The Tax Administration of Kosovo (TAK) has begun incorrectly and unfairly applying the new Law on Tax Administration and Procedures, which entered into force on 12 January 2024. Although this law limits the period for submitting tax refund and credit claims to three years, this limitation should not apply to periods preceding the entry into force of the law. By misinterpreting the law, TAK is causing significant financial harm to taxpayers who are legally entitled to refunds under the previous legislation.
The previous law, which remained in force until 12 January 2024, allowed a period of six years for submitting tax refund or credit claims. By reducing this period to three years for claims relating to periods before the new law entered into force, TAK is undermining taxpayers’ previously acquired rights. This constitutes a clear violation of the principle of non-retroactivity and the principle of legal certainty that legislation must guarantee.
Article 30, paragraph 3, of the repealed law provided:
“A claim for a credit or refund of an overpayment of any type of tax may be submitted within six (6) years from the date on which the tax was paid. The procedure for applying for a tax refund shall be regulated by a sub-legal act.”
Article 26 of the new law provides:
“A claim for a credit or refund of an overpayment of any type of tax may be submitted within three (3) years from the date on which the tax was paid or the right to deduction arose.”
The provision of Article 26, which limits the refund period to three years, even if correctly applied by TAK, violates the principle of proportionality, as taxpayers are granted only three years, while Article 16 allows TAK six years to assess tax returns.
For this reason, the Ombudsperson has referred this matter to the Constitutional Court, requesting a review of the constitutionality of this provision. Despite this significant constitutional challenge, TAK continues to apply the provision incorrectly, causing unjustified financial losses to taxpayers and undermining their legal rights.
If TAK fails to correct this incorrect application of the law, which unfortunately seems unlikely, taxpayers have every right to challenge TAK’s actions before the courts. The Tax Administration should serve as an example of fairness and integrity, rather than an institution that violates the rights of citizens and businesses that bear the burden of financing the state through taxation.
Taxpayers’ rights continue to be violated, and the courts remain their only hope.
Author: Florin Lata
