Kosovo raises VAT to 18%

Kosovo has increased its standard VAT rate from 16% to 18%. A reduced VAT rate of 8% on essentials was introduced to offset the impact on the less wealthy.

The VAT registration threshold has been lowered from €50,000 to €30,000 per annum.

Foreign companies providing taxable supplies in Kosovo may have to register for VAT as a non-resident trader, which may include the appointment of a fiscal representative.

The increase came as part of a range of corporate, personal and indirect tax changes. VAT registered companies are liable to submit monthly returns, which are due on the 20^th of the month following the reporting period.

Click for free Kosavan VAT info