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Kosovo aligns to EU VAT

  • Aug 26, 2018 | Richard Asquith

Kosovo aligns to EU VAT

Kosovo is to introduce a range of changes on 1 January 2019 to bring its existing VAT rules into line with the European Union.  The Balkan state is seeking to join Slovenia and Croatia as the next state of the former Yugoslavia to join the EU.

The VAT amendments include:

  • Introduction of a VAT import deferment scheme
  • Flat-rate VAT scheme for the agriculture sector
  • Speedier VAT deregistration process
  • New rules on the liability position of fiscal representatives for non-resident tax payers
  • Reduction in the VAT rate of public transport to 8%
  • New VAT compliance infringement penalty regime
  • Changes to VAT bad debt rules
  • Reduction of VAT credit reclaimable threshold down to €1,000
  • Change the place of supply rule on public transport to be based on a mileage basis rather than location of the start of the journey
  • Zero-rating of school supplies

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.