Tax Administration of Kosovo, based on Administrative Instruction MoF-No. 06/2016, issued the Public Ruling No. 03/2019 – Obligation to pay VAT on the supply of construction services – Applying the reverse charge.
The purpose of this Public Ruling is to clarify the tax treatment for VAT aspects of the services in the field of construction, namely the application of Reverse Charge for VAT, domestically.
Application of reverse charge in construction only applies to taxable persons who are part of the transaction (supplier and recipient of service). Therefore, the supplier and the recipient of the service must be VAT Filers in Kosovo.
Apart from this, invoicing which is done by the main contractor to the investor is treated as taxable supply under normal VAT rules. Therefore, in these cases, the invoice which is issued by the contractor who is VAT filer is issued with VAT included.
This Public Ruling enters into force on 01 January 2020 and repeals the Public Explanatory Decision No. 05/2016 dated 21 December 2016.
The Public Ruling No. 03/2019 – Obligation to pay VAT on the supply of construction services – Applying the reverse charge can be found on the TAK website www.atk-ks.org at the link Publications – Public Ruling.
Tax Administration of Kosovo