Registering the Activity and Tax Registration (JIB) for a Rural Household Starting to Offer Tourism Services

When a rural household in East Herzegovina — in Trebinje, Bileća, Nevesinje, Gacko, Ljubinje, Berkovići or Istočni Mostar — decides to offer guests an overnight stay, home-cooked food or a taste of village life, this is no longer private hospitality but a registered economic activity. For that activity to be legal, the host must pass through several institutions that work in a chain: the local self-government unit (the municipality), the Tax Administration of Republika Srpska, and APIF. The exact order and set of documents depend on the legal form you choose, but the logic is always the same — first you register the activity, then you obtain a tax identity (JIB), then the entity is entered into the relevant registers, and only then is the accommodation categorized.

This guide describes that path in a general, practical way. It is not a substitute for advice from the clerk at your municipality or for the current rulebooks, because forms and fees change from time to time. The goal is to help you understand the whole picture before you visit the first counter, so you don't travel twice to the municipal center over a document you could have prepared in advance.

Who may provide tourism services in the countryside

Under the Law on Tourism and the hospitality regulations of Republika Srpska, tourism and hospitality services in the countryside may be provided by legal entities, entrepreneurs, and individuals registered in accordance with those regulations. For a rural household this practically means a choice among three forms:

• An individual under the rural-household regime — the easiest entry point. It is meant for a family that, within its own holding, offers a limited scope of services: a few rooms or apartments, food mainly from its own production, and a presentation of rural activities. There is less administration and a lighter tax treatment.
• An entrepreneur (sole proprietor) — suitable when services outgrow the frame of occasional hospitality, when you employ workers, or when you want a broader offer (catering, excursions, product sales).
• A company (limited liability, d.o.o.) — for larger capacity, several owners and more serious investment, usually with fund support.

The key point: a rural household is not an "informal" form. It, too, is registered, obtains a JIB and is subject to categorization — the procedure is simply simpler than for a company.

Choosing the form is the first and most important decision, because it determines everything that follows: where you file, which taxes and contributions you pay, and what records you keep.

Step 1 — Registering the activity

Registration of the activity begins at the economy department of the local self-government unit (municipality or city) in whose territory the household is located. You submit a request together with your ID card, proof of the right to use the property (title deed or a lease), and, if required, proof that the conditions for carrying out the activity are met.

The competent authority issues a registration decision that sets the activity code (most often in the field of accommodation and food preparation). This decision is the legal foundation for every later step — without it, the Tax Administration cannot assign a JIB. For companies, registration has an additional step at the competent registration body, but for a rural household and an entrepreneur the emphasis is on the municipality.

Step 2 — Tax registration and the JIB

Once you have the registration decision, you register with the Tax Administration of Republika Srpska to be entered in the Unified Register of Taxpayers. The Tax Administration assigns a JIB — the unique identification number, which is your entity's tax identity. (The term "PIB" is often heard as a synonym, but in Republika Srpska the official label is JIB; for resident individuals, identification is tied to the unique citizen number — the JMB.)

The procedure follows the RS Law on Tax Procedure and the rulebook on the registration and identification of taxpayers. Together with the tax registration application you usually attach:

1. The activity registration decision from Step 1.
2. Your ID card, i.e. a document showing the JMB.
3. Details of the business (giro) account and the seat of the activity.

After registration you receive the JIB, open a business account at a bank, and only then may you lawfully issue invoices and receive guest payments. You quote the JIB on every invoice, contract and filing.

Step 3 — Enrolling with APIF

APIF (the Agency for Intermediary, IT and Financial Services) maintains the registers of business entities in Republika Srpska and, of particular importance for rural tourism, a dedicated register of rural households and providers of hospitality services. This is where your entity is recorded, and APIF also receives your financial statements and keeps the register of bank accounts.

Enrollment with APIF is done using documents obtained earlier — the registration decision and proof of the assigned JIB. For rural households, APIF has published an instruction for entry and registration, so it is worth checking the current form before you go.

Step 4 — Categorizing the accommodation

If you offer accommodation, the facility must be categorized. Categorization confirms that the room, apartment or holiday house meets the prescribed sanitary-hygienic and technical conditions, and the outcome is a placement into an appropriate quality class.

You submit the categorization request to the competent municipal authority. As a rule, the procedure involves:

• proof of the registered activity and the JIB;
• a medical (sanitary) certificate of fitness to carry out the activity — for the host and the household members who take part in providing services;
• a visit by a commission (often in cooperation with the tourism organization) that checks the conditions on site.

If the conditions are met, the municipality issues a categorization decision. It is issued for a fixed term (indicatively a few years), after which it is renewed. Only with a final decision may you advertise the facility and receive guests.

The obligations that follow

Registration is not the end but the beginning of ongoing obligations:

• Fiscalization — recording turnover through a fiscal cash register/device, in line with the fiscalization regulations.
• Sojourn (tourist) tax — charged to guests per overnight stay and reported to the tourism organization; the check-in and check-out of guests and keeping a guest book are mandatory.
• Taxes and contributions — calculated and paid according to the chosen form of business; an entrepreneur has different obligations from an individual under the rural-household regime.
• Orderly records — keeping invoices and filing financial statements through APIF where prescribed.

Support and financing

For equipping and upgrading capacity, there are incentives from the RS Ministry of Trade and Tourism and the RS Ministry of Agriculture, Forestry and Water Management, credit lines from IRB RS, and EU rural-development programs (IPARD and initiatives such as SMART ERA). Conditions differ by public call, so follow the current tenders — proper registration and a JIB are regularly a precondition to apply.

• RS Government and ministries: vladars.net
• RS Tax Administration: poreskaupravars.org
• APIF: apif.net
• IRB RS: irbrs.org
• EU programs: europa.eu

Practical checklist (steps)

1. Decide the legal form — rural household (individual), entrepreneur, or a company.
2. Prepare the documents — ID card, proof of the right to the property, consents if needed.
3. Register the activity at your municipality's economy department and obtain the decision.
4. Register with the RS Tax Administration and obtain the JIB (entry in the Unified Register of Taxpayers).
5. Open a business account and enroll with APIF.
6. Obtain the medical certificate for the host and members who provide services.
7. File the categorization request with the municipality and await the commission's visit.
8. Set up fiscalization, sojourn-tax reporting and the guest book.
9. Check the incentives (RS ministries, IRB RS, IPARD) before your first investment.

If you take each step in order and with your documents prepared, the whole procedure is feasible without intermediaries — and the result is a legal, visible and incentive-eligible rural household ready to welcome its first guests.