Includes information on average tariff rates and types that U.S. firms should be aware of when exporting to the market.
Last Published: 2/26/2019

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.  In April 2016, Kosovo implemented a Stabilization and Association Agreement (SAA), which lifted customs duties on over 1044 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.

VAT is assessed on the cost, insurance, and freight of the goods.  Certain products are also subject to an additional excise tax.  These include petroleum, tobacco, vehicles, 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.  This tax can significantly increase the final price of the good for consumers.  In 2014, a law was enacted to expand to the list of VAT-exempt goods, mostly agricultural inputs, chemical agents, wood products, health and medical devices, and some medicines.  In 2015, production-line expenses, raw materials, machinery used in production, and IT equipment purchases also became exempted from the tax.

Kosovo adopted a Customs and Excise Code in compliance with European Union and World Customs Organization standards in early 2009: Official Gazette - Law NO. 04. 

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. 

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