The standard rate of the added value tax for goods and service supplies, applied as a percentage of the taxable value, is 20%.
Reduce rate is 10%:
- Supply of agricultural inputs, including chemical fertilisers, pesticides, seeds, and seedlings.
Reduce rate is 6%:
- Supply of books;
- Delivery of buses with an electric motor designed for use as public transport and with a capacity of more than 8 people.
- Export of gоods;
- Delivery of goods for non–profit organizations;
- The delivery of goods and services in the form of work engaged for imported goods to be developed in Albania and that are later on exported to other countries;
- Some activities related to the international delivery of goods and transportation of passengers;
- The delivery of goоds and services for an international company and for their members;
- Delivery of goods, within the framework of diplomatic and consular agreements;
- The delivery of goods and services for the armed forces of other nations joining North Atlantic Treaty Organization;
- Cooperation with the Bank of Albania, such as the supply of gold;
- As in many countries, this list includes supplies directly related to import and export.
A “foreign business” is a business that does not have a fixed office/branch in Albania.
No VAT registration threshold applies to taxable supplies made in Albania by a non-established business. A non-established business must register for VAT in Albania if it engages in any of the following supplies:
- Supply of goods situated in Albania at the time of supply;
- Import and export activities in Albania.
An entity registered as a VAT taxpayer has the right to deduct earlier paid amounts of VAT on purchased goods and services. At the same time, it should be taken into account that the purchased goods and services must be used for business purposes (for example, goods for resale), and not for personal consumption.
To deduct, you must have documents confirming the payment. Such as tax invoice, a customs declaration for import.