Albania: Albania changes its VAT legislation
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: Albania changes its VAT legislation


Dorina Asllani Ndreka

VAT is the most important tax in Albania. According to the fiscal indicators regarding the consolidated budget, VAT is expected to amount to 8.5% of GDP for the 2014 fiscal year. VAT is levied on all supplies of goods and services in Albania, and for all imports. The VAT rate in Albania was 20% for the majority of supplies of services and goods, and until now a reduced rate of 10% was levied on the supply of medications and medical services.

The Law on Valued Added Tax provides some specific goods and services that are exempted from VAT. Some of these exempted supplies include: financial services; supply and rental of land; granting, negotiating, administration and securing of money credits; bank transactions, money transfers, loans, cheques, with the exception of debt collection services; transactions dealing with money, bills, and other legal means of payment; transactions regarding shares, capital, bonds, securities, etc; administration of investment funds; non-profit organisations; supply of casinos, hippodromes and gambling; postal services and exports.

With the Law no.182/2013, dated December 28 2013, the Parliament adopted several changes regarding the VAT, which entered into force from January 1 2014.

In accordance with these changes, medicinal drugs and health services supplied by public or private medical institutions are no longer subject to 10% VAT, but are instead considered as exempted supply. The changes are not to be strictly applicable from the beginning of the new 2014 financial year, but will rather be effective as of April 1 2014, to give the Ministry of Finance the possibility to arrange the administration of the already existing supplies.

VAT refunding has been one of the less applicable legal rights regarding this tax, which was until now legally granted but practically denied to the taxpayers. To help both taxpayers and the law enforcement, the new law defines a simplified procedure and accelerated deadlines regarding refunding, with the scope of making it more applicable in practice. Starting from January 1 2014, the Fiscal Regional Directory is to control and approve as refundable the taxpayer's credit balance within 60 days of the taxpayer's application. The payment of the VAT refundable credit balance is performed by the treasury system, in accordance with the rules and procedures defined in the Guideline of the Ministry of Finances, which remains to be published.

Dorina Asllani Ndreka (

Eurofast Global, Tirana Office

Tel: +355 42 248 548


more across site & bottom lb ros

More from across our site

New requirements for advisers to inform clients of any relevant matters that might impact their relationship have raised concerns from a raft of professional bodies
The fallout from PwC China’s Evergrande audit has reportedly hit the firm hard; in other news, the US and Turkey look to reform their corporate tax rates
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
Gift this article