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The right to deduction of VAT refunded for the agricultural manufacturers

The right to have refunded VAT deducted, for agricultural producers, that benefit from the scheme

The right of VAT deduction paid to the farmer from a purchaser, taxable person, shall arise and be applied as per the definitions of the law.

The compensation that the purchaser, a taxable person, has paid to the seller, an agricultural producer, is the deductible VAT for the purchasing taxable person and shall be declared in the tax period when the invoice has been issued, as per the date.

The invoice shall contain and be filled in with all the required data according to the defined sections. The purchasing taxable person, in every invoice issued shall write down “Self-invoicing of the VAT as per the regime for farmer’s compensation”.

If the invoice does not contain complete and accurate data, and if it does not contain the note “Self-invoicing of the VAT as per the regime for farmer’s compensation”, the purchasing taxable person shall be entitled to not credit the compensation reflected in the later and shall be obliged to pay the penalty, pursuant to Article 128, for an irregular tax invoice in line with the effective law “On tax procedures in the Republic of Albania”.

The purchasing taxable person shall not be entitled to credit the compensation of 20% reflected in the issued tax invoice pursuant to this article, if he fails to prove the compensation of the farmer through liquidation of the invoice value from his bank account to the bank account of the farmer, or if such liquidation of the invoice has not been carried out via Albanian Mail service.

The VAT refunded as per this scheme shall not be recognized as deductible to the purchaser for products purchased from farmers which get damaged, perished, thus, becoming unusable to him.

The purchasing taxable person, in order to be entitled to a deduction of the VAT refund rate reflected in the tax invoice issued as per this article, for transactions exceeding ALL 30,000, shall be obliged to liquidate the value of invoice through the Albanian Mail service or through the bank if the transaction value does not exceed the amount of ALL 150,000 and via his bank account to the farmer’s bank account for a transaction whose value is larger than ALL 150,000, as determined in Article 59 of the Law “On tax procedures in the Republic of Albania”.

For transactions, that according to the total amount of invoice reach to ALL 30,000, cash payment shall be certified with the respective accounting documents for documenting payments, bearing in mind that within the same day and with the same farmer, no more than one transaction shall be allowed to be performed up to this amount.

The purchasing taxable person, that exports goods purchased from farmers as per the rules determined in this instruction, in order to have VAT refunded, shall be subject to the rules determined in Article 10 of the Decision of the Council of Ministers No. 953, dated 29/12/2014 “On the implementing provisions of the Law “On Value Added Tax”.

The purchasing taxable persons, that are characterized with zero risk as per the criteria of the Decision of the Council of Ministers, shall have the VAT refunded automatically within 30 days upon the date of submitting the request.