Kosovo - VAT Amendments to Comply with EU Law
Kosovo’s government has published a draft law containing amendments that would further align the country’s VAT legislation with the EU VAT directive, in light of Kosovo’s efforts to become a member of the EU.
- The introduction of new payment procedures and the deferment of VAT on imports
- The introduction of a flat-rate scheme for the agricultural sector
- A reduction in the VAT rate for public transport and milling services to 8% (standard rate 18%)
- A reduction in the minimum threshold for VAT input credit refund claims from EUR 3,000 to EUR 1,000
- A change in the VAT rules regarding bad debts, providing that an amount would not be considered a bad debt for VAT purposes unless collection procedures are initiated within 24 months from the payment deadline
- The introduction of new VAT compliance penalties ranging from EUR 1,000 to EUR 50,000
Subject to approval in parliament, the changes are to apply from 1 January 2019.