The Tax Administration of Kosovo, reminds all foreign entities that provide digital services or electronically supplied services, that based on the applicable Tax Legislation of Kosovo, such providers are obliged to register for VAT in Kosovo and charge VAT at the standard rate of 18% in their sales to non-taxable persons (consumers) in the territory of the Republic of Kosovo.
According to the legislation in force, for electronically provided services to non-taxable persons, i.e. persons who are not registered for VAT in Kosovo, who have their permanent address or usually reside in Kosovo, the place of supply of these services is considered to be Kosovo and VAT should be charged in Kosovo at the standard rate of 18%.
Law no. 05/L-037 on VAT provides a list of electronically supplied services, including the following:
- Website provision, web-hosting, remote maintenance of software and equipment;
- Supply of software and its updating;
- Providing image, text and information, and making the database available;
- Supply of music, films and games, including prize winning games and games of chance, political, cultural, artistic, sporting, scientific and entertainment events;
- Supply of distance learning.
The Tax Administration of Kosovo notifies foreign providers of electronically supplied services that the fulfillment of tax obligations must be done either through the appointment of a fiscal representative or through the registration of a permanent establishment in Kosovo. The obligation to register derives from the beginning of economic activity in Kosovo, respectively providers are legally obliged to register for VAT before making taxable sales in Kosovo.
Failure to comply with the tax according to the applicable legislation and conducting economic activities in Kosovo without fiscal registration is subject to various sanctions provided by Law no. 03/L-222 on Tax Administration and Procedures.
Therefore, we encourage all providers of electronically supplied services, whether local or international, to register for VAT and meet tax obligations under applicable law.
Tax Administration of Kosovo