Value Added Tax (VAT)

Imports

VAT is assessed, applied and paid at the moment goods enter the Albanian custom territory. The VAT rate is 20% of the taxable value. The taxable value includes the purchase price plus transport and insurance payments made until the moment goods enter the Albanian custom territory. Tariffs, taxes and other export - import duties paid until this moment are also included in the taxable value.

Exempt from VAT

According to the Law No. 7928 dated 26.12.2007 “For VAT” as amended, the exempt from VAT is applied to:

• ƒƒ Import of goods placed in the transit regime
• ƒƒ Import of goods declared to fall under Temporary Allowance Regime
• ƒƒ Import of goods in active processing
• Import of goods or services relating to the performance of exploration and development phases of petroleum operations, carried out by contractors who work for these operations
• ƒƒ Import of live animals of origin, coming from different donors
• ƒƒ Import of goods coming from NATO
• ƒƒ Import of good of appliances that help the integration of people with disabilities in the everyday life

The customs Code foresees the exemption of the customs duties for the returning emigrants (persons that have lived in another country for a period of not less than 12 months continuously and are coming back to Albania).

Exports

Albanian exports are exempted from VAT (VAT rate 0%). The Export Declaration serves as proof of export. Export Declaration is designed according to the Unique Administrative Document (UAD) available from the Export Custom Office. Exporters can benefit from a VAT credit for purchases made on behalf of their exports. Export from the Republic of Albania is free, without any other restrictive measures, quotas, prohibitions or other tariff and non-tariff restrictions except specific cases. No export duties apply on Albanian exports.