Further support to Indirect Taxation Authority of Bosnia and Herzegovina

Twinning action under IPA III to strengthen the institutional and operational capacities of the Indirect Taxation Authority of Bosnia and Herzegovina with a total EU budget of €1,000,000 and an 18 month implementation period. Eligible lead applicants are EU Member State public administrations or their mandated bodies to provide a Project Leader, Resident Twinning Adviser and experts for customs, VAT, excise, risk management and internal audit. The project, managed by the European Commission Delegation to Bosnia and Herzegovina, focuses on harmonising indirect taxation legislation with the EU acquis, preparing the customs laboratory for ISO 17025 accreditation, improving VAT refund procedures and strengthening risk management and internal audit functions and requires submission via the EU Funding and Tenders Portal by 17 April 2026 at 10:00 UTC.

What it funds

Short description

A twinning action under IPA III to strengthen the institutional capacity of the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina in customs, VAT and excise matters, risk management, internal audit and related IT/process alignment with the EU acquis.

Grant amount:Total EU budget €1,000,000.

Duration and timing:Project duration 18 months. Deadline for proposals 17 April 2026, 10:00 UTC.

Who can apply

Twinning lead applicants are EU Member State public administrations or mandated bodies (partner administrations). Proposals normally include a Member State lead, a Resident Twinning Adviser, component leaders and short-term experts; beneficiary is the Indirect Taxation Authority, BiH.

Key objectives and results

1. 1Harmonise indirect taxation legislation and procedures with the EU acquis (customs, VAT, excise).
2. 2Strengthen ITA operational capacity: customs procedures, tariff and valuation, transit (NCTS), authorised economic operator scheme and customs laboratory accreditation.
3. 3Build risk management and internal audit capacity, improve personal data protection and VAT refund procedures.

Apply and find full twinning fiche and submission details on the EU Funding & Tenders Portal Opportunity page. ¹

Footnotes

1. 1Twinning fiche and annexes available from the prospect document repository: ANNEX C1 Twinning Fiche (see full details and mandatory results) Twinning fiche document.

Opportunity Overview and Key Facts

This is an EU Twinning action grant under the Instrument for Pre-accession Assistance III to further harmonise Bosnia and Herzegovina’s indirect taxation framework with the EU acquis and strengthen the institutional capacity of the Indirect Taxation Authority of Bosnia and Herzegovina. The intervention focuses on customs and taxation, VAT refunds, excise controls, risk management, internal audit, personal data protection, and preparation of the customs laboratory for accreditation to BAS EN ISO 17025. The action aims to support alignment with the Union Customs Code, the Common Transit Convention and related EU IT systems, and to deploy good practices including AEO, NCTS Phase 6, and enhanced risk-based controls.

Policy Rationale and Objectives

Overall objective:To further harmonise indirect taxation legislation with the EU acquis and apply best EU practice in customs, VAT, and excise to fulfil Stabilisation and Association Agreement obligations.

Specific objective:To strengthen ITA institutional capacities and improve overall performance by applying new laws, procedures and best practices in customs, VAT refund operations and excise controls, enhancing risk management across strategic, tactical and operational levels, aligning internal audit practices with international standards, and strengthening personal data protection.

Strategic alignment:The action is grounded in the Stabilisation and Association Agreement provisions on customs and taxation cooperation, the 2025 European Commission Country Report for Bosnia and Herzegovina findings, the Economic Reform Programme, the country-wide Public Financial Management Strategy 2021-2025, and the Growth Plan Reform Agenda for the Western Balkans.

Scope, Components and Expected Results

• Component 1: Customs and Taxation
• Result 1.1: Capacity building in customs procedures, tariff, valuation, simplified procedures, transit and customs enforcement of intellectual property rights, including AEO and interoperability with EU customs IT systems such as NCTS.
• Result 1.2: Customs laboratory documentation evaluated and revised; preparation for accreditation to BAS EN ISO 17025 completed.
• Result 1.3: Capacity building to improve VAT refund procedures and practice, including adoption of EU best practices and associated by-laws and instructions as needed.
• Component 2: Risk Management and Internal Audit
• Result 2.1: Strengthened capacity for managing customs and tax compliance risks at strategic, tactical and operational levels, including advanced profiling and addressing risks from the digital economy.
• Result 2.2: Internal audit capacity strengthened to align with Global Standards on Internal Auditing and enhanced financial management and control knowledge.
• Result 2.3: Personal data protection improved and aligned with the new Law on data protection, with reinforced procedures and departmental practices.

Reforms and systems supported include alignment with the Union Customs Code and its delegated and implementing acts, preparation for accession to the Common Transit Convention, New Computerised Transit System Phase 6 (opt-in), AEO program consolidation and CEFTA mutual recognition obligations, improvement of VAT refund governance, and groundwork for connectivity with EU customs IT systems.

Applicable EU Acquis and Standards

The Twinning builds on a comprehensive acquis set including:Regulation (EU) No 952/2013 laying down the Union Customs Code and its delegated and implementing regulations; EU decisions on a paperless environment for customs; the Convention on a Common Transit Procedure; VAT Directive 2006/112/EC and VAT administrative cooperation; general excise framework Directive 2008/118/EC and EMCS-related decisions; excise directives on energy, alcohol and tobacco; and regulations on administrative cooperation and data exchange for excise. The laboratory component targets BAS EN ISO 17025 accreditation readiness.

Implementation and Governance

Implementing agency:Delegation of the European Union to Bosnia and Herzegovina, responsible for tendering, contracting, and accounting. Project governance includes a Project Steering Committee to monitor progress, validate interim quarterly reports and the final report, and adjust the work plan as needed. The official project language is English.

• Key roles and profiles: Project Leader from an EU Member State indirect taxation administration with at least 3 years managerial experience; Resident Twinning Adviser deployed full-time in the beneficiary administration with managerial experience in indirect taxation; two Component Leaders for customs and taxation, and for risk management and internal audit; short-term experts who are officials or assimilated agents from MS public administrations or mandated bodies.
• Duration: 18 months.
• Facilities: ITA BiH will provide office and meeting space, telephony, PCs with internet, and access to standard office equipment for the RTA, assistants and experts.

Documents Available

• ANNEX C1: Twinning Fiche detailing objectives, components, results, indicators, risks and assumptions. Download link provided on the call page.
• Annex C9 Standard Twinning template for proposal preparation. Both published on 19 February 2026 on the EU Funding and Tenders Portal.

Categorisation and Structured Information

Eligible Applicant Types:EU Member State public administrations responsible for indirect taxation and customs, and their mandated bodies as defined in the Twinning Manual. Typical applicants include ministries of finance, customs and tax authorities, revenue administrations, and designated mandated bodies such as public research or training institutes empowered by a Member State administration to implement Twinning. Private companies, NGOs, and entities from non-EU countries are not eligible to act as Twinning Member State partners.

Funding Type:Grant under the EU Twinning instrument financed by IPA III. It funds expertise, deployment of RTA and short-term experts, training and capacity-building activities, and associated eligible costs under direct management rules.

Consortium Requirement:Twinning allows proposals from a single EU Member State administration or a consortium of EU Member State administrations and mandated bodies. One Member State acts as Lead Member State; participation of a junior partner Member State is permissible. The beneficiary administration is the Indirect Taxation Authority of Bosnia and Herzegovina.

Beneficiary Scope (Geographic Eligibility):Eligible applicants are limited to EU Member States and their mandated bodies. The project is implemented in Bosnia and Herzegovina for the benefit of the Indirect Taxation Authority under IPA III.

Target Sector:Public administration reform in customs and taxation. Thematic coverage includes customs procedures and tariff, customs valuation, simplified procedures, transit and Common Transit Convention, New Computerised Transit System Phase 6, intellectual property rights enforcement by customs, VAT management with focus on refunds, excise regimes and EMCS principles, risk management and compliance, internal audit in line with international standards, personal data protection compliance, laboratory methods and accreditation BAS EN ISO 17025, digital signatures and e-government processes in tax administration, AEO programme consolidation and mutual recognition in CEFTA.

Mentioned Countries:Bosnia and Herzegovina.

Project Stage:Institutional strengthening and implementation. Activities include development and revision of by-laws and instructions, training and capacity building, operational deployment of risk management methods, preparation for laboratory accreditation, and practical alignment with EU procedures and IT systems. This is not a research and development action but an implementation and operational improvement project.

Funding Amount:Total EU contribution available is €1,000,000 for the Twinning action.

Application Type:Open call to EU Member State administrations through the EU Funding and Tenders Portal. Submission follows the Standard Twinning templates and rules provided in Annex C9 and the Twinning Manual.

Nature of Support:Financial support to the selected EU Member State partner administration in the form of a Twinning grant to deploy experts and implement the work plan. The beneficiary administration receives technical assistance and capacity building as non-monetary benefits.

Application Stages:Single-stage proposal submission and evaluation via the Funding and Tenders Portal, followed by contracting under direct management. Project governance then proceeds with inception, quarterly steering committee meetings, interim reporting, and final reporting.

Success Rates:No success rate information is provided in the call materials. Twinning calls typically fund one proposal for a defined fiche; competition is among eligible EU Member State administrations submitting compliant proposals.

Co-funding Requirement:Not specified in the fiche. Twinning actions under IPA are generally financed at 100 percent EU contribution for eligible costs of the Member State partner. The beneficiary administration provides in-kind support such as offices and logistics.

Detailed Technical Priorities and Activities

• Customs and UCC alignment: Update by-laws and instructions to align with Regulation (EU) No 952/2013 and its delegated and implementing acts, including transitional provisions, with emphasis on simplified procedures, tariff, valuation, transit and IPR enforcement.
• Common Transit Convention and NCTS Phase 6: Finalise legal and technical readiness for accession to the CTC and operate NCTS P6, including drafting instructions for enquiry and recovery procedures and ensuring connectivity to EU customs IT systems.
• AEO programme: Consolidate criteria, validation practices and mutual recognition steps in line with EU and CEFTA Additional Protocol 5, and further reduce physical checks through risk-based simplifications.
• VAT refunds: Improve processes, controls and by-laws for VAT refunds, incorporating EU best practice and addressing new provisions such as first property VAT refund amendments.
• Excise controls and EMCS principles: Strengthen controls and procedures in line with Directive 2008/118/EC and related implementing acts, and enhance cooperation and administrative assistance.
• Risk management: Deploy strategic, tactical and operational compliance risk frameworks, advanced profiling including digital economy risks, and reinforce OLAF cooperation and anti-fraud tools.
• Internal audit: Align methodologies with Global Standards on Internal Auditing, strengthen financial management and control, and upgrade staff competencies.
• Personal data protection: Harmonise departmental work with the new Law on data protection and EU-compliant safeguards for processing, storage and exchange of customs and tax data.
• Customs laboratory: Evaluate documentation, revise procedures and prepare for BAS EN ISO 17025 accreditation to support tariff classification, valuation and enforcement tasks.
• Digital transformation: Expand use of qualified digital signatures for tax administration interactions, promote paperless workflows, and ensure secure, efficient e-communication with taxpayers and traders.

Roles and Minimum Expertise Requirements

• Project Leader: University degree or 8 years equivalent experience; minimum 3 years managerial experience in an EU Member State indirect taxation administration; strong English communication skills; overall responsibility for implementation and financial management; co-chairs PSC; signs reports and addenda.
• Resident Twinning Adviser: University degree or 8 years equivalent experience; minimum 3 years managerial experience in an EU MS indirect taxation administration; fluent English; full-time presence in ITA BiH; leads daily operations, supervises experts, prepares ToR and reports; coordinates with all stakeholders. Western Balkans experience is an asset.
• Component Leaders: Two roles, one for customs and taxation, one for risk management and internal audit; university degree or 8 years equivalent; at least 3 years professional experience in relevant domains within an EU MS administration; knowledge of EU legislative and institutional requirements; experience in Twinning or similar TA.
• Short-term experts: Officials or assimilated agents of MS public administrations or mandated bodies; university degree or 8 years equivalent; at least 3 years specific professional experience; training delivery experience; fluent English.

Monitoring, Reporting and Sustainability

Monitoring and reporting are conducted through quarterly interim reports and a final report, each including narrative and financial sections as per Annex A7 of the Twinning Manual. The Project Steering Committee validates progress against mandatory results, endorses corrective actions, and oversees work plan updates. Sustainability is supported by adoption of EU-aligned legal acts, institutionalised procedures, and retained staff capacity within ITA BiH.

Templates and Application Structure

Applicants must use the Standard Twinning templates provided in Annex C9 and align with the Twinning Manual. The core dossier typically includes the following structure.

1. 1Cover page and administrative identification: Call reference, Twinning Fiche reference, Lead Member State, contact details.
2. 2Executive summary: Objectives, components, expected results, duration, budget, and added value of the proposing MS consortium.
3. 3Context and needs analysis: Assessment of current alignment, institutional setup, pending legal acts and IT systems, and link to the acquis and SAA obligations.
4. 4Strategy and methodology: Work approach for each component, sequencing, capacity development modalities, peer-to-peer methods, and change management.
5. 5Work plan by components and results: Activities, outputs, milestones, responsibilities, and timeline; integration of cross-cutting issues such as equal opportunity and anti-corruption.
6. 6Logical framework: Indicators with baselines and targets, sources of verification, risks and assumptions consistent with the fiche.
7. 7Staffing and expertise: CVs and profiles of Project Leader, RTA, Component Leaders and key short-term experts; management and coordination arrangements.
8. 8Training and knowledge transfer plan: Curricula, workshops, on-the-job training, study visits, and sustainability of learning.
9. 9Risk management and quality assurance: Risk register, mitigation measures, and internal QA processes.
10. 10Coordination and stakeholder engagement: Arrangements with ITA BiH, EU Delegation, and other stakeholders; PSC functioning.
11. 11Reporting and monitoring plan: Interim and final reporting structure and schedule, indicators tracking.
12. 12Budget and cost breakdown: Eligible cost categories and justifications according to Twinning rules under direct management.
13. 13Annexes: Detailed CVs, Gantt chart, organigram, draft ToR for short-term experts, communication and visibility plan, cross-cutting compliance statements.

Evaluation Considerations and Readiness Factors

• Compliance with Twinning eligibility and participation rules for EU Member States and mandated bodies.
• Demonstrated expertise in UCC alignment, NCTS Phase 6, AEO, VAT refunds, excise controls, and customs laboratory accreditation.
• Operational feasibility of deploying an RTA in Banja Luka and providing sustained expert inputs across components.
• Robust indicators with clear baselines and targets reflecting reductions in physical controls, improved VAT refund timeliness and accuracy, and established ISO 17025 readiness.
• Strong risk management approach addressing inter-institutional coordination, legislative adoption timelines, and IT interoperability constraints.
• Sustainability measures including institutionalisation of procedures, training-of-trainers, and integration with ITA BiH digital signature and paperless workflows.

Contacts and Institutional Framework

• Implementing agency: Delegation of the European Union to Bosnia and Herzegovina, Skenderija 3a, Sarajevo; contact: Programme Manager.
• Beneficiary focal points: ITA BiH Communication and International Cooperation Department for coordination with PL and RTA counterparts.
• Institutional context: ITA BiH is an autonomous state-level administration responsible for customs duties, VAT, excise duties and road taxes, operating through HQ in Banja Luka and four regional centres with extensive border and customs office coverage.

Answer Set: Required Categorisation

Eligible Applicant Types:EU Member State public administration, mandated body of an EU Member State public administration. Typical institutions include customs authorities, tax and revenue administrations, ministries of finance, and state-designated mandated public bodies. Other types such as startups, SMEs, large enterprises, NGOs, or non-EU administrations are not eligible as Twinning Member State partners.

Funding Type:Grant under the Twinning instrument financed by IPA III.

Consortium Requirement:Consortium is allowed but not mandatory. A single EU Member State administration can apply, or a consortium of EU Member State administrations and mandated bodies with one Lead Member State.

Beneficiary Scope (Geographic Eligibility):Applicants must be from EU Member States. The beneficiary country is Bosnia and Herzegovina under the IPA III geographic scope.

Target Sector:Public administration, customs, taxation, VAT, excise, compliance and risk management, internal audit, data protection, laboratory accreditation, trade facilitation, customs IT interoperability including NCTS and AEO.

Mentioned Countries:Bosnia and Herzegovina.

Project Stage:Implementation and institutional capacity building, including development and adoption of by-laws and procedures, operational deployment of risk-based methods, and accreditation readiness.

Funding Amount:€1,000,000 total EU contribution for the action.

Application Type:Open call via the EU Funding and Tenders Portal using Standard Twinning templates.

Nature of Support:Money to the selected Member State partner administration as a grant; non-monetary services in the form of technical assistance and capacity building to the beneficiary administration.

Application Stages:1 stage proposal submission and evaluation, followed by contracting and implementation with quarterly and final reporting.

Success Rates:Not specified in the call information.

Co-funding Requirement:Not specified. Twinning actions are generally financed at 100 percent EU contribution for eligible costs of the Member State partner; the beneficiary provides in-kind support such as office space and logistics.

Timeline and Submission

• Publication: 19 February 2026.
• Deadline: 17 April 2026 10:00 UTC.
• Submission channel: EU Funding and Tenders Portal prospect page linked above.
• Documents to consult before submission: ANNEX C1 Twinning Fiche, Annex C9 Standard Twinning, and the Twinning Manual.

Comprehensive Summary

This Twinning action grant of €1,000,000 under IPA III seeks an EU Member State administration or consortium to provide peer-to-peer institutional support to the Indirect Taxation Authority of Bosnia and Herzegovina over 18 months. The project will align customs and taxation practices with EU standards, prepare the customs laboratory for ISO 17025 accreditation, improve VAT refund processes, strengthen risk management and internal audit, and upgrade personal data protection practices. Priority areas include operationalising NCTS Phase 6 and steps toward the Common Transit Convention, deepening AEO implementation and mutual recognition, and improving risk-based controls to reduce physical inspections and combat fraud, including tobacco smuggling and other illicit trade. The action is fully embedded in SAA obligations, the EU’s 2025 Country Report recommendations, the country-wide PFM Strategy, and the Growth Plan Reform Agenda. Applicants must be EU Member State public administrations or their mandated bodies, with a Lead Member State providing a Project Leader and a Resident Twinning Adviser based full-time in ITA BiH, plus component leaders and short-term experts. Proposals should demonstrate strong expertise in UCC alignment, customs IT interoperability, VAT and excise operations, internal audit standards, and data protection. Success will be measured through adoption of aligned by-laws and procedures, laboratory accreditation readiness, improved VAT refund governance, risk management deployment across all levels, and enhanced internal audit and data protection capacities. The call is open for submission on the EU Funding and Tenders Portal and uses the Standard Twinning templates provided in the documentation.

This is a European Union twinning project designed to strengthen the institutional and operational capacities of the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina. The project aims to further align Bosnia and Herzegovina's indirect taxation legislation and practices with EU acquis requirements and standards, supporting the country's path towards EU accession. The twinning mechanism pairs EU Member State administrations with the beneficiary institution to transfer expertise, best practices, and support legislative harmonisation. ¹

Opportunity Identification

Opportunity Reference:EuropeAid / BA 22 IPA FI 01 26

Published Date:19 February 2026

Application Deadline:17 April 2026, 10:00 UTC

Status:Open for Submission

Funding Details

Total Budget:€1,000,000

Funding Source:Instrument for Pre-accession Assistance (IPA III), financed under IPA III Annual Action Programme 2022 for Bosnia and Herzegovina (IPAIII/2022/JAD.1045709/AAP2022)

Implementing Authority:European Commission Delegation to Bosnia and Herzegovina, with direct management by the EU. Programme Manager: Ms. Dijana Sikima, Delegation of the European Union in BiH, Skenderija 3a, Sarajevo, Tel: +387 33 254 785

Project Duration:18 months from project commencement

Beneficiary and Eligible Applicants

This is a twinning project where the direct beneficiary is the Indirect Taxation Authority (ITA) of Bosnia and Herzegovina. The ITA is an autonomous administrative organisation responsible to the Council of Ministers of Bosnia and Herzegovina through its Governing Board. It is the sole institution in Bosnia and Herzegovina responsible for implementing legislation on indirect taxation and collecting and allocating indirect tax revenues. ²

As a twinning project, the implementation involves partnerships between EU Member State administrations (the twinning partners) and the beneficiary institution. Eligible twinning partner organisations must be public administrations from EU Member States with demonstrated expertise in indirect taxation, customs, and tax administration. The project specifically requires experts from EU Member State indirect taxation authorities to serve as the Project Leader, Resident Twinning Adviser, Component Leaders, and short-term experts. ³

Project Objectives and Scope

Overall Objective:To further harmonise indirect taxation legislation with EU Acquis and to apply best EU practice in order to fulfil obligations from the Stabilisation and Association Agreement (SAA) regarding indirect taxation.

Specific Project Objective:To strengthen the ITA institutional capacities and to improve overall performance by applying new laws, procedures and best practices in customs, value-added tax (VAT), and excise controls.

Project Components and Expected Results

Component 1: Customs and Taxation:This component focuses on capacity building and legislative harmonisation in customs and taxation. It includes three mandatory results: Result 1.1 provides capacity building assistance in customs procedures, tariff classification, valuation, simplified procedures (including Authorised Economic Operator scheme), transit arrangements, and intellectual property rights enforcement. Result 1.2 focuses on preparing the ITA customs laboratory for evaluation of documentation and accreditation to the BAS EN ISO 17025 international standard. Result 1.3 aims to improve capacity building assistance in the area of VAT refund procedures to align with EU best practices. ⁴

Component 2: Risk Management and Internal Audit:This component strengthens the ITA's capacity in risk management and internal audit functions. Result 2.1 focuses on strengthening capacity for managing customs and tax compliance risks at strategic, tactical, and operational levels, including advanced taxpayer profiling techniques and risks arising from the digital economy. Result 2.2 aims to increase knowledge of the internal audit department staff in relation to international audit standards, financial management, and control procedures, aligning practices with Global Standards on Internal Auditing. Result 2.3 addresses improved personal data protection by ensuring the data protection department harmonises its work with the new Law on Data Protection. ⁵

Strategic Context and Alignment

Bosnia and Herzegovina was recognised as a candidate country for EU accession in December 2022 and participates in the Stabilisation and Association Process. This project supports Bosnia and Herzegovina's obligations under the SAA, particularly Article 97 on customs cooperation and Article 98 on taxation cooperation. The project aligns with the EU's Reform Agenda for the Western Balkans Growth Plan, approved by the European Commission in December 2025, which aims to foster sustainable economic development and support integration into the European Union. ⁶

The project builds on significant previous EU support to the ITA. Since 2010, the ITA has received continuous twinning and twinning light projects financed by the European Union. A recent twinning project implemented during 2024 and 2025 (IPA 2020) successfully strengthened the ITA's capacities. The current project is designed to consolidate these achievements and address remaining gaps identified in the 2025 Country Report for Bosnia and Herzegovina. ⁷

Key areas requiring further alignment include:legislative framework for VAT (partially aligned as of April 2025, with necessary bylaws pending adoption), excise duties on tobacco, alcohol and energy products (requiring full alignment), customs enforcement of intellectual property rights, implementation of the Common Transit Convention and New Computerised Transit System (NCTS Phase 6), and strengthening of the Authorised Economic Operator (AEO) programme. The administrative and operational capacity of the ITA requires substantial strengthening, particularly in operational posts and risk management systems. ⁸

Implementation Structure

Key Project Positions:

1. 1Project Leader (PL) from EU Member State partner administration: Holds responsibility for overall planning, supervision, coordination, and sound financial management. Must have university degree or 8 years equivalent experience, strong English communication skills, at least 3 years general professional experience in indirect taxation within an EU Member State, and at least 3 years experience in a managerial position within EU Member State indirect taxation administration.
2. 2Resident Twinning Adviser (RTA): Based full-time in the ITA for the project duration, leading day-to-day operations and coordinating all activities. Qualifications mirror those of the Project Leader, with relevant Western Balkans working experience considered an asset.
3. 3Component Leaders: Two specialists are required, one for Customs and Taxation (legal aspects and capacity building) and one for Risk Management and Internal Audit. Must have university degree or equivalent 8 years experience, fluent English, at least 3 years professional experience in relevant indirect taxation domains, and experience in twinning or similar international projects.
4. 4Short-term Experts: Officials from EU Member State administrations providing specialised expertise under overall responsibility of the Member State PL and coordination of the RTA. Must have university degree or 8 years equivalent experience, at least 3 years specific professional experience in relevant areas, experience implementing training courses, and fluent English.

Beneficiary Institution Counterparts:Contact person: Ms. Jasna Pavic, expert adviser in Communication and International Cooperation Department, ITA BiH, Bana Lazarevica bb, 78000 Banja Luka, Phone: +387 51 335 143. Project Leader counterpart: Mr. Ratko Kovacevic, Head of Cooperation and International Cooperation Department, ITA BiH, Phone: +387 51 335 363. RTA counterpart: Ms. Jasna Pavic (same contact as above).

The ITA is required to provide sufficient office space for the MS Twinning Partner team (including the RTA, Project Assistant, and short-term experts), meeting space as necessary, furnished project office with telephones, personal computers with email and internet access, photocopying, and fax machines. ⁹

Project Governance and Management

Project Steering Committee:A Project Steering Committee (PSC) will be established to oversee implementation. The PSC will be co-chaired by the Member State Project Leader and the Beneficiary Country's Project Leader. Key responsibilities include monitoring progress against mandatory results and outputs, ensuring effective coordination among all stakeholders, reviewing and finalising interim reports, and discussing work plan updates. Composition and functioning details are outlined in the Twinning Manual.

Reporting Framework:All project reports include narrative and financial sections covering elements specified in Annex A7 of the Twinning Manual. Two types of reports are foreseen: interim quarterly reports submitted for review at each PSC meeting, and a final report. Narrative sections assess progress against mandatory results, include specific recommendations, and identify corrective measures to keep the project on course. All formal communications, including reports, are conducted in English.

Monitoring and Evaluation:The National IPA Coordinator (NIPAC) has established a sub-unit responsible for Monitoring and Evaluation. This unit ensures preparation of reports and analyses required by the IPA Monitoring Committee, organises IPA MC meetings, and interacts with the Council of Ministers and Parliament on implementation matters. Performance is measured against indicators related to baseline situations, with progress assessed through ITA reports and EU official reports. The performance may be subject to sector-specific evaluation by DG Enlargement. ¹⁰

Applicable EU Acquis and Standards

The project activities target alignment with extensive EU legislation and standards, including: EU customs code (Regulation 952/2013 and delegated/implementing regulations), VAT directives (Council Directive 2006/112/EC and administrative cooperation regulations), excise duty directives and regulations (Directive 2008/118/EC and related measures), Common Transit Convention procedures, Union Customs Code and related implementing rules, decisions on paperless customs environments, and customs action programmes. Additional standards include international norms for laboratory accreditation, Global Standards on Internal Auditing, and WHO Framework Convention on Tobacco Control protocols. ¹¹

Key Implementation Challenges and Context

Bosnia and Herzegovina's ITA faces several operational and legislative challenges that this project addresses. The customs tariff and goods classification are aligned with EU combined nomenclature, but four companies currently hold Authorised Economic Operator (AEO) status, indicating limited uptake of simplified procedures. The country remains an observer in the Common Transit Convention and intends to join upon meeting legal and technical requirements. The computerised transit system became operational in August 2022, but full NCTS Phase 6 implementation requires further development. ¹²

Administrative capacity constraints exist particularly in operational posts. The risk management system remains inadequate, with customs authorities still performing approximately 40 percent of checks physically (down from 60 percent in 2023). Customs information systems require alignment with EU requirements to achieve interoperability with common EU customs IT systems. Bosnia and Herzegovina has yet to accede to certain WHO protocols on tobacco control, though the Council of Ministers approved joining the protocol to eliminate illicit trade in tobacco products in October 2025. ¹³

The ITA continues implementing legislative reforms including new Customs Policy Law (in force since August 2022) and associated implementing regulations, VAT legislation amendments, and excise duty law revisions. Over €1.8 millionelectronic documents signed with qualified digital signatures were submitted to the ITA by October 2025, reflecting significant progress in digitisation. The ITA is committed to transitioning to paperless business operations and has made electronic signatures mandatory for all taxpayers since January 2024. ¹⁴

Sustainability and Expected Impact

Project sustainability depends on the commitment of the beneficiary institution. Prospects for sustainability are strong because the introduction of EU-aligned legal acts and trained staff are expected to produce lasting effects. As a capacity building project, the critical issue is retaining ITA staff who gain knowledge and expertise through project activities. The EU Member State partner will propose its own approach to ensure sustainability of project achievements. Good governance principles, equal opportunity practices, non-discrimination, environmental considerations, and anti-corruption measures are integrated throughout project implementation. ¹⁵

Sustainable Development Goals Alignment

The project contributes to three Sustainable Development Goals:SDG 8 (Decent Work and Economic Growth) through improved institutional capacity and efficient tax administration, SDG 16 (Peace, Justice and Strong Institutions) through strengthened public administration and governance, and SDG 17 (Partnership for the Goals) through international cooperation and knowledge transfer. ¹⁶

Key Documents and Resources

Primary Documentation:

• Twinning Fiche (published 19 February 2026): Contains detailed project design, objectives, components, implementation arrangements, and logical framework
• Annex C1a: Simplified Logical Framework matrix with indicators, baselines, targets, sources of verification, risks, and assumptions
• Annex C9: Standard Twinning documentation template
• EU Funding and Tenders Portal: Official submission platform at EU Portal

Timeline and Important Dates

Application and Submission Information

Applications must be submitted through the EU Funding and Tenders Portal before the deadline of 17 April 2026 at 10:00 UTC. As a twinning project, this is not a competitive call where multiple beneficiaries apply. Rather, the European Commission Delegation to Bosnia and Herzegovina manages the contracting process to select a qualified EU Member State partner administration. EU Member State administrations interested in partnering should contact the EU Delegation for guidance on twinning procedures and submission requirements. All formal communications and project documentation must be in English. ¹⁷

The IPA III twinning instrument supports capacity building through institutional partnerships, knowledge transfer, and expert exchange. Unlike traditional grant calls, twinning projects are managed directly by the European Commission and involve direct negotiation with selected EU Member State administrations to form the twinning partnership. Prospective partners should consult the Twinning Manual and contact the EU Delegation Programme Manager (Ms. Dijana Sikima) for detailed guidance on application procedures specific to twinning projects.

Contact and Support Information

EU Delegation Contact:Ms. Dijana Sikima, Programme Manager, Delegation of the European Union to Bosnia and Herzegovina, Skenderija 3a, Sarajevo, Tel: +387 33 254 785, Fax: +387 33 666 037

ITA Beneficiary Contact:Ms. Jasna Pavic, expert adviser in Communication and International Cooperation Department, Indirect Taxation Authority of BiH, Bana Lazarevica bb, 78000 Banja Luka, Phone: +387 51 335 143

Official Portal:EU Funding and Tenders Portal: EU Funding Portal

Footnotes

1. 1The twinning tool pairs EU Member State administrations with beneficiary administrations in pre-accession and neighbouring countries to transfer expertise and support institutional capacity building through long-term advisory presence, expert missions, and training programmes.
2. 2The ITA was established by Law on Indirect Taxation System adopted by Parliament in 2003. It employs over 2,400 staff across headquarters in Banja Luka and regional centres in Sarajevo, Mostar, and Tuzla, with 30 customs stations and 59 customs offices throughout Bosnia and Herzegovina.
3. 3All twinning personnel must be officials or assimilated agents of a Member State public administration or mandated body. The Project Leader is responsible for overall management, the RTA for day-to-day coordination, Component Leaders for specific technical areas, and short-term experts for delivering specialised knowledge on missions.
4. 4The customs laboratory capacity building aims to establish accreditation to international standard BAS EN ISO 17025 for testing and calibration activities. VAT refund improvements target alignment with EU Directive 2006/112/EC administrative cooperation rules and modern refund procedures.
5. 5Risk management capacity building includes advanced taxpayer profiling techniques, detection of risks from digital economy transactions, compliance risk management procedures, and customs enforcement training. Internal audit alignment targets the International Standards for the Professional Practice of Internal Auditing (Global IIA Standards).
6. 6The SAA was signed in Luxembourg on 16 June 2008. Articles 97 and 98 specifically commit both parties to cooperation on customs and taxation matters with the goal of aligning Bosnia and Herzegovina legislation with EU acquis. Bosnia and Herzegovina's formal EU membership application was submitted in February 2016.
7. 7The IPA 2020 twinning project concluded in 2025 with significant results including drafting of new Customs Policy Law, VAT legislation, excise duty law, and enforced collection procedures law. The completed project provided vital EU support and established foundations for continued capacity building through the current initiative.
8. 8The 2025 Country Report for Bosnia and Herzegovina indicates that while VAT legislative framework is partially aligned, necessary bylaws are pending. Full alignment required for excise duties on tobacco, alcohol and energy products under Directives 2008/118/EC and 2011/64/EU. The country remains an observer to the Common Transit Convention.
9. 9The ITA currently has organisational structure comprising five sectors, four departments, and the Office of Director at headquarters level, with regional operations through four regional centres and extensive network of customs stations and offices covering all border crossing types (road, air, rail, postal) and free zones.
10. 10The NIPAC sub-unit for Monitoring and Evaluation ensures coordination with IPA Monitoring Committee, which reviews overall effectiveness, efficiency, quality, coherence, and coordination of implementation. The IPA Management Committee comprises representatives from Bosnia and Herzegovina and the European Commission.
11. 11Key EU acquis includes Regulation 952/2013 (Union Customs Code), Delegated Regulation 2015/2446 and Implementing Regulation 2015/2447, Council Directive 2006/112/EC (VAT), Directive 2008/118/EC (excise duty), Council Regulation 1798/2003 (VAT administrative cooperation), and various decisions on paperless customs procedures and customs action programmes.
12. 12The New Computerised Transit System (NCTS) became operational in Bosnia and Herzegovina in August 2022. The country intends to join the Common Transit Convention upon meeting all legal and technical requirements. The protocol to the WHO Framework Convention on Tobacco Control to eliminate illicit trade in tobacco products was approved by Council of Ministers in October 2025.
13. 13The risk management system assessment indicates that customs authorities continue to perform approximately 40 percent of checks physically, though this represents improvement from 60 percent in 2023. Capacity strengthening in the RTA and strategic/tactical/operational risk management levels is a primary project focus.
14. 14The new Customs Policy Law and Implementing Regulation in Bosnia and Herzegovina have been in force since 1 August 2022. The ITA has introduced mandatory electronic signature for all tax returns since January 2024. By October 2025, over €1.8 millionelectronically signed documents were submitted, reflecting significant digitalisation progress.
15. 15Sustainability strategy relies on institutional knowledge retention, permanent integration of new procedures and legislation into ITA operations, and staff capacity development. The Member State partner will propose specific sustainability measures. Equal opportunity, non-discrimination, and good governance principles are mandated throughout project implementation per IPA Implementing Regulation requirements.
16. 16SDG 8 contributions include strengthened institutional capacity for effective tax administration and economic governance. SDG 16 contributions involve improvements in public administration effectiveness, institutional development, and corruption prevention. SDG 17 contributions emphasize international partnership and knowledge transfer between EU and pre-accession country administrations.
17. 17The EU Funding and Tenders Portal submission service is available at the opportunity details page. Twinning is implemented under direct management by the European Commission Delegation to Bosnia and Herzegovina. Interested EU Member State administrations should contact the Programme Manager for guidance on twinning partnership arrangements and specific submission procedures, as twinning differs from competitive grant calls.