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Automatic VAT refund for exporting persons and those persons under the customs procedure of inward processing

On 15.07.2021 in the Official Journal was published the Decision of the Council of Ministers no. 418, dated 08.07.2021 “For an amendment in the Decision no. 953, dated 29.12.2014, “On the implementing provisions of law no. 92/2014, “On value added tax in the Republic of Albania”, as amended, which enters into force immediately after publication in the Official Journal.

According to this Decision, the requests of VAT refund which are performed by taxable exporting persons and other taxable persons re-exporting non-Albanian goods under the inward processing procedure in the Republic of Albania, as defined in the Customs Code, are divided according to the categories mentioned below.

The first category includes taxable persons who re-export non-Albanian goods with zero risk under the Inward processing regime in the Republic of Albania, who will be reimbursed automatically within 30 (thirty) days from the date of submission of the request for VAT refund, must simultaneously meet the following criteria:

a) activity status “active”;

b) the value of exports made in the tax period (s) for refund required, is more than 70 (seventy) % of the total value of sales, including exports, verified by customs reports of exports in the system;

c) have export activity over 1 (one) year;

ç) have no unpaid obligations of social and health insurance contributions.

The second category includes taxable persons, whose value of exports, made in the tax period/s for which the refund is requested, is more than 50 (fifty)% to 70 (seventy)% of the value general sales. This category also includes exports and is reimbursed within 30 (thirty) days from the date of submission of the request for VAT refund, previously subjected to the risk analysis procedure which ends together with the audit within 30 (thirty) days from the date of submission of the request. Even if the control procedure is not completed on time, within 30 days from the date of submission of the request for reimbursement, VAT is reimbursed through the treasury system, with the exception of requests of taxable persons that result in activity status “Liabilities”, which will be mandatory reimbursed after the completion of the tax audit procedure. All other taxable persons who make exports, but who are not classified in the categories mentioned above, are reimbursed within 60 (sixty) days from the date of submission of the request for reimbursement, subject to the risk analysis procedure.

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