Kosovo introduced Value Added Tax on non-resident providers and digital marketplaces of digital or electronic services to its consumers from 1 September 2015. There is no VAT registration threshold for non-residents, and a Fiscal Representative must be appointed.
What digital services are liable to VAT in Kosovo?
Income from the following digital services are subject to VAT:
- Telecommunications data and voice
- Access to the internet
- Broadcast television and radio
- Text, images, video and music
- E-books and online journals
- SaaS or cloud-based software
- Online advertising
VAT registration and compliance
Non-residents must register with the Tax Administration within 15 days of commencement of trade in the country. There is no VAT registration threshold for foreign businesses. A resident Fiscal Representative is required to represent the company, and they will be jointly and severally liable for any VAT due. There is no simplified online registration process.
B2B transactions are excluded under the reverse charge mechanism. If a non-resident is only supplying tax registered resident businesses, then they are not obliged to VAT register.
Once VAT registered, electronic returns are due monthly. They should be filed by the 20th of the month following along with the remittance of VAT liabilities.
Europe VAT on digital services
|Country (click for details)||Rate||Date||Threshold||Comments|
|EU 27 member states||17% to 27%||Jan 2015||€10k EU residents; Nil for non-EU|
|Bosnia Herzegovina||17%||Jan 2023||BAM 50.000|
|Iceland||24%||Nov 2011||ISK 2 million|
|Norway||25%||Jul 2011||NOK 50,000|
|Russia||16.67%||Jan 2017||Nil||B2C & B2B|
|Switzerland||7.7%||Jan 2010||CHF 100,000 on global income|
|Ukraine||20%||Jan 2022||UAH 1m|