Value Added Tax

This law determines the application of the Value Added Tax in the Republic of Albania.

The Value Added Tax (VAT) is a general tax on consumption of goods and services, proportional to their price, which is charged at each stage of production and distribution process without tax price.

The Value Added Tax is applied to all supplies of goods and services performed against payment within the territory of the Republic of Albania by a taxable person acting as such and on all imports of goods in the territory of the Republic of Albania.

In its component, it provides in details the key moments of the VAT implementation mechanism.

Thus the law gives clear definitions regarding the applicability of the tax, the country of supply, as of the goods, as well as the services. An important place occupies the detailed treatment of the internationalization of the supplies of goods and services from the viewpoint of the functioning of the VAT’s scheme.

The persons required by the law to register in order to keep their records current, to declare and pay VAT, occupy a significant part in the structure of this law.

Despite the liabilities, the law clearly provides for the right of each and every taxable person to benefit from the refund of VAT.

For the first time, the law addresses the special scheme of tax regimes of VAT applied in Albania.

This tax has been implemented in Albania since July 1996. The current Law No. 92/2014 dated 24.07.2014 "On Value Added Tax" was developed under the IPA 2007 Project "Support to the General Directorate of Taxes in Albania for the approximation of the national legislation with the
Acquis Communautaire.

Below you will find the law “On Value Added Tax” and the bylaws issued for its implementation.