Value Added Tax (TVSH - Tatimi mbi Vleren e Shtuar) in Albania
VAT in Albania is governed by Law No. 92/2014 on Value Added Tax and the electronic Fiscalization system:
- Standard TVSH Rate: Flat 20.0% on domestic supplies of goods, services, and customs imports.
- Reduced TVSH Rate (6.0%): Applies to authorized tourist accommodation (hotels and certified agro-tourism units), accommodation structures, books, and electric buses.
- Mandatory Registration Threshold: Businesses with annual gross turnover exceeding 10,000,000 ALL must register for VAT. (Voluntary registration permitted from 5,000,000 ALL).
- Electronic Fiscalization (Fiskalizimi): All B2B and B2C invoices must be generated electronically in real time with a QR code and NSLF/NIVF digital signature registered with the DPT central server.
- Zero-Rated (0%) Exports: Export of goods and international digital services provided to foreign businesses outside Albania.
Statutory Regulatory Framework: Compliant with Law No. 29/2023 on Income Tax, Labor Code of the Republic of Albania, Law No. 7703 on Social Insurance (ISSH), and regulatory instructions issued by the General Directorate of Taxes (DPT) and Energy Regulatory Authority (ERE).