Administrative Instruction 03/2015 on implementing Law 05/L-037
on VAT
The new Law 05/L-037 on VAT includes several significant changes
from the previous VAT law (Law 03/L-146 as amended by Law 03/L-197
and Law 04/L-108). Most notably, the standard VAT rate increased
from 16% to 18%, certain goods and services are now subject to a
reduced VAT rate of 8% and the VAT registration threshold has
decreased from EUR 50,000 to EUR 30,000. Administrative Instruction
3/2015 on implementing the provisions of the new VAT law became
effective on September 1st 2015.
Compared to the previous Administrative Instruction 10/2010, the
current one provides a comprehensive interpretation of the
respective provisions of the VAT law. VAT application procedures
are elaborated in more detail, as a consequence, the VAT treatment
for certain transactions that have been subject to dispute between
taxpayers and the Tax Administration of Kosovo have now been
resolved.
