Exports

Based on Article 57 of the Law No. 92/2014, dated July 24, 2014 “For the purpose of the value added tax in the Republic of Albania, as amended, the following supplies are treated as zero-rated VAT supplies:

• Supply of goods sent or transported outside the territory of the Republic of Albania. Exports of goods must be verified and documented with export customs documentation, as provided for in the relevant legislation.

Warning!
Goods transported by taxable persons from outside the territory of the Republic of Albania for use in equipping or supplying tourist ships, private aircraft, or any other means of transport used for private purposes are not eligible for the zero-rate VAT treatment. These goods are not subject to export procedures.

• The provision of non-Albanian goods processing services by the exporter, classified under the active processing regime (contract manufacturing) services, which add value to the processed goods intended for re-export.

Treatment at the 0% VAT rate is guaranteed for the processing service of non-Albanian goods under active processing regime in the invoice issued by the exporting operator, which is attached to the customs re-export declaration for these goods.

• The supply of services directly related to the importation of goods into Albania, the value of which, based on Article 44 of the law, is included in the taxable value of the imported goods, is taxed at the time of importation.

Such are the secondary expenses, such as packaging and transportation costs incurred up to the moment the goods enter the customs territory of the Republic of Albania, regardless of the mode of transport used.

Warning!
Excluded from these services are those services exempt from VAT under Articles 51 and 53 of the law when they form part of the taxable value on import.

• Export of goods outside the territory of the Republic of Albania by nonprofit organizations as part of their humanitarian and charitable activities outside Albania under special agreements. The VAT paid on the purchase of these goods, intended for export to fulfill their charitable purpose, as documented by the relevant tax invoice, is refundable.

Warning!
Organizations subject to the reimbursement procedure must not carry out any economic activities, even secondary ones. They must have a clearly benevolent and humanitarian purpose and distribute the goods they purchase free of charge.

Refund procedure

To carry out the reimbursement procedure for these organizations, they undergo the following procedure:

At the time of export, these organizations must submit their original purchase invoices to the tax authority conducting the export procedures. The type, quantity, and value of the exported goods must correspond to the type, quantity, and value of the goods purchased as shown on the original tax invoices for those goods in Albania.

After the export of goods for VAT refund has been completed, the nonprofit organization submits to the VAT Refund Directorate of the General Directorate of Taxes, where it is registered, the application for VAT refund and the following attached documentation:

• Notarized photocopies of the Nipt certificate;
• Notarized photocopies of the original purchase invoices;
• The export declaration, in which the organization seeking reimbursement must be the exporter of the goods.;
• A notarized copy of the specific agreement with the organization to which the goods are destined, which must be located outside Albania. The consignee (recipient) of the goods on the export declaration and the organization that is a party to the specific agreement must match.;
• A notarized copy of the form completed and stamped by the customs authority in accordance with the above procedure. The amount of VAT on the invoices for which VAT refund is requested must be the same as the amount of VAT shown on the form completed by the customs authority at the time of export, as evidenced by the customs export declaration.;
• A statement providing information on the account number to which the VAT will be refunded.

Source: General Directorate of Taxes.