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New VAT Law

Deloitte Albania explores the new VAT Law with the largest businesses in the country

The new VAT law harmonizes our legislation with the European Union standards.

The new VAT law harmonizes our legislation with the European Union standards.

As a response to high business interest with regards to the new VAT law and instruction, Deloitte Albania organized the first event in the market, after its entry into force, aiming to assist and inform the business community towards a more effective implementation of the law. 

The new VAT law no. 92/2014, which entered into force on 01.01.2015, was drafted with the assistance of the European Union (EU) under the Project IPA 2007 and aims to harmonize our tax legislation with the European one. This law and the relevant by-laws recently published (DCM for Implementing Provisions no. 953, dated 29.12.2014 and Instruction no. 6, dated 30.01.2015) brought fundamental changes, reconsidering almost every perspective and practice of the VAT rules applied so far. 

The new VAT Law and the corresponding VAT Instructions replace and literally revolutionize the Albanian VAT practice, introducing new definitions of taxable person, taxable supply and taxable basis, new place of supply rules and VAT exemptions. 


For this reason, Deloitte Albania is scheduling a series of events for the benefit of business community in the country. The first event, ‘Exploring the new VAT Law (towards the EU)’, was held at the premises of Tirana International Hotel on 12th of February. The event was attended by over 150 guests, representatives of the largest Albanian and international businesses in various fields such as banks, insurance companies, consumption businesses, telecommunication, transportation companies, oil and energy, international institutions, tax authorities and other public institutions. 

Deloitte Albania invited for the occasion of this event a special speaker, Mr. Pieter Wessel, Partner at Deloitte Romania and Indirect Tax Leader at Deloitte Central Europe, who explained the implementation of EU VAT Directive in European Union member states and shared relevant experience of countries in Central and Eastern Europe. Mr. Wessel further explained the underlying principles of this Directive, which are also the basis of our new legislation on VAT.

Mr. Olindo Shehu, Office Managing Partner and Tax and Legal Partner for Deloitte Albania and Kosovo, emphasized some of the main features of the new legislation. According to Mr. Shehu, it is particularly attractive and facilitating for foreign investors, especially those from EU member states that decide to invest in Albania. “These investors will be able to freely plan the purchase of goods and services beyond Albanian borders, being ensured that these transactions’ treatment from the VAT perspective will be significantly comparable to the treatment according to the EU Directive.” - further emphasized Mr. Shehu. 

Mr. Shehu explained that the new legislation brings numerous advantages for both Albanian and foreign companies operating in the country, as well as to the Albanian economy. “This legislation will entail a more uniform application of the VAT rules.” - said Mr. Shehu. – “It will reduce risks of misinterpretation and abuse, on the grounds that now, we can make reference to the solid practice of the EU states and to the decisions of the European Court of Justice (ECJ) related to the VAT.” – he added. Mr. Shehu explained that, even though Albania is not a member of the EU and it is not obliged to fully comply with the ECJ rulings, they consist in a precious basis of reference that is expected to be widely accepted by the tax authorities and courts in Albania. 

Ms. Iris Toto, Senior Manager at Deloitte Albania and specialist in the EU VAT Directive, illustrated practical cases and explained how the new legislation affects certain transactions in several industries. Her explanations were enriched by the concrete examples brought by Ms. Enkeleida Pipa, Director of Technical Team at the General Tax Directorate. Ms. Pipa delivered a presentation focusing on the main changes brought by the new law and instruction, with real examples and detailed explanations. 

Deloitte Albania will continue to organize events with the business community in response to their needs for explanations on a more accurate implementation and effective use of the new legislation. 

Deloitte Albania explores the new VAT Law with the largest businesses in the country

The new VAT law harmonizes our legislation with the European Union standards.

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