Albanian government has published the latest changes on VAT law for various services and subjects. According to the new law of VAT which was introduced at the Parliamentary Committee of Economy by Minister of Finances Shkelqim Cani, the following subjects/services are free from VAT: national postal service, health service and medicaments, educational service, insurances and reinsurances, financial services, buildings, lands and gambling are some of the services excluded by VAT.
During the presentation of these changes, Minister Cani declared that “Tax administration and businesses used to operate based on a law system compiled 20 years ago. The market and economy has changed and the interpretation or implementation of this law has since long time created the space for abuses and has contributed in the creation of an inhibitory climate for investors”.
The law also predicts a total cut of VAT for all supplies for merchandise exports and other international services similar to exports, for supplies of international organizations in Albania. Also, no VAT will be applied to diplomats, NATO, ect.
According to Ministry of Finances, the newness that come by this law is that it defines and treates in a detailed way all concepts on merchandise and services supply upon which VAT is applied, by avoiding uncertainity and confusion regarding this point.