Albania: VAT deferral for machinery and equipment imports in Albania

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Albania: VAT deferral for machinery and equipment imports in Albania

lena.jpg

Erion Lena

The Law no. 7928, dated April 27 1995 'On Value Added Tax', as amended, implemented a scheme of deferral and exemption from the payment of VAT. Based on paragraph 2.1 of article 26 of the Law no. 7928, for machinery and equipment imported by taxable persons, which is directly related to their economic activity, the scheme of postponing the payment of VAT for a period of up to 12 months applies, under which VAT is not payable to the Customs authorities at the time of import.

This scheme of VAT deferred payment applies to machinery and equipment imported by the taxable persons who are registered as taxpayers for VAT. The condition is that imports carried out are related to the economic activity of the taxable person, and that such economic activity depends on the particular machinery and equipment.

The taxable person benefiting from this scheme is liable to present to the Customs authority the documentation required, based on the tax legislation.

The taxable value of machinery and equipment imported also includes:

a) costs of transport and insurance and other costs involved in the importation of machinery and equipment, up to the moment of entry in Albania; and

b) fees, taxes and duties payable as a result of the export of machinery and equipment from countries from which they are exported, or payable as a result of their import, except the VAT amount.

The Customs authority, after determining the value of taxable machinery and equipment, with all its constituent elements, applies to this value the VAT rate, which is in force at the time of importation of machinery and equipment.

VAT calculated by the Customs authority is not paid by the taxable person at the time of clearance of imported machinery and equipment; rather it is paid within 12 months from the time of importation of machinery and equipment.

In cases where the investment development cycle, the start of production or the start of the delivery service is longer than 12 months, the Minister of Finance has the authority to extend the period for deferral VAT payment, depending on the investment development cycle defined by the relevant agreement or contract.

Erion Lena (erion.lena@eurofast.eu)

Eurofast Global, Tirana Office

Tel: +355 69 533 7456

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

The ruling is ‘well-structured’ in its references to the OECD TP guidelines, one expert says, while another argues it overlooks key technical issues
India also brokered its first-ever multilateral APA last year, the Central Board of Taxes announced
A global tax framework may not materialise anytime soon, but a common set of principles is becoming increasingly necessary, Rudolf Winkenius also tells ITR
Kingsley Napley’s claimants are arguing that taxing the provision of education breaches the European Convention on Human Rights
While pillar two can progress without the US, it won’t reach the same heights without American involvement, argues Renáta Bláhová, founding partner of BMB Partners Taxand
There are unanswered questions as to how foreign investors could reclaim money via tax credits, advisers suggested
Amid an ever-changing tax environment, India’s advisory market is bustling with competition ahead of the 2025 World Tax rankings and ITR Awards
The deal comes after PwC had accused Paul McNab of using confidential information; in other news, McDermott hired a new London tax head from a US rival
Looking at transfer pricing simplification is “obviously helpful”, but it should be done in line with current standards, a senior government figure reportedly said
The UK Government’s plans to close the tax gap via increased HM Revenue and Customs investment have failed to impress local tax advisers
Gift this article