Amendments and additions to the Decision “On implementing provisions of Law no. 92/2014, ‘On value added tax in the Republic of Albania’, as amended”

Official Bulletin no.2, dated 16 January 2017

On 11/01/2017, Decision of Council of Ministers no. 8 decided to make some amendments to decision no. 953, dated 29.12.2014 “On implementing provisions of Law no. 92/2014, ‘On value added tax in the Republic of Albania’, as amended”.

First, Article 5/1 is added after Article 5 which stipulates the right to choose the application of VAT to the supply of the building or parts of the building.  According to this Article the right of the taxpayer to exercise the option of considering the supply of a building or part thereof as a taxable supply at the standard rate of 20%. The right to choose is applied for buildings or parts of buildings which are supplied (sold) with the intended use for economic activity of buyers, registered subject, or for purposes of resale, but not for housing.

In addition, this Act adds Article 6/1 after Article 6, which stipulates the modalities and rules of exercising the right to choose the application of VAT to the supply of the building. According to this article, the taxable person exercises that right by submitting at the Regional Tax Directorate a written statement, stating that the supply of the building shall be treated as a taxable supply on the VAT rate of 20%. This statement, which formalizes the intention of the taxable person to apply the standard rate of VAT for the supply of the building, contains information on each building / premise, identification of the taxable person, the purchaser (name, Taxpayer Identification Number (NUIS), address etc. ) as well as information on the building permit and the intended use of the building.

Finally, Article is being added 7/1 after Article 7 which stipulates the right to deduct VAT when exercised the choice for the supply of buildings. Regarding the right to deduct VAT for each building or group of buildings that are involved to be treated as taxable or for each building or group of buildings which are supplied as exempt from VAT (zero-rated supplies), the supplier must identify separately the VAT deductions for each building or group of buildings.