TIRANA, July 23
Albania will raise its Value Added Tax registration threshold from Lek 2 million to Lek 10 million from 1 January 2021. The verdict was adopted on Wednesday during the latest meeting of the Council of Ministers. Hence, if the taxable turnover of a business or entity will cross the new VAT threshold, the subject will have to register for VAT.
According to Monitor magazine, over 46,000 businesses declared an annual turnover below Lek 10 million during 2019. The VAT collected from these businesses was estimated at Lek 3.4 billion in 2019, or 2.9 percent of the total VAT collected in the country.
The current VAT registration threshold sits at Lek 2 million. It was adopted two years ago when the government decided to lower the VAT threshold from Lek 5 million to Lek 2 million causing concern among small businesses.
Source: PM’s Office