TIRANA, July 21 – VAT refunds, one of the key issues of concern for the business community in Albania, has been made easier, by giving enterprises the right to use refunds for the payment of other tax obligations in case of late refunds.
The draft law submitted by MPs Erion Braçe and Ervin Koçi was approved this week by the parliamentary economy committee.
Back in 2014, the government finalized a draft law on the value added tax, the most important tax to the state budget accounting for around 35 percent of total revenue and levied at a fixed 20 percent rate on almost every product and service, which has been in force starting 2015. The most important changes to the law included the insurance sector where the 20 percent VAT was lifted, a measure which is expected to reduce costs in the auto insurance dominated sector. Changes to the law also lifted exclusions of VAT on imports of iron and cement for the construction of hydropower plants and the supply of services in hydrocarbon exploration and development. The 10 percent VAT on medicines and health services was lifted in April 2014.
VAT refund for exporters was cut to 30 days and 60 days for other taxpayers.
Along with reference prices, the timely VAT refunds, is one of the top concerns for the business community.
