For years, in Kosovo’s tax practice, the monthly carry-forward of excess VAT has been treated as a claim for tax credit. The same approach continues to be applied today, even though this practice is legally incorrect. As a result, this tax position has been considered subject to the three-year procedural limitation period provided for in…
In everyday practice, we are increasingly observing situations where citizens and businesses face freezing of funds/transactions by financial institutions, even though their financial actions are entirely legitimate. These cases are related to the way transactions are assessed by the financial monitoring system, which today operates on strict legal principles aimed at preventing money laundering and…
Kosovo has made significant strides in its efforts to establish an attractive and competitive tax system. The tax landscape in Kosovo is characterized by low tax rates making it a favourable destination for investors and businesses seeking to operate in the region. One of the most compelling aspects of the tax system in Kosovo is…
During a tax reassessment, who bears the burden of proving which party is right? Is it the taxpayer or the Tax Administration of Kosovo (TAK)? This fundamental question, which concerns the balance between administrative authority and individual rights, often has no straightforward answer in practice, as taxpayers are frequently required to prove their own “innocence.”…
In everyday practice, gifting shares is a frequently used mechanism for transferring ownership in a business entity, whether between family members, business partners, or other closely related persons. However, such transactions are often carried out without a thorough legal and tax analysis, potentially resulting in significant consequences for the parties involved. This article examines the…
On 7 February 2025, the Kosovo Court of Appeals upheld the judgment of the Basic Court in Prishtina, obliging the Tax Administration of Kosovo (TAK) to refund amounts unlawfully withheld as personal income tax from a blind person. The case arose when TAK imposed personal income tax on income received by a blind person, disregarding…
Is it fair that the Single Administrative Document (SAD), reassessed by Kosovo Customs and accepted for VAT and customs duties, is not accepted by the Tax Administration of Kosovo (TAK) for Corporate Income Tax (CIT) purposes? In practice, Kosovo Customs declares the supplier’s invoice invalid and reassesses the goods based on different values, while TAK…
Are you a non-resident taxpayer in Kosovo? Navigating tax compliance can be challenging, especially when dealing with registration requirements and fiscal representation. This guide offers clear insights into your obligations, the registration process, and the legal protections available to ensure compliance in Kosovo. Who qualifies as a non-resident taxpayer? You are considered a non-resident taxpayer…
The issue examined in this article concerns the manner in which the Tax Administration of Kosovo (TAK) calculates the costs of construction projects and the impact of this calculation method on the tax obligations of developers. According to recent practices, particularly those of the Large Taxpayers Department (LTD), TAK has begun imposing premature tax liabilities…
As part of the continuing misinterpretation of legal provisions by the Tax Administration of Kosovo (TAK), another evident issue concerns the taxation of non-business individuals who provide their properties for construction in exchange for a portion of the completed buildings. There are numerous cases in which TAK has imposed liens on the properties of these…