Changes to the VAT registration threshold and liberal professions

Recently, it has been published. VKM No. 576, dated 07.22.2020, For certain amendments to Articles 10/1 and 11 of Government Decree No. 953, concerning the implementing provisions of the VAT law. The amendments consist of raising the turnover threshold for VAT tax liability registration from 2 million Lek to 10 million Lek. Also removed are the previous provisions requiring self-employed professionals and agricultural producers to register for the VAT regime. Also of interest is the allowance for voluntary registration under VAT liability, provided that its turnover exceeds 5 million Lek. Below are the changes to Decree No. 953 of December 29, 2014, with the previous text, before the latest amendments, and the amendments themselves.

“Decision

Read also: How to register for and deregister from VAT.

No. 576, dated July 22, 2020

For certain amendments to Decision No. 953, dated December 29, 2014, of

To the Council of Ministers, “For the Implementing Provisions of Law No.

92/2014, ‘ON VALUE ADDED TAX IN THE REPUBLIC OF

’Of Albania,” changed

In support of Article 100 of the Constitution and Article 159 of Law No. 92/2014 “On Value Added Tax in the Republic of Albania,” as amended, and at the proposal of the Minister of Finance and Economy, the Council of Ministers

Amendments to Decision No. 953/2014

SET:

In decision no. 953, dated December 29, 2014, The following amendments are made to the Council of Ministers' Regulation, as amended:

Article 10/1 (Amended)

Deadline for filing the declaration and summary registers for the category of taxable persons with annual turnover of two to five million lek.

In accordance with Article 107 of the law, taxable persons who realize an annual turnover exceeding the minimum registration threshold for VAT, as defined in paragraph 1 of Article 11 of this decision, but not more than 5 million lek, submit the VAT return on a monthly basis, by the 14th day of the first month following the end of each quarter of the calendar year. Also, in accordance with Article 109 of the law, this category of taxable persons submits the VAT return along with summary registers, namely the book of purchases and the book of sales, on a monthly basis, by the 10th day of the first month following the end of each quarter of the calendar year. The above provisions do not apply to taxable persons for whom the minimum registration threshold for value-added tax is zero, regardless of their annual turnover. (Initial)

RevokedChanged).

Article 11

Setting the minimum registration threshold for value-added tax (VAT)

1. In accordance with Article 117 of the Law, the minimum registration threshold for value-added tax is turnover of 2,000,000 (two million) lekë in a calendar year, except in the cases specified in paragraphs 2 and 3 of this Article. (Initial).

New limit of 10 million lek

“1. In implementation of Article 117 of the Law, the minimum registration threshold for value-added tax is turnover of 10,000,000 (ten million) lekë in a calendar year. The taxable person has the right to opt to apply the standard VAT regime, in accordance with the provisions of Article 120 of the Law, if annual turnover exceeds 5,000,000 (five million) lekë.” (Amended).

2. The minimum registration threshold for VAT for taxable persons providing services in economic activities, according to professions such as: lawyer, notary, specialist doctor, dentist, specialist dentist, pharmacist, nurse, veterinarian, architect, engineer, medical laboratory specialist, draftsman, economist, agronomist, registered public accountant, certified accountant, and property appraiser, regardless of their annual turnover, is zero. All of these are taxable persons, registered for VAT, even if they carry out exempt activities under the law. (Repealed effective January 1, 2021 by Government Decree No. 576, dated July 22, 2020, published in the Official Gazette No. 139, dated July 29, 2020.) (Beginner). …

Limit for agricultural producers

2. Repealed (Amended)

3. For agricultural producers to whom the special compensation scheme regime applies and who carry on economic activity as individual farmers, the minimum registration threshold for value-added tax is turnover of 5,000,000 (five million) lek in a calendar year. Agricultural producers to whom the special compensation scheme regime of farmers, but who conduct their economic activity within the framework of an agricultural enterprise organized as an agricultural cooperative society (SHBB), are exempt from the above limit for the special compensation scheme, provided that this SHBB carries out only activities of selling its members' agricultural products to taxpayers who are not part of the compensation scheme. In this case, the taxable buyer issues a tax invoice only to the seller, the agricultural cooperation society, while the latter does not issue a tax invoice, in accordance with the principles of this scheme for farmer members of the agricultural cooperation society. If the agricultural cooperation society, in addition to sales under the special regime of the farmers' compensation scheme, also carries out other activities, it registers for the standard VAT regime. (Initial).

3. Repealed (Amended)

Note: In color that red Changes have been noted and the final text is after the changes. Download here Updated VKM 953. Source: Official Gazette.