Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 18% | 8% |
The local name for VAT in Kosovo is Tatimi mbi Vleren e Shtuar (TVSH). There are basically 2 VAT rates in Kosovo:
- Standard VAT rate is 18%
- Reduced VAT rate is 8%
Recent developments
For more information about (recent) rate change developments in …, please click here.
Standard rate: 18%
This rate applies for all transactions that take place in Kosovo, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Kosovo applies various exemptions with a refund of tax paid at preceding stages (zero rates), such as:
• Export of goods
• International transport
• Supplies under diplomatic and consular arrangements
• The supply of goods or services to international and inter-governmental bodies
• Supply of gold to the Central Bank of Kosovo
• Related supply of services by intermediaries taking part in the above transactions
Exemptions without the right to credit
• Hospital services and medical care
• Education
• Health insurance, life insurance, reinsurance and related services performed by insurance brokers and agents
• Financial services
• Welfare services
• Betting, lotteries and other forms of gambling
• Supply of land or land on which a building or house stands
• The supply of houses, apartments or other accommodations used for residential purpose, including garages and basements
• Leasing of immovable property
Reduced rate: 8%
• Water, except bottled water
• Electricity, central heating, waste collection and other waste treatment
• Grains such as barley, corn, maize varieties, oats, rye, rice and wheat
• Products made from grain for human consumption
• Oils made from grains or oilseeds for use in cooking for human consumption
• Dairy and dairy products for human consumption
• Salt appropriate for human consumption
• Eggs for consumption
• Lending of books from libraries, including brochures, leaflets and similar printed materials; children’s picture books; drawing and coloring books; music printed texts and manuscripts; and maps, hydrographic charts and similar materials
• Textbooks and serial publications
• Information technology equipment
• Supply of medicines, pharmaceutical products, instruments, and medical and surgical devices
• Medical equipment, ambulances, aids and other medical devices to facilitate activity or treat a disability for exclusive use by the disabled, including the repair of such goods and supply with children’s vehicle seats
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on May 12, 2021.
