- The VAT Law is Law No. 92/2014, dated July 24, 2014, effective January 1, 2015. It has 161 articles, 12 chapters, and 3 annexes.
- It repealed Law No. 7928 of April 27, 1995, so any reference to the old VAT law is no longer valid.
- To date, eight laws and one regulatory act have been amended. The table below lists them all, including the Official Gazette number.
- The threshold of 10,000,000 lek is not in the law. Article 117 explicitly states that the limit is set by a decision of the Council of Ministers.
- The standard rate of 20% is in Article 48. The reduced rates are in Article 49, and that article has been amended more than any other article of this law.
The Law on VAT in Albania is Law No. 92/2014, dated July 24, 2014, “On Value Added Tax in the Republic of Albania,” as amended. It was promulgated by Decree No. 8672 of August 11, 2014, published in the Official Gazette No. 128 of August 13, 2014, and entered into force on January 1, 2015.
This page does not explain how VAT works. It provides the act itself: where to find the text, how it is structured, which acts have amended it by number and by gazette, and what the actual figures contained within it are. The practical explanation is kept… our VAT page.
We call it by two names because that's what the clients request. “VAT Law” and “Law No. 92/2014” are the same act. When someone tells you “according to the old law,” ask which one they mean, because the 1995 law has been repealed for eleven years.
Read also: How to register for and deregister from VAT
What the VAT law covers and what it repealed
Article 1 defines VAT as a general tax on the consumption of goods and services, proportional to their price, which is charged at each stage of production and distribution. The law has been partially aligned with European Union Directive 2006/112/EC, which explains why its structure follows the European model rather than that of the previous Albanian law.
Article 160 repeals Law No. 7928 of April 27, 1995, “On Value Added Tax,” together with all the secondary acts issued in its implementation. Therefore, the guidelines from 1995 to 2014 are no longer applicable, even if they still circulate as files.
Article 161 provides that it shall enter into force on January 1, 2015, with one exception. Section 4 of Chapter XI entered into force 15 days after its publication, i.e., in August 2014.
How the law is structured: 161 articles in 12 chapters.
When someone quotes a section to you, the chapter immediately tells you what it's about. This saves time, because section numbers aren't memorable.
| Head | What does it regulate? |
|---|---|
| I | Objective and scope of application |
| Second | Taxable Persons |
| three | Taxable transactions |
| Fourth | Transaction supply location |
| V | The emergence of taxation and demandability |
| six | Taxable Amount |
| Seven | Tax Rates |
| Eighth | Exemptions, zero-rated supplies, exports |
| Ninth | The right to deduct and its adjustment |
| X | Obligations of Taxable Persons |
| eleven | Special Schemes |
| twelfth | Transitional and final provisions |
The three annexes are often overlooked, but they contain the lists that determine the specific treatment. Annex I lists the activities carried out by public entities, and Annex III lists the agricultural production and agricultural service activities that fall under the farmer scheme.
Which acts have changed the VAT law?
This is the part that cannot be found assembled anywhere. The table below is extracted from the change notes within the consolidated text, section by section, and each entry bears the number of the Official Gazette in which it was published.
| Act | Publication and entry into force |
|---|---|
| Law No. 92/2014, dated July 24, 2014, the basic act | Official Gazette No. 128, dated August 13, 2014. Decree No. 8672, dated August 11, 2014. Effective January 1, 2015. |
| Law No. 71/2017, April 27, 2017 | Official Gazette No. 113, dated May 22, 2017. Effective 15 days after publication. |
| Law No. 107/2017, date 30.11.2017 | Official Gazette No. 222, dated December 19, 2017. Effective January 1, 2018. |
| Law No. 40/2018, July 9, 2018 | Official Gazette No. 111, dated July 30, 2018. Effective January 1, 2019. |
| Law No. 96/2018, December 3, 2018 | Official Gazette No. 187, dated December 28, 2018. Effective January 1, 2019. |
| Normative Act No. 4, date 11/30/2019 | Official Gazette No. 161, dated November 30, 2019. Effective immediately. Adopted by Law No. 78/2019, Official Gazette No. 171, dated December 16, 2019. |
| Law No. 85/2019, December 18, 2019 | Official Gazette No. 184, dated December 31, 2019. |
| Law No. 64/2020, date 14.5.2020 | Official Gazette No. 118, dated June 24, 2020. |
| Law No. 123/2020 | Official Gazette No. 197, dated November 12, 2020. Effective January 1, 2021. |
Two changes to this list directly affect daily work. Law No. 85/2019 introduced the VAT return that is automatically generated by the administration based on the purchase and sales register, thus shifting from declaration to confirmation. Law No. 107/2017 amended Article 117, i.e., the small business regime itself.
How far is the text you find with us consolidated?
This must be stated openly, because without it a legal text becomes dangerous. The consolidated copy we maintain is that of the General Directorate of Taxation and includes amendments up to Law No. 123/2020. Any changes after 2020 are not incorporated in it.
The clearest example is the 10% standard for agricultural inputs, namely fertilizers, pesticides, seeds, and seedlings. That regulation is in effect today, but in this copy of Article 49 it is still not included. The same applies to the amendments introduced by Law No. 80/2025 to that same article. Therefore, the practical rule is simple.
Use the text for the structure, for definitions, and for clauses that haven't been moved. For the specific figure you will include in a statement or contract, always verify it. Rates in effect today. We keep that page verified and review it whenever an act changes.
The rates contained in the VAT law itself.
What is the standard norm and where is it written?
Article 48 provides a single sentence. The standard rate of value-added tax for supplies of goods and services is 20 percent. Article 50 adds that the rate applicable to imports is the one that applies domestically to the sale of the same goods, meaning imports do not have their own rate.
Who benefits from the 6% rate under Article 49?
Article 49 is the most amended article in the entire law, with five amending acts. In our copy it sets the rate at 6% for six cases.
- Accommodation in accommodation establishments, according to the categories of tourism legislation.
- Any service within the “Five-Star Hotel/Resort with Special Status” structures bearing an internationally recognized trademark.
- Broadcasting advertisements by audiovisual media.
- Public passenger transport vehicles with nine or more seats, powered solely by an electric motor.
- Books of every kind.
- Work on sports infrastructure.
Note something that often goes unnoticed. Paragraph 3 of the article states that the conditions, criteria, and procedures are determined by a decision of the Council of Ministers. Thus, the law sets the standard, while the condition that must be met is provided by another act.
Why can't you find the threshold of 10,000,000 lekë in the law?
This is the question we hear most often when someone opens the text for the first time. The person looks for the threshold registration code for VAT and can't find it, so they think they've downloaded the wrong version.
The figure is not there because the law does not provide for it. Article 117, paragraph 2, states literally that the minimum registration threshold for VAT, the cases of exemption, and the minimum threshold for specific categories are determined by a decision of the Council of Ministers. The current decision is Government Decision No. 953/2014, as amended, and the threshold today is 10,000,000 lek annual turnover, with voluntary registration possible above 5,000,000 lek.
The practical consequence is important. The threshold can be changed without touching the law at all, because all it takes is a government decision. This has happened several times, and it's why a law text downloaded two years ago doesn't protect you.
Frequently Asked Questions
| Article | What does it regulate? |
|---|---|
| 48 | Standard rate, 20 percent |
| 49 | Reduced rates and their conditions |
| 51 | Exemptions for activities of general interest, including health services and medicines |
| 77 | Refund of credit excess |
| 106 | VAT declaration and its automatic creation |
| 107 | Filing deadline and tax period |
| 117 | Small business regime and registration threshold |
| 118 | Activities for which the small business regime does not apply |
| 160 | Repeal of Law No. 7928/1995 |
| 161 | Entry into force |
Calculated example: when the right to reimbursement arises.
Article 77 imposes two conditions simultaneously. The taxable person must have carried forward a deductible VAT surplus for three consecutive months, and the amount claimed must exceed 400,000 lek.
Consider a company with a credit surplus of 150,000 lek in January, 180,000 lek in February, and 200,000 lek in March. The surplus has been carried over for three consecutive months and in March exceeds 400,000 lekë, so both conditions are met and the application can be submitted. If it had been 120,000 lekë in March, the first condition would have been met and the second not, so it would have to wait until the next month.
Exporters have a more lenient rule. They can request a refund when the surplus exceeds 400,000 lek, without having to wait for the quarterly carry-forward. The details of the procedure and the deadlines are provided. Our reimbursement page.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
Send me free notificationsRead also: When VAT is declared and how the books are filled out
Read also: Does it make sense to register for VAT if you're not required to?
Frequently asked questions
What is the VAT law in effect today?
Law No. 92/2014 of July 24, 2014, as amended. It is the only VAT law in force and has been applied since January 1, 2015.
Where can I download the full text?
From the button above, you can open the consolidated copy of the General Directorate of Taxes. The official version of each amending act is available in the relevant Official Gazette, under the numbers shown in the table.
How many times has the law been changed?
Eight laws and one regulatory act appear as amendments within the consolidated text up to Law No. 123/2020. After 2020 there have been further changes, including Law No. 80/2025 in Article 49, which have not been incorporated into that version.
Why doesn't standard 10% appear in Article 49?
Because it was added after the consolidation of the circulating copy. The 10% rate for agricultural inputs applies, but to see it in the text you need the amending act that introduced it.
Does the law specify the deadline for the statement?
Yes. Article 107 states that the return must be filed no later than 14 days after the end of the tax period, and that the tax period is the calendar month. The deadlines for the books of purchases and sales derive from the tax procedure legislation, not from this law.
Does this text replace the VAT instruction?
No. Instruction No. 6, dated January 30, 2015, as amended, sets forth the implementation procedures and is read together with the law. When the law says “to be determined by instruction,” the instruction provides the answer.
Does the old VAT law still apply?
No. Law No. 7928 of April 27, 1995, was repealed by Article 160, together with the subordinate acts issued for its implementation.
Legal basis
- Ligji nr. 92/2014, datë 24.7.2014, “Për tatimin mbi vlerën e shtuar në Republikën e Shqipërisë”, i ndryshuar, nenet 1, 48, 49, 50, 51, 77, 106, 107, 117, 118, 160 dhe 161.
- Ligji nr. 7928, datë 27.4.1995, i shfuqizuar.
- VKM nr. 953/2014, i ndryshuar, për pragun e regjistrimit.
- Udhëzimi nr. 6, datë 30.1.2015, i ndryshuar.
- Faqja zyrtare e To the Directorate General of Taxes for VAT.
