Small Businesses to Be Charged VAT

Small Businesses to Be Charged VAT

TIRANA, October 5

Small businesses in Albania will be charged VAT (Value Added Tax). This was confirmed by Prime Minister Edi Rama on Wednesday during the public consulting sessions on 2018 stage budget. He clearly said that all small businesses will be charged VAT, but only this. On the other hand, there will be no tax increase.“We will require the small business to join the fight against informality. All business subjects, small businesses included will be charged VAT. It is not true that there will be a tax increase for this group of subjects. The tax rate for small businesses was cut to zero and it will remain zero. Every small subject will behave in a structured way,” PM Rama said.
Previously, big businesses asked from the Prime Minister to charge VAT to small businesses.
By the end of 2015, the Albanian government decided to cut the tax rate for small business that had a turnover of Lek five million per year. Meanwhile, the tax rate was reduced to five percent for businesses that had an annual turnover of 5-8 million Lek. The tax rate for businesses that have a turnover higher than eight million is 15percent.

News Source/Photo Credit: Prime Minister’s Office, Monitor

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