Business organization seeks removal of VAT from reimbursable activities

TIRANA, Aug. 20 – The Albanian Chamber of Commerce and Industry plans to propose several changes to the current fiscal legislation in Albania. Among others, one of the most important proposals would be the removal of VAT, the value added tax, or TVSH as it is known locally, when it is used in an activity that is refunded to businesses.
Nikolin Jaka, the head of ACCI, was quoted by the Albanian Telegraphic Agency saying that new amendments will be proposed to all current laws in a draft fiscal package for year 2015, which is to be submitted to the Ministry of Finance for review.
“One of the laws we intend to change, in partnership with the government, is the law on VAT and the removal of VAT scheme on activities that are reimbursed. There should be no VAT when it is refunded via legal procedures,” Jaka said.
Another proposal involves the application of income tax, which needs to be no more than 10 per cent for businesses with an annual turnaround up to 8 million lek (56,460, $76.700). In addition, more incentives have been proposed in the sector of agriculture and tourism.
Jaka also asked that the Department of Tax Appeals and the Attorney of Taxpayers, both part of the General Directorate of Taxation, become part of the Ministry of Finance, instead.
Meanwhile, the National Chamber of the Clothing Manufacturers, by surveying its member entities, has announced that around 16 percent of companies are satisfied with the legal reimbursement of VAT arrears, newly created, while 14 percent of them admit they did not apply to reimburse legal amounts for 2014.