When deductible VAT exceeds collected VAT, a credit surplus arises. It is automatically carried forward to the next period, and if it remains for three consecutive months and exceeds 400,000 lek, a refund can be requested. The refund period is 60 days, and 30 days for exporters.
This page covers refund conditions, the calculation of the surplus across three periods, the treatment of exporters, deadlines, suspension cases, practical steps, and the consequences when the claimed surplus is lower than what was declared.
Read also: How VAT works: collected, deductible, and liability.
A surplus arises whenever VAT-inclusive purchases exceed VAT-inclusive sales. This is not an anomaly; it is a normal situation in some well-known cases.
✔ The exporter sells at a zero rate and buys domestically at 20%, so he collects zero and deducts everything.
✔ The hotel, the agritourism business, and the bookstore sell at 61% and buy at 201%, so the difference in rates creates a recurring surplus.
✔ A business that invests, purchases equipment, builds or replenishes inventory creates a surplus during investment periods.
✔ A seasonal business buys before the season and sells during it, so the purchase months show a surplus.
The surplus is not lost. It is carried over to the next period and deducted from its liability. A refund is the alternative when the surplus is not consumed and the business needs the money.
Read also: Reduced rates and their effect on the surplus.
| Category | Condition | Reimbursement period |
|---|---|---|
| General taxpayer | A credit balance for three consecutive months and over 400,000 lek. | sixty days |
| Exporter | Credit balance over 400,000 lek | thirty days |
The two conditions for the general taxpayer are cumulative. The surplus must remain for three consecutive periods and must simultaneously exceed 400,000 lek. A large surplus in a single month that is consumed in the following month does not entitle the taxpayer to the right.
A business has these three consecutive periods. In March, VAT collected 400,000 lek, VAT deductible 900,000 lek, resulting in a period surplus of 500,000 lek. In April, collected 500,000 lek, deductible 800,000 lek, resulting in a period surplus of 300,000 lek and a cumulative surplus of 800,000 lek. In May, collected 600,000 lek, deductible 700,000 lek, resulting in a period surplus of 100,000 lek and a cumulative surplus of 900,000 lek. In the three periods, no payment obligation arose. The surplus has remained for three consecutive months and exceeds 400,000 lekë, so a refund of 900,000 lekë may be requested.
The exporter does not wait three periods. For him, the only requirement is a value above 400,000 lek, and the refund term is 30 days, which is half the general term. The reason is simple. His activity generates a structural surplus because he sells at zero margin.
A producer exports goods worth 6,000,000 lek at the zero rate, so the VAT collected is zero. Domestic purchases of raw materials and services amount to 4,000,000 lek excluding VAT, so 800,000 lek of VAT is deductible. No tax liability arises, the credit surplus is 800,000 lek, and since it exceeds 400,000 lek, a refund is requested within 30 days.
Read also: Export, import, and customs regimes.
Reimbursement isn't always the best option. When the business expects to return to a positive obligation within one or two periods, carryforward consumes the surplus itself, with no paperwork, no waiting, and no oversight.
| Situation | Practical solution |
|---|---|
| Small surplus created by a one-time purchase. | Carrying |
| Repeated surplus from the business structure, such as exports or the 6% rate. | Refund |
| Large surplus after an investment when liquidity is tight. | Refund |
| A growing business that is expected to turn profitable within two months. | Carrying |
Requesting a refund initiates a verification process. This is not a reason to give up a right; it's a reason to submit a proper file the first time.
✔ Check that the surplus meets the requirement of three consecutive periods and an amount exceeding 400,000 lekë.
✔ Reconcile the purchase ledger with the actual invoices, because any invoice without VAT registration or issued under the wrong name will be excluded from the deduction.
✔ Make sure that all purchase invoices are on the business's NIPT.
✔ For export, ensure that the customs documentation matches the invoices and the sales book.
✔ Check the allocation of purchases when there are exempt transactions, because a partial discount changes the amount claimed.
✔ Submit the request via e-Filing, together with the surplus statement for the relevant periods.
✔ Keep the invoice and payment file ready, because the verification requires the document, not an explanation.
✔ Follow the deadline: 60 days or 30 days for the exporter, and keep the request letter dated.
Refund is suspended during the criminal investigation for offenses provided for in Articles 144(a) and 180 of the Penal Code, pursuant to the Tax Procedure Law. This is a measure related to the investigation; it is not a decision on the merits of the right, so the matter is being handled with legal counsel and the request remains in effect.
Furthermore, verification may reduce the amount claimed when the deductible VAT portion is not supported by documentation. In the event that the excess of the amount claimed is reduced, a 20% penalty on the difference is applied, pursuant to Article 115 of the Tax Procedure Law.
Attention. A claim filled with invoices for everything, in the hope that some of it will get through, costs twice as much. You lose the discount that doesn't hold and incur a 20% penalty on the difference. The reimbursement claim is submitted only on the amount retained by the documents.
Read also: Tax audit, your rights and appeal.
When a creditor's surplus remains for three consecutive months and exceeds 400,000 lek. For the exporter, the condition applies only to the amount above 400,000 lek.
60 days for the general taxpayer and 30 days for the exporter.
The difference arises when the period's deductible VAT is greater than the VAT collected. It is carried forward to the next period and deducted from the liability.
It is not lost. It is carried forward and applied against obligations in subsequent periods. Reimbursement is optional, not a condition for avoiding loss.
It depends on how quickly it's expected to be consumed. If the business turns into a positive obligation within one or two periods, carrying it forward is simpler. If liquidity is tight and the surplus meets the conditions, redemption makes sense.
The request triggers document verification. Therefore, the purchase ledger reconciliation and invoice regularization must be completed before submission, not after the file is requested.
The reduction of the requested surplus is subject to a 20% penalty on the difference. That is why only the amount supported by documentation is required.
For exempt supplies, the right to a deduction does not arise, so no refundable surplus is created on those purchases. For the taxable portion of the activity, deductions and refunds operate as normal.
It is pursued by written notice and, depending on the circumstances, by an administrative appeal. Send us the date of the request and the communications, and we will proceed to the next step.