- When the Tax Administration itself conducts an assessment and the result is an obligation or a credit surplus of up to 1,000 lek, it is treated as zero, without creating a payment obligation or credit for the taxpayer.
- This rule applies only to assessments made by the Tax Administration itself, not to liabilities self-reported by the taxpayer.
- Any self-assessed obligation by the taxpayer, no matter how small, must be paid within the legally prescribed deadlines, regardless of the amount.
- The regulation is based on Law No. 9920/2008 and Instruction No. 10/2019, which amended Instruction No. 24/2008; therefore, the specific threshold must be verified to still be in effect before relying on it.
When the Tax Administration conducts an assessment and the result is a small amount due or a small credit surplus, it is not always worth the administrative effort for a minimal sum. For this reason, Law No. 9920 of May 19, 2008, “On Tax Procedures in the Republic of Albania,” as amended, together with Instruction No. 10 of March 15, 2019, provides for a threshold below which the amount is treated as zero.
From our daily work, we often see taxpayers confuse this rule with their self-reporting, believing that any small amount can be overlooked. The zero-value rule applies only when the amount arises from an assessment made by the administration itself, not when the taxpayer self-reports the liability.
Read also: On the key changes to the law on tax procedures.
The zero-value obligation or credit rule
The threshold of 1,000 lek
According to Instruction No. 10/2019, which amended Instruction No. 24, dated September 2, 2008, “On Tax Procedures in the Republic of Albania,” the amount of tax liability to be paid, or the amount of credit excess, up to 1,000 lek, received as a result of an assessment carried out by the Tax Administration, is treated as a zero-value liability or credit.
A clear boundary of the rule
This rule applies only to tax liabilities directly assessed by the Tax Administration, not to amounts self-declared by the taxpayer. Any self-declared liability, regardless of the amount or type of tax, must be paid within the legally applicable deadlines, without exception for small amounts.
Every time there is a tax or financial change that affects your business, we notify you directly by email with a practical explanation.
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Don't confuse assessment with self-reporting.
The most common mistake is believing that this threshold also protects the obligations the business itself declares, when in fact it covers only the assessments issued by the administration. A taxpayer who ignores a small self-reported obligation, believing it falls below this threshold, risks late fees and penalties, regardless of the initially small amount.
How we handle this with our clients
When a client receives an assessment notice from the Tax Administration, we first verify whether the amount falls below the zero-rating threshold, and we clearly explain the difference from their self-declared obligations, which must be addressed in any case.
Frequently asked questions
Does the threshold also apply to VAT if I self-declare?
No. The zero-amount threshold applies only when the amount arises from an assessment conducted by the Tax Administration. Self-assessed liabilities by the taxpayer, including VAT, must be paid in full, regardless of the amount.
What happens if the balance of my credit falls below 1,000 lek?
If this excess arose as a result of an assessment by the administration, it is treated as a zero-value credit, meaning it is not carried forward as a small credit in future periods.
Is this threshold still 1,000 lek today?
The threshold was set by Instruction No. 10/2019. Since administrative instructions change from time to time, we recommend verifying the current amount with the DPT before using it in a specific case.
The original DPT notice describes the setting of this threshold in 2019. Official DPT Announcement. The principle of a minimum threshold for small assessments remains part of administrative practice, while the specific amount must be verified and updated.
