Amendments to the Law on Value Added Tax in Kosovo

• Author: Simeana Beshi - Safet Krasniqi
• Position: University College 'FAMA' - University of Prizren 'Ukshin Hoti', University College 'FAMA'
• Pages: 259-264

ISSN 2410-3918

Acces online at www.iipccl.org

259

IIPCCL Publishing, Tirana-Albania

Academic Journal of Business, Administration, Law and Social Sciences Vol. 2 No. 1

March 2016

Amendments to the Law on Value Added Tax in Kosovo

LL. M. Simeana Beshi

University College “FAMA”

Dr. Sc. Safet Krasniqi

University of Prizren “Ukshin Hoti”

University College “FAMA”

Abstract

Main purpose of this paper is to explore and analyze the objectives and effects of amendments

in the Law on Value Added Tax (VAT) as part of the new fiscal package in Kosovo. This paper

is based on a quantitative analysis. Some of the methods used in this paperwork are: historical-

, descriptive-, and comparative method. It relies on facts and researches conducted by

international organizations, based on productive forces and on the development of economic

capacities in general, also a comparative overview of the fiscal policies applied in different

states. This paper presents also the challenges of Kosovo, towards EU, by harmonizing tax

legislation, fiscal policy and combating tax evasion.

Keywords: Fiscal Policy, Value Added Tax, Tax Rates.

Introduction

This paper aims to give an overview of the tax administration which is closely related

to Kosovo’s future, since this plan will depend on the social-, and economic

development and its perspective. The discussion of fiscal policy is focused in the role

of taxes in attracting FDI and a competitive and flexible tax system. Kosovo has

imposed the obligation of payment of taxes to the citizens, regulated not only by the

Constitution of Kosovo, but also the specific laws on the fiscal policy.

With the implementation of the new law on VAT, on one hand is intended the

facilitation of the economic situation of citizens and businesses, while on the other

hand additional budget revenues and combating tax evasion is foreseen.

The new legislation on VAT

Integral part of the new Fiscal Package, which started to be implemented from 1.9.2015,

is the new Law on Value Added Tax. This package brought many changes, but the

biggest change is precisely that of VAT. In essence, these changes are based on

estimates which aim to bring certain effects in the economic and social life of Kosovo.

Some of the main innovations of the new Law on Value Added Tax are:

· With the entry into force of the new law on VAT the certificate of VAT for the

purposes of Import/Export was canceled. Now there will be only a Certificate -

Declarative VAT for all those taxpayers who reach the limit of VAT registration

or voluntarily wish to register for VAT.