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On the amendments to the Law “On VAT”; fiscal facilities in the tourism sector

The General Directorate of Taxes would like to inform all taxpayers that in the Official Journal No. 111 the amendments to the Law No. 40/2018, dated 09/07/2018 have been published for an addendum to the Law No. 92/2014 “On Value Added Tax in the Republic of Albania”, as amended.

The legal amendments are expected to enter into force of January 1st, 2019 and aim to incentivise and develop the accommodation activities certified as “agritourism”. More specifically, Article 49 shall have the following paragraph 5 added which stipulates that:

“For the facilities that conduct accommodation activities certified as “agritourism”, pursuant to the effective legislation in the area of tourism, the reduced tax rate of 6% of the value added tax shall be applied for the provision of the accommodation and restaurant service, apart from drinks. The taxable person that applies the reduced rate of 6% Value Added Tax shall be a person registered with a tax ID No./NUIS only under the accommodation activity certified as “agritourism”.

Such amendments are a follow up to the fiscal reliefs that the Albanian Government is undertaking to attract domestic and foreign investment, but also to give more space to one of the most relevant sectors of the Albanian economy such as tourism.