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 20^th of the month following along with the remittance of VAT liabilities.

Europe VAT on digital services