Institution > Small business corner > Questions – Answers

Questions – Answers

  1. When do the legal amendments on VAT for small business enter into force?
    The legal amendments on VAT for small business have entered into force on 01/04/2018.
  2. How to submit the VAT declaration?
    The VAT declaration shall be submitted electronically, via the e-Filing system.
  3. Should those entities that during 2017 exceeded a turnover of ALL 2,000,000 come to the Tax Authorities to register in the VAT tax liability?
    It is not necessary for the entities to come to the Tax Authorities to be registered for the VAT tax liability. Their registration is carried out automatically.
  4. When should the inventory for goods in stock be submitted for those taxpayers that during 2017 have exceeded the threshold of ALL 2,000,000?
    The inventory shall be submitted electronically by 30/04/2018 via the e-Filing system, i.e. from the electronic declaration account, as well as in the Regional Directorate where the taxpayer is registered, by attaching the copies of the purchase invoices.
  5. How is the inventory compiled on 31/03/2018?
    The inventory shall be compiled by specifying the list of goods in quantity and value, that are in stock on 31/03/2018 and that have been purchased with a VAT tax invoice in the last 12 tax periods, i.e. in the timeframe of 01/04/2017 – 31/03/2018.
  6. Will the annual turnover be taken into consideration for freelance professions?
    Transferring to the normal VAT regime for freelance professions is nothing related to the turnover of more than ALL 2,000,000.
  7. If I perform service provision activities for foreign clients and have exceeded the turnover of ALL 2,000,000, will I be transferred to the normal VAT regime?
    All taxpayers that have exceeded the turnover of ALL 2,000,000 for a calendar year, despite the activity that they perform, shall be transferred to the normal VAT regime.
  8. Which are the time periods for the declaration and payment of VAT for small business with an annual turnover of ALL 2,000,000 – 5,000,000?
    The period of VAT declaration is once every three months, on monthly basis, for e.g. on 14/07/2018 is the last deadline for VAT declaration for small business entities for: April, May and June 2018. Based on the books of purchases and sales, the taxpayer declares the VAT declaration electronically via e-Filing for each separate month. If a VAT declaration appears with VAT payment, then the taxpayer shall print the payment order and go to the bank to pay it. The last deadline of payment shall be the 14th of each trimester: 14/07/2018, 14/10/2018, 14/01/2019, 14/04/2019 and so on.
  9. Does a small business providing healthcare services fall under the VAT scheme?
    Despite that the economic activity in such case is exempted from VAT, if the business has exceeded the threshold of ALL 2,000,000, it shall be registered under VAT tax liability.
  10. Are insurance agents and brokers exempted from VAT?
    Insurance and reinsurance services, including the mediation services in insurances and reinsurances from insurance agents and brokers, shall be exempted from VAT.
  11. What should a sales agent do in case he only provides services abroad?
    If he exceeds the threshold of ALL 2,000,000, despite providing services outside the territory of the Republic of Albania, he shall be registered for VAT tax liability and all the services provided shall be taxed with a 0 (zero) VAT rate.
  12. Do I still continue to be a small business even though I will become a VAT entity?
    In such case you are a small business, but with VAT.
  13. Now that I have become a small business with VAT, am I subject to the Simplified Income Tax?
    No. The Simplified Income Tax is 0% up to the amount of ALL 5,000,000.