WORLD TRADE  
ORGANIZATION  S/C/N/449 
5 June 2008 
 (08-2651) 
Council for Trade in Services Original:   English 
  
NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE 
GENERAL AGREEMENT ON TRADE IN SERVICES 
  
 The following notification, dated 3 June 200 8, from the delegation of the Republic of 
Albania, is being circulated to the Members of the Council for Trade in Services.  
 
_______________ 
 
 
1. Member notifying: 
 Republic of Albania 
  
2. Notification under: 
 Article III, paragraph 3, of the General Agreement on Trade in Services 
 
3. Date of entry into force:  
Law No. 7928, dated 27 April 19 95 "On value-added tax" amended  
 Duration: 
 
 Indefinite 
 4. Agency responsible for enfo rcement of the measure: 
 Ministry of Finance, Directorate General of  Taxation and Directorate General of Customs. 
 
5. Description of the measure: 
This sub legal establishes the value added tax in  the Republic of Albania.  The Value Added 
Tax is payable:  
 
a. for all taxable supplies of goods and services realized against the payment by a taxable 
person, as part of his economic activity in the territory of the Republic of Albania. 
 
b. for all imports of goods in the territory of the Republic of Albania 
 c. The minimum limit of registration is 8 milli on leks (per calendar year) or any other 
amount defined by the Council of Ministers based on the item 5 of this article. 
 
All legal and physical persons involved in ex port or import activities are constrained to 
register in order to pay the VAT.  S/C/N/449 
Page 2  
 
  Any other entity such as individuals, central and local government, social, politic and 
international organizations, diplomatic missions , etc, which carry out import-export activities, 
regardless of the turnover are also constraine d to register. For any entity which carries out 
import-export activity, the customs operations will pr oceed after he submits the original or the 
notarized copy of the Certificate of the Identification Number for the Taxable Person (NIPT). 
 
The total turnover is calculated based on the total price paid by the buyer, inclusive also the 
tax and condemnation fees (fines). 
 
The VAT declaration and payment form is fille d in two copies and the taxable person submits 
it to the respective bank with which the GDT h as an agreement regarding the admission of 
VAT payments, within 14 days after the expiration of the tax period.  
  VAT is applied at 20% , unless otherwise settled by  law.  
 
 Reimbursements   
1. If the crediting of the taxation for a taxati on period is higher than the VAT applied for 
that period, the taxable person is entitled to bear  the remained sum as taxation 
crediting for the subsequent taxation peri od pursuant to the article 32.    
 
 2. A taxable person requests reimbursement  of the surplus of the taxation crediting 
when:  
   (a) The taxable person has borne a sum of the taxation crediting for 3 
consecutive months, pursuant to the point 1 of this article.  
 
  (b) the required reimbursement exceeds the amount of  400 000 ALL.    3. For the cases when in the financial agreem ents ratified by the People’s Assembly or 
in the agreements or grants approved by th e Council of Ministers, it is envisaged the 
non-use of foreign financial resources to pay taxes and duties, including or not the 
value added tax, the paid value added tax is reimbursed to the foreign financers from 
the tax administration within 45 days, according to the rules established by the 
Minister of Finances.   
 
- The exporters are entitled to request re imbursement when their surplus exceeds 
the amount of 400.000 (four hundred thousand) ALL.  
 - The tax bodies make the reimbursement of  the crediting surplus of VAT for this 
category of taxpayers within 30 days from the date of the presentation of the request.    
  Exempted supplies  
 The following operations are excluded from payment of VAT: 
 
- Land and buildings 
- The supply of the financial services such as:  
 (a) giving, negotiating and lo ans, credits, credit guarantees and any security, including 
administration of loans, credits or credit guarantees by the giver;  
  S/C/N/449 
 Page 3 
 
 
  (b) transactions concerning bank accounts, pa yments, transfers, debts, cheques and 
negotiable instruments, except the collection of debt;  
 (c) transactions concerning currency, ban knote and money which are legal payment 
instruments, except articles used only for collections;  
 
(ç) transactions concerning shares, financia l capitals, bonds and other securities, except 
supervision services;  
 (d) administration of investment funds;  
 
(dh) transactions concerning life insurance contracts, including re-insurance;   (e) transactions concerning administration of pension funds and obligatory health 
insurance.  
 
- The supply of gold from the Bank of Al bania and the second level banks and of 
banknotes and currencies from the Bank of Albania 
- Postal Services 
- Non-profit organizations – the supply of services from religious or philosophical 
organizations in view of spiritual well being 
- Diplomats etc.  
- Hydrocarbon Operations  
- Medicaments and medical equipment  
- The supplies of services of gambling, casinos and hippodromes 
 
The taxable value of supply is the total amount paid to that supply, unless otherwise settled by 
law no.7928, dated 24 April 1995. 
 
 The imported machinery and the equipment 
 
For the machinery and the equipment imported by the taxable persons in the meaning of this 
law, in support of their economic activity, irresp ective of its type, the scheme of the deferral 
of the VAT payment up to 12 months, is applicab le.  According to this scheme, the VAT is 
not paid at customs at the moment of import. 
 The mode of supply covered by this measure;  (3) commercial presen ce of the following: 
 
6. Members specifically affected, if any: 
 None 
 
7. Text available from: 
 Trade Policy Department, 
 Sector for the WTO Relatio ns and Economic Integration 
  
 Address : 
 Ministry of Economy, Trade and Energy 
 Blv. “Deshmoret e Kombit” Nr. 1001, Tirana, Albania  Tel: (++ 355 4) 222 245 ext.157  Fax : (++ 355 4) 223455  e-mail: pkastrati@mete.gov.al
 
 
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