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Kosovo VAT on foreign digital services

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.

The current VAT rate in Kosovo is 18%. VAT Calc’s global VAT and GST on digital services blog tracks the implementation of VAT, GST and sales tax on digital services.

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
  • Gaming

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
Albania 20% Jan 2015 Nil
Andorra 4.5% Jan 2015 Nil
Belarus 20% Jan 2018 Nil
Georgia 18% Oct 2021 Nil
Iceland 24% Nov 2011 ISK 2 million
Kosovo 18 Sep 2015 Nil
Moldova 20% Apr 2020 Nil
Norway 25% Jul 2011 NOK 50,000
Russia 16.67% Jan 2017 Nil B2C & B2B
Serbia 20% Apr 2017
Switzerland 7.7% Jan 2010 CHF 100,000 on global income
Turkey 18% Jan 2018 Nil
Ukraine 20% Jan 2022 UAH 1m
UK 20% Jan 2015 Nil

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