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27 Otra Información
What are the current rate(s) of indirect tax?
Are there any confirmed or anticipated changes to these rates?
What is the principal indirect tax?
Is there a registration limit for the tax?
Does the same registration limit apply to non-established businesses?
Does a non-established person need to appoint a fiscal representative in order to register?
How often do returns have to be submitted?
Are penalties imposed for the late submission of returns/payment of tax?
Are any other declarations required?
Are penalties imposed in other circumstances?
Can the tax incurred by overseas businesses be claimed if they are not registered in your country?
Currently there is only one VAT rate of 16%.
Ministry of Finance may issue a sub-legal act introducing reduced and higher VAT rate for designated supplies of goods and services. The reduced rate will not be lower than 5% and the higher rate will be not higher than 21%.
Value Added Tax (VAT) is the principal indirect tax in the Republic of Kosovo. It is a tax on consumption, and is collected on business transactions and imports.
Yes. It is required to register for VAT from the moment when total supplies in the previous 12 month period, exceed a threshold of €50,000.
No. There is no registration limit for businesses that are not established in the Republic of Kosovo, they will need to register from the beginning of their economic activity in Kosovo.
In certain circumstances, a non-established person shall appoint a fiscal representative.
Tax period for all taxable persons is each calendar month; therefore a taxable person shall submit VAT returns every month.
Yes. If a VAT return, or the corresponding payment, is submitted late a penalty can be imposed.
Yes, there are local tax declarations, including, urban maintenance and construction tax, education surcharges and flood prevention expense.
Yes. Penalties can be imposed for a range of errors or omissions.
Not applicable.
Indirect tax snapshot
What is the principal indirect tax?
Value Added Tax (VAT) is the main type of indirect taxation in the Republic of Kosovo.
It is a tax on consumption which is applied in different phases of the production, delivery and trade with goods and services, and in the end it is carried forward from the last consumer. It is also applied to goods, and certain services, entering the country. Although VAT in the end is carried forward from the last consumer by being included in the price paid, the responsibility for charging, collecting and paying it to the tax authority at each stage of the process rests with the taxable person making the supply.
Taxable person is any natural or legal person who is, or is required to be registered for VAT, and who in Kosovo independently carries out any economic activity in a regular or non-regular manner, whatever the purpose or results of that economic activity.
A taxable person will charge VAT (output tax) on its sales, and will deduct VAT (input tax) on its purchases (including any VAT paid at importation). The difference between the output tax and the deductible input tax in each tax period will be the amount of VAT payable by the business to the tax authority.
Where the input tax exceeds the output tax, a refund can be claimed.
VAT shall be charged on supply of goods and services made for consideration within the territory of Kosovo by a taxable person and on the importation of goods in Kosovo.
Currently there is only one VAT rate applicable which is 16%. In addition, some goods and services are exempted with credit right and some others are exempted with no credit right.
Taxable person that make exempt supplies with no credit right are unable to claim all of the input tax that they incur, so the VAT paid to suppliers will be a ‘real’ cost, while taxable person that is exempted with credit right is entitled to claim all the input tax which is used for taxable supplies.
Most goods imported into the Republic of Kosovo are subject to VAT. The tax will have to be paid by the importer at the time of importation. Where the importation is for business purposes, it may be possible to reclaim the tax (subject to certain rules).
Is there a registration limit for the tax?
Every person who meets all conditions of the definition of taxable person is required to register for VAT from the moment when total supplies in the previous 12 month period, exceeds a threshold of €50,000.
The month in which the threshold is exceeded counts for the twelve 12 months period calculation. Only that proportion of the supply which results in surpassing the threshold will be taken into consideration for purposes of VAT.
When calculating the threshold, the person shall consider the total amount of all supplies during the previous 12 month period. Supplies shall be deemed any supplies of any goods and services at any rate, including those exempt, with or without right to deduct.
When a person is registered for VAT purposes, Tax Authorities shall issue such taxable person a registration certificate containing his information. A physical person conducting the same or different economic activities and has several places of economic activity within Kosovo, shall be identified by one individual and unique VAT registration number.
A natural person conducting the same or different economic activities and has several places of economic activity within Kosovo, shall be identified by one individual and unique VAT registration number. A partnership and grouping of persons shall be identified by one single VAT registration.
Every person who has not notified and has not been registered in due time shall be registered in a compulsory way by tax authorities with retroactive effect as of the date of exceeding the threshold. Furthermore, a penalty may be imposed by the tax authority if a taxable person fails to register at the correct time.
Does the same registration limit apply to non-established businesses?
The normal VAT registration limit does not apply to persons who are not established in the Republic of Kosovo. The persons not established in Kosovo are subject to VAT registration, from the beginning of their economic activity in Kosovo, regardless of the threshold.
Republic of Kosovo
Does a non-established business need to appoint a fiscal representative in order to register?
Taxable person not established in Kosovo which is engaged in economic activity in Kosovo shall appoint a tax representative except for those cases that the receiver of the taxable supplies is liable to report and pay VAT.
The taxable person shall be registered under his own name and the name of his tax representative within 5 days after the appointment as tax representative and prior to the starting of economic activity in Kosovo.
How often do returns have to be submitted?
A taxable person shall submit a tax declaration and remit the related payment not later than the 20th of the calendar month following the end of each tax period.
Are penalties imposed for the late submission of returns/payment of tax?
Administrative penalty for late declaration is 5% of due tax for each month or part of the month that is late, with a maximum administrative penalty of 25% of tax due. While, administrative penalty of late payment is 1% of tax due for each month or part of the month that payment is late, up to maximum 12 months.
Furthermore, an interest for late payment at rate of 1.25% per month is also applicable.
Are any other declarations required?
Yes. There are local tax declarations, including, urban
maintenance and construction tax, education surcharges, flood prevention expense.
Are penalties imposed for the late submission of returns/payment of tax?
Administrative penalty for late declaration is 5% of due tax for each month or part of the month that is late, with a maximum administrative penalty of 25% of tax due. While, administrative penalty of late payment is 1% of tax due for each month or part of the month that payment is late, up to maximum 12 months.
Furthermore, an interest for late payment at rate of 1.25% per month is also applicable.
Are any other declarations required?
Yes, there are local tax declarations, including, urban maintenance and construction tax, education surcharges and flood prevention expense.
Are penalties imposed in other circumstances?
Penalties are applicable also to the taxpayer who makes supplies without being registered for VAT. Such penalties are provided below:
• 15% of the VAT due on those supplies if failure to register is due to negligence of person making taxable supplies of less than €10,000
• 25% of the VAT due on those supplies if failure to register is due to negligence of person making taxable sales of
€10,000 or more.
In addition, a taxable person who fails to issue a VAT invoice, or who issues an incorrect invoice that results in an apparent decrease in the amount of VAT due or an apparent increase in the amount of credit claimable shall be liable to an administrative penalty of:
• 15% of the apparent decrease or increase in the amount of VAT due where the failure to issue a VAT invoice or the issue of an incorrect invoice was due to the negligence of the taxable person
• 25% of the apparent decrease or increase in the amount of VAT due where the failure to issue a VAT invoice or the issuance of an incorrect invoice was due to the carelessness of the taxable person.
A taxable person who commits any of the following violations with respect to VAT shall be liable to an administrative penalty of 250 Euros for each of the violation:
• failure to apply for VAT registration upon reaching the applicable threshold
• failure to apply for removal from the VAT register when required to do so
• failure to display a copy of the VAT registration certificate in the manner required by applicable law.
Furthermore, a taxpayer registered for VAT who allows another person to use its unique VAT registration certificate shall be liable to an administrative penalty of up to €5000. The person using a VAT certificate belonging to someone else will be liable for the same administrative penalty.
In addition to the administrative penalties, such cases shall be presented by the tax investigation unit to the public prosecutor for criminal prosecution.