In the Law No. 92/2014, dated July 24, 2014 “For the value-added tax in the Republic of Albania,” as amended, it is provided that,

Excluded from VAT are the actual supplies for school, university, vocational training, and retraining, including the provision of services or goods closely related to this instruction.

In addition, they must be education and teaching services at all levels, The other condition for their exemption is that the services be provided by educational institutions recognized as such, regardless of whether they are educational services or services and goods closely related to them.

Exceptional services

Services offered by institutions providing training courses, qualification courses, other special or professional courses, are not included as exempt services, through which participants do not receive continuous training that, upon completion, is accompanied by a diploma valid for recognition as a profession (trade, specialization), but are services (courses, etc.) through which the participant acquires or further develops their knowledge in a specific or various professional fields.

Supplies for implementing the exemption

For the application of the exemption, the following supplies are considered the provision of services for the education of children and young people, school or university teaching, vocational training and retraining:

1. the provision of teaching services for the implementation of curricula and educational programs by higher education institutions, both undergraduate and postgraduate, recognized as such by the competent state authority;
2. the provision of educational teaching services for the implementation of curricula and programs at various school and preschool levels (basic education; general secondary and vocational education; special education; kindergartens);
3. Provision of educational teaching services for the implementation of vocational education and retraining programs.;
4. the provision of educational services provided by non-public supplementary educational institutions, where instruction and education are offered in specific subjects and specialties related to acquiring knowledge in subjects included in the curriculum (e.g. foreign language courses, mathematics, physics, singing, etc.), approved by the competent state authority.

Supply of goods and services closely related to teaching.

When they constitute a necessary and inseparable complement to teaching, the supply (sale) of teaching materials to pupils and students (photocopies, etc.) is exempt from VAT.

Similarly, the printing or photocopying service provided by universities for printing essays and diploma theses is exempt from VAT, provided that:

1. to make these prints available to the students of these institutions for their study needs;
2. They should be produced in a limited number of copies without the need to use commercial management methods, which could give them a competitive character.

State-subsidized centers

State-funded student treatment centers, which operate specifically for this purpose by providing dormitories or cafeterias to students, the provision of lodging and meals when offered to students or pupils, is exempt from VAT, as a service connected to and necessary for the educational service. These centers must in every case prove that the service they provide was offered to students and not to third parties, upon recommendation of the public university. Otherwise, the service they provide is taxable with VAT.

Also, courses or special lessons privately provided by teachers are exempt from VAT when they offer services related to school or university teaching for subjects that are part of these curricula and are taken by students. (e.g., math courses, foreign languages, physics, etc.).

Source: General Directorate of Taxes.