VAT on Accommodation Facilities Cut to 6%

VAT on Accommodation Facilities Cut to 6%

TIRANA, April 7

The value added tax (VAT) on holiday accommodation facilities in Albania was cut to six percent. The government decided to reduce this tax from 20 percent to six percent during its last meeting. The decision aims at encouraging the tourism industry, which during the last years turned into one of the major supporters of economic development and employment.

Revenues from tourism in 2016 reached the record of Euro 1.5 billion, the Bank of Albania confirmed.

In the meantime, the Institute of Statistics (INSTAT) confirmed that 4.7 million travellers visited Albania in 2016, which means 15 percent compared to 2015.

The decision was welcomed by the business and the association operating in this sector while Minister of Finances Arben Ahmetaj said that the cut of VAT will increase benefits to the state budget.

News Source: TCh

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