Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.
Kosovo is a member of the Central European Free Trade Agreement (CEFTA) and the World Customs Organization. Most imports from CEFTA countries are duty free. For countries that Kosovo does not have a free trade agreement with, there is a 10 percent customs duty. There is also an eight percent VAT on essential goods and an 18 percent VAT on all other imported goods. Since April 2016, a Stabilization and Association Agreement (SAA) has been in effect, which eliminates customs duties on over 1,044 agricultural and 487 fishery imports from the EU. Under the same agreement, customs tariffs on industrial imports will be phased out gradually over a period of 10 years, with complete phase-out set to occur in 2026.
The VAT law and system in Kosovo is based on the EU Directive for VAT (Directive 2006/112/EC and its subsequent amendments). VAT legislation is regulated by Law No.05/L-037 ‘On Value Added Tax’ and the corresponding sub-legal acts. VAT is assessed on the price, insurance cost, and freight cost of the goods. Certain products are also subject to an additional excise tax that can significantly increase the final price of goods to consumers. These include petroleum, tobacco, and alcohol. The excise tax is applied as a flat percentage rate of the value of the item or as a pre-determined amount depending on the item. Information on Kosovo’s applicable excise taxes can be found in the Official Gazette – Law No. 03/L-220. Most agricultural inputs, chemical agents, wood products, health and medical devices, production-line expenses, raw materials, machinery used in production, and IT equipment purchases are exempt from the tax.
Kosovo adopted a Customs and Excise Code in compliance with European Union and World Customs Organization standards in early 2009.
Kosovo uses an integrated tariff schedule broken down into goods categories and applicable rates: Kosovo Customs.
Detailed information on the SAA between Kosovo and the EU is available at: European Council - (SAA) Signed between the EU and Kosovo.