- Machinery and equipment under investment contracts worth 500,000,000 lek or more are exempt from VAT on import.
- The exemption is granted by authorization, so it is not applied automatically.
- With authorization, the operator does not pay VAT at the time of customs clearance.
- The goods must be for contract purposes and not for sale.
- The application is submitted online on e-Albania, along with the supporting document package.
For large investments, VAT on imports is not a final cost but money tied up for months. The authorization-based exemption addresses this precisely by eliminating the payment at the time of customs clearance.
The main requirement is the value of the investment contract, 500,000,000 lekë or more, and the fact that the machinery is used in its operation, not for resale.
Read also: VAT Imports and Exports
How to obtain authorization
- The file is prepared with the investment contract and the list of machinery and equipment.
- The link between each item on the list and the contract object is documented.
- Apply online through the relevant service on e-Albania.
- Authorization is pending and is used for the customs clearance of each shipment.
The point that most often knocks down a file is the list. When an item isn't clearly tied to the subject of the contract, it doesn't qualify for the exception, even if the rest is accepted.
What to remember after authorization
Excluded goods cannot be sold as ordinary goods. Changing their destination reinstates the obligation, so their accounting record is kept separately.
For the treatment of depreciation of these assets, see our page. deductible expenses.
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 notificationsFrequently asked questions
What is the threshold value?
The investment contract must be equal to or greater than 500,000,000 lek.
Is it applied automatically?
No. Authorization is required, to be obtained before customs clearance.
Can I sell these devices later?
The sale changes the destination for which the exemption was granted, so it is verified on a case-by-case basis before it is carried out.
Previous text, documents, and steps
Through the service “Machinery and equipment for the implementation of investment contracts with a value equal to or greater than 500 million (five hundred million) lek, which are not for sale.” Applies for authorization to exempt VAT on investments exceeding 500 million Lek. Under this authorization, the economic operator does not pay VAT at the time of goods' customs clearance. This type of exemption applies to machinery and equipment included in the annex of the following legal basis.
Legal basis for exclusion
Law No. 92, dated July 24, 2014, “On Value Added Tax in the Republic of Albania,” as amended (Article 56, paragraph 38(a)); Decision No. 953, dated December 29, 2014, “On the implementing provisions of Law No. 92/2014, “On Value Added Tax in the Republic of Albania” as amended (Article 8 and Annex 1); Decision No. 13, dated January 14, 2015, “For an amendment to Decree No. 953, dated December 29, 2014, of the Council of Ministers, “For the implementing provisions of Law No. 92/2014, ”On Value Added Tax in the Republic of Albania“ • Decree No. 841, dated October 14, 2015, On certain additions and amendments to Decree No. 953, dated December 29, 2014, of the Council of Ministers, “On the implementing provisions of Law No. 92/2014, ”On the value added tax in the Republic of Albania”“, as amended; Decree No. 8, dated January 11, 2017, For certain additions and amendments to Decision No. 953, dated December 29, 2014, of the Council of Ministers, ‘For the implementing provisions of Law No. 92/2014, ”For the value added tax in the Republic of Albania“, as amended; Decree No. 84, dated February 8, 2017, For an amendment to Decree No. 953, dated December 29, 2014, of the Council of Ministers, “For the implementing provisions of Law No. 92/2014, 92/2014 ”On Value Added Tax in the Republic of Albania," as amended.
Necessary documentation
Documents uploaded by the applicant:
Documents to be attached
- Copies of the agreement with the Council of Ministers by which the investment contract has been approved, where the investment value is specified as equal to or exceeding 50 million (fifty million) lek (if such an agreement exists), or, in the case of wholly private investments, copies of the permit/license/authorization (only for the first application)
- Copies of the investment plan, including the cost estimate, indicating that the investment value is equal to or exceeds 500,000,000 (five hundred million) lek, as well as the duration of the investment.
- Copies of the title deed or lease agreement for the premises where the investment will be made.
- The schematic and narrative description of the technological scheme for each of its elements.
- Declaration by the taxable person that the machinery or equipment for which exemption is requested has not been imported for purposes of sale.
Steps of the procedure
Application steps on e-Albania
- Register your business on the e-Albania portal.;
- Select the service “Machinery and equipment for the implementation of investment contracts with a value equal to or greater than 500 million (five hundred million) lek, which are not for sale.”;
- Click the ”Use” button.;
- Fill out the application form with the required information, upload the specified documentation, and click “Submit.”;
- The application is sent for review to the responsible individuals.;
- If the application meets the conditions set forth in the legislation, the authorization is entered into the system. If the application does not meet the conditions, the applicant is notified to complete the documentation or to respond to the denial.
- The response regarding your application is sent to the “My Documents” section of your account on the e-albania portal and to the email address you used to register on the portal.
Necessary time for receiving the service
fifteen days
Validity period
Depending on the customs clearance method, from 1 to 6 months.
Costs
Free of charge
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For any question or uncertainty about the use of the service you can contact at the address [email protected]
Source: e-Albania
