Albania: Changes to tax legislation impacting hydrocarbon operations
International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX
Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Albania: Changes to tax legislation impacting hydrocarbon operations

lena.jpg

Erion Lena

A new tax legislation impacting companies operating in the hydrocarbons sector came into effect at the beginning of January 2014. Previously, Law no.7746 on Hydrocarbons, dated July 28 1993 defined VAT-exempt supplies in the hydrocarbon operations to include services supplied by contractors and subcontractors, certified as such by the National Agency of Natural Resources, relating to performance in the stages of both exploration and development of petroleum operations.

With the recent changes introduced with Law No. 182/2013, VAT-exempt supply is now set to include services provided by contractors and subcontractors, certified as such by the National Agency of Natural Resources, related to performance in the stages of the exploration only. The Minister of Finance and the Minister of Energy will jointly define the list of goods and services related with the exploration, and the excluding procedures.

Additionally, the law amendments stipulate that the import of goods or services relating to the performance of exploration and development phases of petroleum operations, carried out by contractors or subcontractors active in these operations – which were previously VAT-exempt – are no longer considered to be exempted.

Regarding the introduction of these services in the VAT scheme, the Ministry of Finance explains the reasoning by stating that the previously-applicable exemption had proven to be abused and should thus be removed. The tax administration will reimburse exporting oil companies for VAT paid on purchases.

Erion Lena (erion.lena@eurofast.eu)

Eurofast Global, Tirana Office

Tel: +355 69 533 7456

Website: www.eurofast.eu

more across site & bottom lb ros

More from across our site

Canada risks inflaming US trade relations in a presidential election year and increasing costs for consumers, according to local experts
Dudbridge, ForrestBrown director and head of its advisory practice, FB Consulting, tells ITR about the joys of tax advisory work, what he finds most exciting about the role and what makes tax cool
A UK court rejected Tills Plus’s claim for R&D tax credits due to a lack of technological advancement
View the Social Impact EMEA Awards 2024 shortlist and join us on September 12 at The Waldorf Hotel in London
The announcement is due to be made during the country’s Union Budget statement next week, according to reports
Around 30 roles are to be cut as the firm’s tax controversy and disputes practice will be incorporated into its tax division
The Labour Party has made ambitious commitments to close the UK’s ‘tax gap’, but how can they do it, and what will it mean for business?
The refreshed leadership team does not include Paddy Carney, who previously made headlines for her dual role on PwC Australia’s and PwC International’s boards
Nusetti, global tax head at pharmaceutical company Lupin, tells ITR about being a tax magician, military aspirations and what makes tax cool
The UK tax agency unsuccessfully argued that a software company was not entitled to R&D tax relief
Gift this article