Kosovo is a member of the World Customs Organization (WCO), the Central European Free Trade Agreement (CEFTA) and the Central Asian Interstate Aviation Organization (CAIAO). Duty-free are most imports from CEFTA countries. There is also a 10 percent customs duty for countries with which Kosovo does not have a free trade agreement. Essential goods are also subject to an eight percent VAT, and all other imported goods are subject to an 18 percent VAT. A Stabilization and Association Agreement (SAA) entered into force in April 2016, abolishing customs duties on more than 1,040 agricultural and 480 fishery imports from the EU. 

VAT law and system

Kosovo’s VAT law and system is based on the EU Directive for VAT (Directive 2006/112/EC and its subsequent amendments). Law No.05/L-037 ‘On Value Added Tax’ and the related sub-legal acts govern VAT legislation. The price, insurance cost, and freight cost of goods are assessed for VAT. In addition, some products are additionally taxed with an excise tax that can greatly increase the final price of goods to consumers. Petroleum, tobacco and alcohol are included in these.  The average VAT rate in Kosovo is 18%. However, some products, including essential products, will be subject to a lower VAT rate of **8%.

Depending on the item the excise tax is applied as a flat percentage rate of the value of the item or as a pre-determined amount. According to the tax exempts most agricultural inputs, chemical agents, wood products, health and medical devices, production-line expenses, raw materials, machinery used in production and IT equipment purchased.

In early 2009, Kosovo adopted a customs and excise code in line with European Union and World Customs Organisation standards.

Kosovo uses an integrated tariff schedule broken down into goods categories and applicable rates: Kosovo Customs

Import duties in Kosovo are low by comparison and, especially for goods from countries with free trade agreements, relatively low.

General import duties

Standard rate: Goods imported from countries outside free trade agreements are subject to a standard ad valorem duty rate of 10%.

Free Trade Agreements: Kosovo has free trade agreements with members of the Central European Free Trade Agreement (CEFTA) and the European Union (EU). Import duties may be reduced or nil with goods originating from these countries.

Excise duties

In addition to income tax, there are additional excise duties, such as on alcohol, tobacco and fuel, which can make such goods very expensive. Trade policy in Kosovo is regulated by Kosovo Customs, and Kosovo applies import duties. 

Preferential trade agreements

Kosovo is a member of the Central European Free Trade Agreement (CEFTA), and is allowed free duty-free trade with other member states of CEFTA. Much of Kosovo’s Stabilization and Association Agreement with the EU provides that imports from the EU are often eligible to enjoy preferential treatment.

Required documentation

Documents an importer will need include the commercial invoice, bill of lading, packing list, and certificate of origin (if they are seeking preferential duty rates). And any other certificates Kosovo’s standards agency requires.

Additional considerations

One should consider the following:

Non-tariff barriers

Import duties are relatively low, but there are other areas of non-tariff barriers: customs procedures, technical standards, and S and P regulations to consider.

Economic partnerships

In the future, Kosovo will actively promote its economic relations with other countries, and as a result, import duties and other trade barriers will be further reduced.

Maintaining a pipeline coming into Kosovo of products is often quite essential for any import nation.  Kosovo Customs provides an online tariff lookup for exact tariffs and specific items, and for specialized imports, you may consult a customs broker in Kosovo. In the case of import duties and taxes for your specifically imported goods, it is recommended you talk to a customs broker or Kosovo Customs Authority. If they can they will be able to give you information on tariffs, regulations, and documentation needed.