On addressing Non-Profit Organisations for VAT purposes

The General Directorate of Taxes would like to inform on the procedures regarding the registration or de-registration from the VAT tax liability for Non-Profit Organizations, as well as on the unification of actions and attitudes to address them.

Pursuant to Article 3 of the Law No. 92/2014 “On VAT in the Republic of Albania”, as amended, shall not be considered a taxable person or registered under the VAT tax liability, every non-profit organisation that receives funds from subscriptions, if any, or funds, grants, donations received for the purposes of the non-profit organization activity, pursuant to the law on non-profit organisations, unless such organisation receives payments due to its economic activity. Moreover, the NPOs that forecast to generate from their secondary economic activity a turnover smaller than ALL 2.000.000, pursuant to Article 117 of the Law No. 92/2014 “On VAT in the Republic of Albania”, as amended, shall not be registered under the VAT tax liability.

Any NPO that apart from its main activity exercises a secondary economic activity and generates a turnover of more than ALL 2.000.000 (two million) in a calendar year, shall be obliged by law to be registered under the VAT tax liability, even though it conducts activities exempted by the law or possesses an authorisation to be exempted from VAT payment.  

The de-registration of NPOs from the VAT tax liability might happen for several reasons, like the following:

• Have been erroneously registered under this tax liability;
• Do not exercise economic activities anymore;
• The turnover generated from the secondary economic secondary activity for 12 consecutive monthly periods, does not exceed the amount of ALL 2.000.000 million and there is an assumption that the turnover generated by this activity annually will be lower to this value.

The GDT would like to highlight that the Regional Directorates of Taxes will continuously monitor every NPO de-registered from the VAT tax liability. In case of further information or unclarities, the interested entities might visit the Taxpayers’ Service offices at the respective RDTs.