Businesses want implementation of procedure for VAT owed to be credited back to a company through deleting the same amount of tax liability.
TIRANA, Feb. 13 – Albania’s highest tax official has told representatives of the country’s business community he has ordered officials across the country to reimburse the Value Added Tax to the qualified companies as soon as possible.
The issue has been a sore point between many businesses in Albania, and despite a new law to better regulate the refunds, some companies are still reporting delays.
General Tax Director Artur Papajani made the comments at a recent meeting with members of the American Chamber of Commerce in Albania, according the chamber’s official publication, The Advantage.
The idea to solve the problem faster was for businesses not having to pay taxes when they haven’t been refunded for the VAT collected on behalf of the state. This issue has now been regulated by law.
An article in the Law on Tax Procedures that states that if VAT is not credited back to a business, they do not have pay the same amount of tax liability that they owe in taxes, according the American Chamber of Commerce.
Although the law is now in effect, businesses say they continue to have to pay regular tax obligations, and no compensation for the VAT has been able to be applied as a tax credit.
The tax officials said during the meeting that the official guide of the Ministry of Finance will come out soon to officially regulate the relationship between the two factors.
On the 14th of every month, when companies pay their profit tax and social security contributions, there will be a compensation for all entities to which the state owes money for VAT crediting, according the tax officials.
This is a problem particularly felt by manufacturers, who continually have do deal with the fact that the VAT is not reimbursed.
“While Tirana textile and shoe manufacturers have benefited from a guide released by Mr. Papajani to urgently liquidate VAT owed to them, similar companies in Shkodra continue to face the same problem, which has been adding up, sometimes for years,” the American chamber’s publication said.
