITA BiH) have strict deadlines for submitting documentation.

Most Common Violations:

• Delay in submitting monthly VAT returns (deadline is the 10th of the month for the previous month).

• Delay in submitting the Annual Tax Return and Corporate Income Tax return.

• Failure to submit or untimely submission of monthly specifications alongside payroll and contribution calculations.

Fines: For these violations, fines are imposed on both the legal entity (d.o.o.) and the responsible person in the company (director), and the amounts can significantly threaten ongoing liquidity.

Undeclared Work and Employment Contract Irregularities The Labor Inspectorate regularly conducts audits of employees' legal employment status.

Most Common Violations:

• Finding workers at the workplace without a signed employment contract and without registration with the Tax Administration (registration must be completed before the employee starts work).

• Failure to pay salaries in accordance with the legal minimum wage or failure to pay corresponding contributions.

• Lack of mandatory internal acts, such as the Rulebook on Work (for companies with more than 15 employees) or occupational safety agreements.

Fines: Fines for unregistered workers are among the highest in BiH, often ranging from BAM 2,000 to BAM 10,000 per worker for the legal entity, along with an additional fine for the director.

Fiscalization and Cash Violations Tax inspectors specifically audit the issuance of fiscal receipts and cash register maximum limits.

Most Common Violations:

• Failure to issue a fiscal receipt to a client or customer.

• Surplus or deficit of cash in the cash register relative to the fiscal device records.

• Use of non-fiscalized devices or failure to report a fiscal register breakdown to an authorized service provider within the legal deadline.

Fines: In addition to high monetary fines, the inspectorate has the right to order a temporary ban on business activities (sealing of the premises) for a period of 15 to 30 days.

Illegal Cash Withdrawals and "Loans" Money in a d.o.o. company's account is the property of the legal entity, not the personal money of the owner or director.

Most Common Violations:

• Withdrawing cash from the business account without adequate justification (invoices for goods/services, travel orders).

• Granting long-term loans to owners or third parties interest-free or without the intention of repayment, which the Tax Law treats as disguised income.

Fines: The Tax Administration reclassifies such transactions as personal income and calculates the corresponding income tax and contributions retroactively, along with default interest and misdemeanor fines.

Improper Keeping of Business Books and Archiving According to the Law on Accounting and Auditing in BiH, every d.o.o. must keep accounting records in accordance with International Financial Reporting Standards (IFRS).

Most Common Violations:

• Lack of authentic accounting documentation (incoming/outgoing invoices, contracts, bank statements).

• Inadequate storage and failure to retain documentation within legally prescribed time limits.

• Hiring uncertified individuals to handle bookkeeping and financial statement preparation.

How to Avoid Fines with the "All Under One Roof" Concept?

The best way to protect your d.o.o. from inspection fines is prevention and ongoing expert oversight.

Agencija Poslovnost d.o.o. Sarajevo offers you integrated protection:

• Bookkeeping and Accounting Services: Our certified accountants manage accurate balance sheets, track deadlines, and ensure flawless filings.

• Tax Consulting: We perform regular internal audits and optimize your tax obligations in compliance with the law.

• Legal Services and Lawyers: Preparation of employment contracts, internal acts, and legal representation during inspection controls.

• Software Houses and Fiscalization Providers: We ensure your ERP systems and fiscal registers operate smoothly without errors or downtime.

Don't risk your business operations and reputation! Choose a reliable partner who tracks all legal changes and protects you from unexpected costs and fines.

Contact us for a free initial consultation or visit us in Sarajevo. Leave the administration to the professionals!

🏢 Agencija Poslovnost d.o.o.

📧 info@poslovnost.ba

📞 033/246-421

📍 Kotromanića 48, Sarajevo