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# Albania VAT (TVSH), tax year 2026

> **Source-cited draft.** Drafted from the consolidated texts of Law No. 92/2014 on VAT (amended to Law No. 80/2025), Council of Ministers Decision (VKM) No. 953/2014 (amended to VKM No. 612/2026), Instruction No. 6/2015 (amended to Instruction No. 6/2025), Law No. 87/2019 on invoices and fiscalisation (amended to Law No. 83/2025) and Law No. 9920/2008 on tax procedures (amended to Law No. 79/2025), all published by the General Directorate of Taxes and read on 2026-10-23. No accountant has reviewed it. Do not file from it without review by a qualified Albanian professional.

Tax period: the calendar month (Law 92/2014 art. 107(2)). Currency: Albanian lek (ALL). Authority: Drejtoria e Përgjithshme e Tatimeve (General Directorate of Taxes), tatime.gov.al; returns go through e-Filing. Albania is not an EU member: there are no intra-Community supplies, no EU OSS and no EC Sales List. Article numbers below are Law 92/2014 unless another act is named.

See also: `albania-income-tax`, `al-corporate-tax`, `al-cross-border` (tax representative, withholding), `albania-payroll`, `albania-social-contributions`, `albania-tax-optimization`.

## Who this applies to

**Taxable person.** Anyone who independently carries on an economic activity, whatever its form, place, purpose or result (art. 3). VAT is charged on supplies of goods and services for consideration made in Albania by a taxable person acting as such, and on all imports of goods (art. 2).

**Registration threshold.** A resident taxable person whose turnover is below the minimum registration threshold is in the small business regime: no VAT is charged on sales and no input VAT is deducted (arts. 117, 121). The threshold is set by the Council of Ministers: **ALL 10,000,000 of turnover in a calendar year** (VKM 953/2014 art. 11(1), as amended by VKM 576/2020). The General Directorate of Taxes states the same figure: registration is mandatory for turnover above ALL 10 million.

**Turnover for the test** is all taxable supplies, including 0% exports and international transport (arts. 57, 59 to 62), measured excluding VAT (art. 119(1)). Sales of capital assets, incidental financial transactions and incidental real estate transactions are left out (art. 119(2)). Real estate and financial supplies that are the main business count, even though exempt (art. 119(3)). A new business pro-rates the threshold from its registration date to the year end (art. 119(4)).

**Crossing the threshold.** A small business whose turnover in any 12 consecutive months exceeds ALL 10,000,000 must apply to register within 15 days of the date of crossing. The date of crossing is the last day of the calendar month in which turnover went over the line (art. 122(1)). A person can go back to the small business regime if turnover in the last 12 calendar months falls below the threshold; deregistration then takes effect 12 months after the request (art. 122(2)).

**Voluntary registration.** A person below the threshold may opt into the normal VAT regime only if annual turnover is above **ALL 5,000,000** (VKM 953/2014 art. 11(1); art. 120(1)). Once in, the person must stay in for at least 2 calendar years. A later request to leave takes effect 6 months after it is filed (art. 120(2), (3)). ALL 5,000,000 is the floor for opting in, not a registration threshold.

**Zero threshold.** Notaries and state and private bailiffs register for VAT whatever their turnover, even if they also make exempt supplies (VKM 953/2014 art. 11(2), added by VKM 128/2022). The text says "professions such as" these two; no other profession is named.

**Who cannot use the small business regime**: incidental supplies of immovable property, activities in the agricultural producers' compensation scheme, and services supplied by a non-established taxable person where Albanian VAT is due (art. 118). Persons whose activity is tax evasion under Law 9920/2008 art. 116 are also excluded (art. 117(3)).

**Non-established suppliers.** A taxable person not established in Albania that makes supplies where Albanian VAT is due, other than services reverse-charged by an Albanian business customer, must register through a tax representative (arts. 87, 88, 91(2)). See Cross-border points.

**Every taxable person**, VAT-registered or not, must declare the start of its economic activity and register within 15 days of starting (art. 91(1)). The tax administration can register a person who should have registered (art. 91(4)).

**Special regimes** that this skill names but does not work through: travel agents (arts. 123 to 128), second-hand goods, art and antiques margin scheme (arts. 129 to 137), auctions (arts. 138 to 144), agricultural producers' flat-rate compensation at 10% (arts. 145 to 150), investment gold (arts. 151 to 155), and electricity sold through the Albanian Power Exchange, which is exempt, with the buyer reverse-charging VAT on purchases from the exchange until 31 December 2026 (arts. 155/1 to 155/3).

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| Standard rate | 20% | 2026 | Law 92/2014 art. 48, [tatime.gov.al consolidated text](https://tatime.gov.al/wp-content/uploads/2026/09/Ligji-Nr.-92-2014-Per-tatimin-mbi-vleren-e-shtuar-ne-Republiken-e-Shqiperise-i-ndryshuar.pdf) |
| Accommodation in accommodation structures under tourism law (room, and breakfast if included in the room price) | 6% | 2026 | Law 92/2014 art. 49(3); [VKM 953/2014 art. 11/1](https://tatime.gov.al/wp-content/uploads/2026/09/VKM-Nr.953-date-29.12.2014-i-ndryshuar.pdf) |
| Every service supplied inside a 5-star "special status" hotel or resort carrying an internationally recognised brand | 6% | 2026 | Law 92/2014 art. 49(4) |
| Certified agrotourism: accommodation and restaurant, except drinks | 6% | 2026 | Law 92/2014 art. 49(5) |
| Advertising by audiovisual media | 6% | 2026 | Law 92/2014 art. 49(6) |
| Licensed public passenger buses with 9+1 seats or more, electric motor only (supply of the vehicles) | 6% | 2026 | Law 92/2014 art. 49(7) |
| Books of every kind | 6% | 2026 | Law 92/2014 art. 49(8) |
| Construction works for sports infrastructure (state investment of sports clubs or federations, or private investment, as defined in sports law) | 6% | 2026 | Law 92/2014 art. 49(9) |
| Agricultural inputs: chemical fertilisers, pesticides, seeds and seedlings (not hormones in CN 2937), on the Council of Ministers list | 10% | 2026 | Law 92/2014 art. 49(10); VKM 953/2014 art. 8/1(1) and Annex 4 (the list) |
| Exports of goods, processing under inward processing for re-export, transport and ancillary services linked to imports or exports | 0% | 2026 | Law 92/2014 art. 57 |
| International transport of passengers; supplies for sea-going vessels and international aircraft | 0% | 2026 | Law 92/2014 art. 59 |
| Diplomatic and consular supplies, international organisations, donor-funded projects where the agreement bars paying tax, NATO forces | 0% | 2026 | Law 92/2014 art. 60 |
| Gold supplied to the Bank of Albania; intermediaries in 0% supplies | 0% | 2026 | Law 92/2014 arts. 61, 62 |
| Imports of goods | Same rate as a domestic sale of the same goods | 2026 | Law 92/2014 art. 50 |
| Mandatory registration threshold | Turnover above ALL 10,000,000 in a calendar year (12 consecutive months for the crossing test) | 2026 | VKM 953/2014 art. 11(1); Law 92/2014 art. 122; [tatime.gov.al, commercial companies](https://tatime.gov.al/entitete/?artikull=shoqerite-tregtare) |
| Voluntary registration floor | Annual turnover above ALL 5,000,000 | 2026 | VKM 953/2014 art. 11(1); Law 92/2014 art. 120 |
| Notaries, state and private bailiffs | Threshold zero | 2026 | VKM 953/2014 art. 11(2) |
| Minimum stay after voluntary registration | 2 calendar years | 2026 | Law 92/2014 art. 120(2) |
| Refund: minimum excess credit | Above ALL 400,000, carried forward 3 consecutive months (exporters: above ALL 400,000) | 2026 | Law 92/2014 art. 77(1), (3) |
| Refund: time limit for the administration | 60 days from the claim; 30 days for exporters | 2026 | Law 92/2014 art. 77(4); Law 9920/2008 art. 75/1(1) |
| Late input VAT deduction | Within 12 tax periods, counting the period the right arose | 2026 | Law 92/2014 art. 76(4) |
| Capital goods adjustment period | 5 years movable, 10 years immovable | 2026 | Law 92/2014 art. 80(3), (4) |

**Which 6% rule applies matters.** The art. 49(3) rate covers only the sleeping service (and breakfast sold inside the room price). Food, drinks and other services in the same hotel are at 20%, and the accommodation must be shown separately on the invoice (VKM 953/2014 art. 11/1(1)). A taxpayer that runs other activities as well must register a separate taxable person for the accommodation business to use the 6% rate (VKM 953/2014 art. 11/1(1), (2)). The art. 49(4) branded 5-star special-status hotels are the exception: every service inside them is at 6%.

**Exempt supplies (no VAT, no input deduction).** The main ones (arts. 51, 53):

- medicines, active implantable medical devices and implantable medical devices; health services by recognised institutions and licensed medical, paramedical and dental professionals;
- education by recognised public and private institutions, and private school or university teaching by teachers;
- insurance and reinsurance, including brokers and agents; granting, negotiating and managing credit; deposit, payment, transfer, currency and securities transactions (debt collection is taxable); management of investment funds;
- supply of buildings or parts of buildings and the land they stand on, other than the construction process itself; supply of undeveloped land;
- letting of immovable property, except lettings of buildings up to two months, hotel and holiday accommodation, parking and vehicle storage, fixed equipment and machinery, and safe deposit boxes (these are taxable);
- printed newspapers and magazines, printing of newspapers, and advertising in print media;
- betting, lotteries and games of chance; postal universal service; agricultural machinery on the Council of Ministers list (VKM 953/2014 art. 8(3), Annex 1/A); veterinary services except for pets; new electric-only vehicles never registered before (other than the art. 49(7) buses).

The Minister of Finance may allow an option to tax certain financial and real estate supplies (art. 55).

## The taxable base

**Taxable amount.** Everything the supplier receives or will receive from the customer or a third party for the supply, including subsidies linked directly to the price, excluding the VAT itself (art. 37). Other taxes and charges, and ancillary costs charged to the customer (commission, packing, transport, insurance), are included (art. 39(1)). Early payment discounts, discounts given at the time of supply, and disbursements recorded as suspense accounts are excluded (art. 40). On imports, the base is the customs value plus taxes and duties due on import other than VAT, and ancillary costs up to entry into Albania (art. 44).

**Tax point.** VAT arises when the goods or services are supplied (art. 32). An advance payment creates a tax point when it is received, and an invoice issued before supply creates one when issued (art. 33(3), (4)). Continuous supplies, including construction, are treated as made in the month the invoice is issued (art. 33(2)). Imports are taxed on import or on release from a suspensive regime (arts. 34, 35).

**Input VAT.** A registered person deducts VAT on purchases and imports used for taxable supplies, including 0% supplies (arts. 68 to 70). The deduction needs a valid invoice under arts. 96 to 105, a customs import document naming the person as importer, or the reverse charge formalities (art. 75). Since fiscalisation, an invoice is valid for tax only once it carries the NIVF fiscal number (Law 87/2019 art. 20(5)). Unused input VAT can still be claimed within 12 tax periods, counting the period the right arose (art. 76(4)).

**Blocked input VAT** (art. 74(1)):

- fuel, unless the business sells fuel or uses it for technological needs within ministerial norms;
- fuel of any kind for passenger cars (autoveturat);
- passenger cars and related services, unless the business resells cars or the cars are its only purpose (rental, taxi, ambulance);
- travel and per diem, hotel accommodation, recreation and entertainment, luxury and representation costs. Representation is also capped at the deductible limit in the income tax law (0.3% of annual revenue, see `al-corporate-tax`).

**Partial exemption.** A person with both taxable and exempt supplies deducts by a coefficient: taxable turnover over total turnover, excluding capital asset sales and incidental financial and real estate transactions (art. 72). The coefficient is set yearly, rounded up to the next whole percent, applied provisionally on the prior year's figures, and corrected in the first period of the next year. The provisional coefficient must be notified to the tax administration by 31 January, or by the first return in which it applies (art. 73).

**Capital goods.** Input VAT on capital goods is adjusted when their use changes between taxable and non-deductible activities: one fifth a year over 5 years for movable goods, one tenth a year over 10 years for immovable goods (art. 80).

**Bad debts.** VAT on an unpaid amount can be reduced once the debt is declared uncollectable by the courts, and not earlier than six months after the end of the period in which the VAT was charged. The seller issues an invoice marked "Borxh i keq" referencing the original invoice; the buyer reduces its input VAT by the same amount (art. 84).

**Excess credit** is carried forward to the next period (art. 76(2)) or refunded under art. 77 (see Deadlines and filing).

## Deadlines and filing

| What | When | Source |
|---|---|---|
| Declare start of activity and register | Within 15 days of starting | Law 92/2014 art. 91(1) |
| Register for VAT after crossing ALL 10,000,000 | Within 15 days of the last day of the month of crossing | Law 92/2014 art. 122(1) |
| Notify changes of name, address, activity | Within 15 days | Law 92/2014 art. 94 |
| Request deregistration | Within 15 days of the last taxable supply | Law 92/2014 art. 93 |
| Monthly VAT return | No later than 14 days after the end of the month | Law 92/2014 art. 107(1); Instruction 6/2015 art. 67(4) |
| Payment of VAT due | By the return deadline | Law 92/2014 art. 89 |
| VAT on imports | With customs duties, under the Customs Code | Law 92/2014 art. 90 |
| Self-invoice for services bought from a non-established supplier | No later than the 10th of the month after the service | Law 87/2019 arts. 7(2)(b), 8(3), 20(9), (10) |
| Fiscalise an import of goods (buyer) | Within 7 days of release for free circulation | Law 87/2019 art. 20(10) |
| Invoice for an advance payment | Immediately, and at the latest 72 hours after receipt | Law 87/2019 art. 8(4) |
| Periodic invoice for regular or continuous supplies | Monthly, by the 10th of the following month | Law 87/2019 art. 8(6) |
| Partial exemption coefficient notice | 31 January (or first return where it applies) | Law 92/2014 art. 73(4) |

**The return.** The tax administration pre-fills the monthly return from the electronic sales and purchase books (libri i shitjes, libri i blerjes) built from fiscalised invoices. The taxpayer checks it, corrects or completes it against its books, confirms it and submits it on e-Filing by the deadline (arts. 106(4), 109(2)). The return is filed electronically from the taxpayer's own account; if the deadline falls on a non-working day, it moves to the next working day (Law 9920/2008 art. 65(1), (3)). A registered person files every month, including nil months. Small business regime taxpayers do not file VAT returns but still issue fiscalised invoices (art. 110(1)).

**Invoicing and fiscalisation (Law 87/2019).** Every corporate and personal business income taxpayer and every VAT taxpayer must issue an invoice for every supply, whatever its turnover (Law 87/2019 arts. 4, 6). Each invoice is electronically signed and sent to the tax administration over the internet before it is given to the buyer. The administration returns a fiscal number (NIVF), and only then is the invoice valid for tax purposes (art. 20(1) to (5)). Cash sales get a printed fiscalised invoice handed over at the time of supply (art. 23(1)). Business to business invoices paid other than in cash, and all invoices to public bodies, must be issued, sent and received as e-invoices through the central invoice platform (arts. 24(1), 25(1), 26). Goods moved by transport need the e-invoice fiscalised before transport starts, with the printed QR code carried by the transporter (art. 24(4)). Invoices may be in any currency, but the total, the taxable value and the VAT must also be shown in lek at the Bank of Albania rate on the day of issue (art. 6(6)). Software, devices, business premises and operators must be registered in advance (Law 87/2019 arts. 14 to 16; Law 9920/2008 art. 122).

**Refunds.** A registered person can claim a refund of excess credit only if it has carried the excess forward for 3 consecutive months and the amount claimed is above ALL 400,000 (art. 77(1)). Exporters can claim once their excess is above ALL 400,000 (art. 77(3)). The claim goes on the form "Kërkesë për rimbursimin e TVSH-së" to the VAT Refund Directorate (Law 9920/2008 art. 75/1(1)). The administration decides within 60 days, or 30 days for exporters, and pays through the treasury within five days of approval; if it does not, the taxpayer may withhold payment of other taxes up to the claimed amount (Law 9920/2008 art. 75/1(1)). For exporters (VKM 953/2014 art. 10):

- exports above 70% of total sales in the claim period, active status, more than 1 year exporting and no unpaid social or health contributions: zero risk, refunded automatically within 30 days;
- exports above 50% up to 70% (or above 70% without all the other conditions): refunded within 30 days after risk analysis;

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