In Albania, VAT registration is mandatory once a business exceeds a specific turnover threshold or operates in activities that fall under VAT-regulated categories. The obligation applies to both Albanian and foreign businesses carrying out taxable transactions inside the country.
Registering at the right time ensures full compliance with tax law and prevents penalties.
VAT Threshold for Mandatory Registration
The general threshold for VAT registration in Albania is 10 million ALL in annual turnover. If your business exceeds this amount within a calendar year, you must register for VAT.
Even before reaching the threshold, a business is expected to register if it reasonably expects to surpass the limit in the near future. Early compliance is critical to avoid administrative issues or missed filings.
Activities That Trigger Immediate Registration
Certain business activities require VAT registration regardless of turnover. This includes:
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Import and export operations
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Digital services provided to clients in Albania
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Professional services in sectors with VAT obligations
Foreign entities that carry out taxable transactions locally may also be required to register or appoint a fiscal representative.
Voluntary Registration
Businesses below the VAT threshold may register voluntarily if they prefer to work with VAT-registered partners, issue proper tax invoices, or recover input VAT on business expenses.
Once registered, voluntary filers must follow the same monthly reporting and invoicing rules as any VAT-obligated company.
Registration Procedure
VAT registration is completed through the General Directorate of Taxes. The business must already be registered with the National Business Center (QKB) and have an active tax number (NIPT).
The application is submitted online and includes your business details, operational address, and appointment of a licensed accountant. Once approved, your VAT status becomes active, and you are required to submit declarations monthly.
VAT Rates and Filing Duties
The standard VAT rate in Albania is 20%, with reduced rates available for sectors like tourism and book publishing. All VAT-registered businesses must issue certified fiscal invoices, keep proper records, and file monthly VAT declarations even if no revenue was generated.
Failure to meet these obligations can lead to penalties, audits, or the suspension of business activity.