AmCham: VAT refunds, arbitrariness remain unsettled issues

TIRANA, Feb. 5 – Delays in VAT refunds and repeated inspections by the tax administration are the two key concerns for the American Chamber of Commerce in Albania. In a meeting with Finance Minister Ridvan Bode and General Tax Director Gazmir Spahija, AmCham representatives reiterated their unfulfilled requests even to the highest tax authorities. Addressing participants, Henry Jardine, the Deputy Chief of Mission for the U.S. Embassy in Albania, warned difficulty experienced by current American businesses to Albania could discourage other U.S companies from coming to Albania where they bring employment and innovation.
American Chamber representatives also called for greater transparency and stability in tax policies and the re-establishment of dialogue between government and the business community through the Tax Council.
Finance Minister Bode assured the Chamber’s concerns and recommendations will be given a priority and assured Chamber representatives the new value added tax will be discussed in detail with the business community before receiving its Ok in Parliament. In an earlier meeting with AmCham representatives, Prime Minister Sali Berisha admitted some of the Chamber’s concerns over arbitrariness by tax inspectors and problems with value added tax (VAT) refunds.
Representatives of the American Chamber of Commerce reiterated their concerns over arbitrariness by tax inspectors, VAT refunds, lack of dialogue with government and being excluded from decision-making when laws are drafted.
Albania business community represented by the American Chamber of Commerce say reference price also remain a key issue in relations with customs officials, demanding more updated and realistic reference prices.
The American Chamber of Commerce in Albania, representing over 200 members from a diverse list of industries has recently warned of a severe campaign by tax inspectors with repeated and unjustified controls is hampering the business life in Albania.
Chamber representatives say a severe tax office campaign has mounted wherein tax inspectors are implementing new interpenetrations of the tax law, including large fines for past activity already covered by previous inspections. “There is unprofessional behavior of tax official whose mandate seems to collect fines regardless of the business tax payments being proper according to existing law. Repeated and unjustified controls have hampered the business life. Previous tax controls always found to be wrong by inspectors. Inspectors frequently change interpretation and application of tax laws. Some inspectors are looking and relooking at business records back from 2006. This entire situation is far from the promise to create a stable climate for the business or a welcoming atmosphere for investors and especially foreign ones,” say AmCham representatives.