Albania VAT TVSH Calculator 2025 – Quickly Calculate Your VAT in Albania

Determining VAT Payers in Albania

In Albania, a ‘taxable person’ refers to any individual or entity that independently engages in economic activities, regardless of their legal structure, purpose, or location. The VAT registration threshold in Albania is an annual turnover of ALL 10 million. Businesses whose turnover is below this amount are not required to register for VAT, but voluntary registration is allowed.

VAT Obligations for Non-Resident Entities

For non-resident entities, VAT obligations depend on the place of supply. If the supplier is a non-taxable person and has a business or fixed establishment in Albania, the supply is considered taxable in Albania. For taxable persons, the place of service supply is Albania if the service recipient is established in the country.

Reduced VAT Rates in Albania

Albania applies a 6% reduced VAT rate to the following goods and services:

• Accommodation services
• Agritourism services
• Advertising via audio-visual media
• Book supply
• Electric engine buses for public transport with a capacity of nine or more people

A 10% reduced VAT rate is applied to agricultural inputs such as chemical fertilizers, pesticides, seeds, and seedlings.

Zero-Rated Goods and Services in Albania

Albania applies 0% VAT to the following:

• Exports
• Goods transported as personal luggage by travelers
• International transport
• Supply of gold to the Bank of Albania

VAT-Exempt Goods and Services

Certain goods and services are exempt from VAT in Albania. These include:

• Public postal services and incidental goods
• Hospital and medical care services
• Provision of medical services by health professionals
• Human organs, blood, and milk supply
• Educational services (including private tuition)
• Agricultural machines and veterinary services (except for pets)
• Supply of new, electric vehicles with zero mileage

How VAT is Calculated in Albania

In Albania, VAT is calculated by subtracting input VAT (the tax paid on purchases) from output VAT (the tax collected from sales). If input VAT exceeds output VAT, the difference is a VAT credit, which can be carried forward. Conversely, if output VAT exceeds input VAT, the difference must be paid to the state.

For businesses engaged in both taxable and VAT-exempt activities, only the VAT related to taxable activities can be claimed as input VAT. To calculate the correct amount of input VAT to claim, businesses must determine a VAT credit coefficient (the proportion of taxable activities).

VAT Reimbursement in Albania

If a taxable entity’s accumulated VAT credit exceeds ALL 400,000 and is carried forward for more than three consecutive months, they can apply for VAT reimbursement. Taxable entities can receive their reimbursement within 60 days after submitting their request. For exporters, VAT reimbursement approval must be granted or denied within 30 days.

Filing VAT Returns and Deadlines

All VAT-registered businesses in Albania are required to submit their VAT returns and sales/purchase books electronically. The deadlines for submission are as follows:

• VAT books must be submitted by the 10th day of the following month.
• VAT returns and payment for VAT liabilities must be filed by the 14th day of the following month.

Customs Duties in Albania: An Overview

Albania utilizes the Harmonized Code System for tariff classification to determine customs duties on goods. Customs duty rates range from 0% to 15%, depending on the type of goods being imported.

• Machinery and equipment imported for business use are generally exempt from customs duties (0% rate).
• Vehicles imported into Albania are also subject to 0% customs duties.

Excise Duties on Goods in Albania

Excise duties are taxes applied to specific goods consumed in Albania, whether imported or produced locally. Albania’s excise legislation is aligned with the EU Council Directive 2008/118/EC, which provides a framework for excise taxes on certain goods.

Products Subject to Excise Duty

The excise duty in Albania applies to the following product categories:

• Energy products (e.g., petroleum, gas)
• Tobacco products (e.g., tobacco, cigarettes)
• Alcoholic beverages (e.g., beer, wine, spirits)
• Other products (e.g., baked coffee, fireworks)

Excise duty is generally calculated per specific measurement units, such as per liter, kilogram, or piece, depending on the product.

Excise Duty Reimbursement

Certain entities are eligible for excise tax reimbursement, including:

• Goods used in processes approved by customs authorities.
• Exported goods that were subject to excise duty in Albania.
• Fuel used by companies building electric energy resources (over 5 MW).
• Fuel used in greenhouses for industrial and agri-industrial production.
• Biodiesel used in transportation.

The reimbursement process follows specific guidelines and predefined criteria to determine the amount that can be refunded.

Real Estate Tax in Albania

Entities owning real estate in Albania are subject to real estate tax. This tax varies based on the type and use of the property.

Real Estate Tax on Buildings

The real estate tax on buildings is calculated based on the property’s value and its intended use. The tax rates are as follows:

• Residential buildings: 0.05% tax rate
• Commercial buildings: 0.20% tax rate
• Unfinished construction sites: 30% tax on the entire construction area

Real Estate Tax on Agricultural Land

For agricultural land, the tax is imposed per hectare and varies depending on the district and land productivity.

Real Estate Tax on Non-Agricultural Land

For non-agricultural land, the tax is based on the square meter and differs depending on the location within Albania.

Stamp Duties and Notary Taxes in Albania

While there are no stamp duties on property sale contracts, notary taxes apply. These are similar to stamp duties and are set as follows:

• Notary tax on immovable properties: ALL 1,000
• Notary tax on movable properties: ALL 700

The responsibility for paying these notary taxes can be agreed upon between the seller and the buyer.

Registration Taxes for Business Entities

Registering a business entity in Albania requires a registration fee of ALL 120, although this fee can be waived to ALL 0 if the registration is done online.

Payroll-Related Taxes in Albania

Employers are required to withhold personal income tax (PIT) from the salaries of employees. Additionally, employers must contribute to social and health contributions (SHC) on behalf of their employees.

Social Contributions

Employers pay social contributions at a rate of 15% of the salary, calculated between the minimum and maximum salary ranges, which have been updated as follows:

• Minimum salary for SHC: ALL 40,000 (from April 2023)
• Maximum salary for SHC: ALL 176,416 (from April 2023)

Health Contributions

Health contributions are paid by employers at a rate of 1.7% of the total gross salary.