Council of Ministers’ Decision No. 822, dated 28.10.2026, has been published in the Official Gazette. The Decision provides for several amendments to 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”.
- Reduction of the minimum VAT registration threshold.
The minimum threshold for mandatory VAT registration is reduced from ALL 10 million to ALL 5 million in annual turnover.
Impact on Businesses:
Businesses generating annual turnover between ALL 5 million and ALL 10 million will become subject to mandatory VAT registration. Consequently, they will be required to adjust their invoicing systems, declare VAT and fulfil the relevant administrative and tax obligations.
- Changes to the references to the VAT rate applicable to the leasing and supply of buildings.
The specific references to the 20% VAT rate are removed from the provisions governing the right to opt for VAT taxation of the leasing of buildings, the supply of buildings or parts thereof, as well as the procedures for exercising this right.
Impact on Businesses:
Entities engaged in the leasing or supply of buildings, where they opt for VAT taxation, will be required to refer to the rate provided for under the VAT Law in force, rather than relying on the fixed 20% rate previously stipulated in the implementing provisions.
- Changes to the references to the VAT rate applicable to accommodation services.
For accommodation services provided by accommodation establishments, the Decision provides that the reduced VAT rate shall be the rate stipulated in Article 49 of the VAT Law. For this purpose, the specific references to the 6% and 20% rates are removed from the implementing provisions.
Impact on Businesses:
Hotels and other accommodation establishments must apply the VAT rate stipulated in Article 49 of the VAT Law, according to the relevant category of service. Consequently, businesses should take into consideration the legislative changes that will be in force as of 1 January 2027 and adjust their invoicing systems accordingly.
- OTHER PROPOSALS FOR VAT CHANGES UNDER PUBLIC CONSULTATION.
In addition to the changes approved under Decision No. 822, the following proposals remain under public consultation:
– Increasing the standard VAT rate from 20% to 21%.
– Applying a 6% VAT rate to 54 basic food products.
– Increasing the VAT rate applicable to tourist accommodation services from 6% to 10%, with the exception of agritourism.
These changes have not yet been finally approved and may be subject to further changes during the legislative review process.
Entry into force: The Decision was published in the Official Gazette on 29.10.2026 and shall take effect as of 1 January 2027.
