GOVERNMENT DECREE 128/2022, amendments to the VAT implementing regulations

On March 2, 2022, the Council of Ministers approved Decree No. 128, dated March 2, 2022, bringing three simultaneous changes to the implementing regulations of the VAT law, Decree No. 953, dated March 29.12.2014: raising the VAT exemption threshold for the import of investment machinery, confirming the 10% rate for agricultural inputs, and establishing a zero registration threshold for certain professions, such as notaries and court-appointed bailiffs.

From our daily work we see that many professionals and small businesses don't know that certain activities are required to register for VAT from the very first lek of turnover, with no minimum threshold, unlike the general rule that most businesses are familiar with.

Read also: VAT exemption for investments exceeding 500,000,000 lek. Authorization, and The VAT Law No. 92/2014: The text, amendments, and what is in effect today., for the full picture on this tax.

Zero registration fee for notaries and bailiffs

Decree No. 128/2022 added a new point to Article 11 of Decree No. 953/2014. For taxable persons exercising professions such as notary, state or private judicial bailiff, the minimum registration threshold for VAT is zero, regardless of annual turnover. These professionals are always considered taxable persons for VAT purposes, even when they simultaneously carry out activities exempt from this tax.

Why this matters for these professions

A notary or bailiff who has just begun operations, without having to meet any turnover threshold as is the case with other businesses, is required to register for VAT from the very first day of practicing the profession. Failure to comply with this obligation carries the risk of sanctions from the very start of operations.

VAT rate of 10% for agricultural inputs

Decree 128/2022 confirmed that the reduced VAT rate of 10% applies to a specific list of agricultural inputs, chemical fertilizers, pesticides, seed, and seedlings, with the exception of hormones classified under NCM code 2937. The full list of categories and their corresponding codes is found in Annex 4 of Decree No. 953/2014.

New threshold for the exemption of machine imports

By the same decision, the threshold value of the self-financed investment contract required to qualify for the VAT exemption on the import of machinery and equipment not intended for sale was raised from 50,000,000 (fifty million) to 500,000,000 (five hundred million) lekë. In practice, investments valued below 500 million lekë no longer benefit from this exemption as of March 2022. The conditions, documentation, and full authorization procedure are covered in our dedicated guide above.

Why does it matter today?

If you practice a liberal profession such as a notary or judicial bailiff, VAT registration is not something you can postpone until your turnover grows; it must be done from the start. If you are in agriculture or supply agricultural inputs, Always verify whether your specific product is included in Annex 4. And if you're planning a major investment in imported machinery, first check whether your contract value exceeds the current threshold of 500 million lekë before assuming you qualify for the exemption.

How we handle this with our clients

When a client is engaged in a profession with special registration rules, or is planning an investment that may benefit from a tax exemption, we first verify the applicable legal framework before proceeding, so that the registration or exemption application is accurate from the very first step.

Frequently asked questions

Do I have to register for VAT if I'm a notary with low income?

Yes. For professions such as notaries or judicial bailiffs, the VAT registration threshold is zero, regardless of annual turnover.

Which agricultural inputs qualify for the 10% VAT rate?

Chemical fertilizers, pesticides, seeds and seedlings, excluding hormones under NKM code 2937. The full list is in Annex 4 of Decree No. 953/2014.