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The Instruction of the Ministry of Finance No. 15, dated 18/05/2017 “On some amendments to the Instruction No. 6, dated 30/01/2015 “On the Value Added Tax in the Republic of Albania”, as amended, has been published in the Official Journal No. 123, dated May 26th, 2017.
These changes shall enter into force upon publication in the Official Journal as below:
Firstly, the main telecommunication operators shall have the right to choose to apply the provision of prepaid cards, or calling time through tariff codes, or prepaid packages, by means of intermediate distributors/suppliers, by directly deducting in the invoice the value of intervention in the market (commission), for all intermediate distributors/suppliers.
Such an action was not provided for and allowed until today.
-In such case the main operators shall calculate and pay the VAT for the full value of the prepaid cards, or telecommunication tariff codes/tariff packages, that they supply to their distributors/intermediaries.
-The main operator shall directly deduct in the invoice the value of intervention into the market for all later suppliers, without affecting the calculated VAT, as above.
-The intermediate distributors/suppliers shall not be entitled to deduct the value of VAT invoiced by the main operators related to the supply carried out, as long as they are not entitled to apply VAT on later supplies carried out in the next stages.
-The intermediate distributors/suppliers shall issue a tax invoice without calculating VAT, whereby the price of such supply is equal to the final price (including VAT) for the final consumer, invoiced by the main operator at the time of supplying these products.
-In any invoice issued in the coming supplies by the intermediate distributors/suppliers, the value of intervention into the market of the next steps shall be deducted.
The main operator that chooses to apply such a manner of supply, shall previously deposit at the Regional Directorate of Taxes a written declaration, whereby he states the desired choice.
The main operator shall be obliged to carry out this manner of supply for all his intermediate distributors/suppliers and for a period not less than 12 consecutive years.
Moreover, if the main operator resigns from this manner of supply and documentation, then he should previously inform the Tax Authority.
The turnover of the intermediate distributor/supplier as per Article 119 of the Law on VAT, shall be calculated based on the total price that the buyer must pay (final consumer) regarding the abovementioned services.
Secondly, the Instruction also designates (an amendment done before by Decision of the Council of Ministers) the right of a supplier (the seller of the buildings) to choose the application of VAT for the supply of buildings, which pursuant to the Law on VAT are exempted.
Thirdly, despite the right to deduct the VAT related to the gasoline purchased, the taxable persons shall justify its consumption with the volume of the task carried out, mileage covered by the vehicles, norms of gasoline consumption per mileage or process performed, etc. In any case, these expenses must be actually done and justified as per the actions carried out for purposes of the economic activity, evidenced by means of the respective documentation, but not more than the norms defined in this Instruction”.
Fourthly, the condition that each purchase invoice should be more than ALL 10.000 to receive reimbursement for diplomats, international organizations, NATO, shall be removed.
Fifthly, the condition that the right of the taxable person to use tax invoices with a unique and particular serial number, printed by his registration system, is limited by the number of his clients, shall be removed.