LINK: For a turnover below the threshold, voluntary VAT registration is possible. The registration of VAT for foreign entities or persons not established in Kosovo should be completed, regardless of the threshold of their economic activity in Kosovo, from the beginning of their economic activities. However, this is not required of people who provide deliveries for which the place of delivery is considered Kosovo and for which the recipient is responsible for the payment of VAT. The MCC`s growth programme with the Government of Kosovo addresses two main obstacles to economic growth – the lack of reliable electricity and the real and perceived weaknesses of the rule of law – in one of Europe`s poorest countries. “The United States welcomes the resolution of the Kosovo customs issue and the lifting of reciprocal measures on Serbian products. The MCC is pleased to resume the implementation of the threshold development programme and the development of the proposed compact programme in Kosovo. The GCC looks forward to a strong and ongoing partnership with the people of Kosovo and their government as we work together to reduce poverty through economic growth. Mandatory pension contributions are deductible for employer-made EDU, while voluntary contributions and contributions are not deductible above 15% of annual salary. VAT is generally levied when goods or services are delivered. Specific rules apply when the provision of goods or services is made over a specified period of time when successive payments are made and in the case of long-term contracts.

A special self-identification regime applies to deliveries of work and work as well as supplies for which personnel work in the construction sector. When goods and services purchased are used for both taxable and exempt deliveries, VAT is deducted in proportion to transactions for which VAT is deductible. VAT is levied according to the following conditions that are met in the first place: payment is made, billing is made or goods/services are delivered. Tax payers have the right to submit the VAT credit over subsequent tax periods or to claim VAT refunds if the following conditions are met: companies are required to withhold income tax (PIT) from the gross wages of their employees. Progressive tax rates between 0 and 10% are applied to gross income. The assessment of the property for the property tax (calculated in EUR/m2) depends on the situation and the nature of the property. The provision of goods and services co-financed by donations from foreign governments and the Government of Kosovo, intended for projects with the public as a beneficiary, is exempt from vat (with a right of deduction) if such an exemption is provided between the parties and if the kosovo government`s participation does not exceed 20%. Like the normal self-correcting mechanism, the subject who is liable for VAT on delivery is the recipient of the work. Taxes are collected by the municipalities and vary according to the activity and location of the company. These taxes include automobile taxes, property taxes, environmental taxes and advertising. Property tax rates also vary for each municipality.

For the capital Pristina, the following rates apply on the basis of the category of goods and activities exported: most import duties on products originating in the ALECE/EU/Turkey are 10% in value (10% of the price paid or payable for imported goods); However, some imported products are exempt from paying the 10% import duty.