Foreign shoppers spent 40.5 million KM in Bosnia and Herzegovina during the first six months of 2026, according to data from the Indirect Taxation Authority (ITA).
Foreign citizens also requested 5.8 million KM in VAT refunds, showing that cross border shopping remains an important part of retail activity in the country.
Foreign Shoppers Mainly Come From Neighboring Countries
Most foreign buyers came from neighboring Serbia, Croatia and Montenegro.
They mainly purchased consumer goods, food, household products and textiles.
However, both the number of VAT refund requests and the total value of purchases declined compared with the same period in 2025.
Between January and June, foreign shoppers submitted 95,597 VAT refund requests, compared with 150,647 during the first half of last year.
The value of purchases also fell from 47.2 million KM to 40.5 million KM, while VAT refunds dropped from 6.8 million KM to 5.8 million KM.
New VAT Rules Affect Foreign Shopping
The ITA links part of the decline to new VAT refund rules introduced in August 2025.
The minimum purchase required to qualify for a refund was raised from 100 KM to 200 KM.
VAT refunds also remain unavailable for products such as fuel, alcohol and tobacco.
The ITA confirms that foreign travelers can claim VAT refunds for eligible goods taken out of Bosnia and Herzegovina, provided the required documentation and customs procedures are completed.
Bosnia Remains Attractive to Foreign Shoppers
Despite the decline, lower prices continue to make Bosnia and Herzegovina attractive to shoppers from neighboring countries.
The trend also highlights the importance of price differences between Bosnia and its regional markets, especially for consumers who can combine lower retail prices with a VAT refund.
Foreign Shopping Below Pre-Pandemic Levels
The latest figures are below the record levels seen before the pandemic.
In 2019, foreign shoppers spent 135.9 million KM in Bosnia and Herzegovina and received almost 20 million KM in VAT refunds.
Since the COVID 19 pandemic, annual foreign shopping has remained below 100 million KM.
VAT Rules Shape Cross-Border Shopping
Overall, the first-half figures show that foreign shopping remains significant for Bosnia and Herzegovina, but tighter VAT refund rules have reduced the number of eligible transactions.
The country continues to benefit from its competitive prices, while future changes to the refund system could influence how attractive it remains to shoppers from neighboring states.
