Albania VAT compliance changes

Albania has further harmonised its VAT Code with the EU VAT Directive. Major changes include:

1. A new VAT registration threshold will be set; currently all businesses must register prior to their first taxable supply
2. VAT credits (where sales VAT is less than input VAT suffered on purchases) will be refunded within 60 days
3. The Albanian VAT rate is set at 20% on most supplies
4. The following supplies are exempt: exports; medicines, digital advertising; and books and print supplies
5. VAT exempt status is to be eliminated no the following supplies: agricultural machinery; supplies to the hydropower industry