Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 20% | 6% | zero-rated (0%) and exempt |
The local name for VAT in Albania is Tatimi mbi Vleren e Shtuar (TVSH).
There are basically 2 VAT rates in Albania:
- Standard VAT rate is 20%
- Reduced VAT rate is 6%
Recent developments
For more information about (recent) rate change developments in Albania, please click HERE.
Standard rate: 20%
This rate applies for all transactions that take place in Albania, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 6%
Examples of goods and services taxable at 6%
- Supplies of accommodation services by the accommodation facilities
- Supplies made within five-star accommodation structures of an internationally known trademark
- Supplies of accommodation and restaurant services, excluding beverages, by the certified structures operating in agritourism
- Supplies of advertising services by audiovisual media
- Supply of licensed public transport equipped with electric motors, with nine plus one places or more, by 31 December 2021 (starting from 1 January 2022, the rate of VAT rate for such supplies will be 10%)
- Supply of books of any type
Zero rate (0%)
Examples of goods and services taxable at 0%
- Export of goods
- Supply of goods for non – profit organizations
- The supply of services in the form of work engaged for imported goods to be developed in Albania and that are later on exported abroad.
- The supply of services directly linked to import or export of goods.
- Some type of operations linked to the international transport of goods and passengers;
- The supply of goods and services for international organizations and for their members;
- The supply of goods and services performed within diplomatic and consular relations;
- The supply of goods and services for the armed forces of other nations joining NATO;
- The supply with gold to the Bank of Albania.
Examples of exempt supplies of goods and services
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
Examples of exempt supplies of goods and services
- Hospital services and medical care
- Insurance and reinsurance services
- Supply and rent of land and buildings
- Financial services
- Postal services
- Education services
- Hydrocarbon exploration operations
- Printing and sale of publications
- Betting, lotteries and gambling
- Importation of machinery and equipment used for inward processing of goods or in the implementation of contracts of ALL50 million or more
- Importation of production machinery for small business
- Import of raw materials used for the manufacture of medicines, with the exception of dual-use substances, carried out by holders of production authorization
- Agricultural machinery
- Agricultural inputs, such as fertilizers, pesticides, seeds and seedlings
- Veterinary services, except veterinary services for domestic animals
- New vehicles with electric motor, zero km, that have not been previously registered for circulation in any other country
- Supply related to the construction/reconstruction process in the case of natural disasters upon receipt of the authorization by the General Tax Director
- Supply of services and goods directly to the constructor engaged with the building process in the case of natural disasters, when authorized by the General Tax Director
Source
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on December 2, 2023
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