- By Decree No. 655 of October 31, 2018, the transfer of certain outstanding excise duty obligations and refunds for the period before October 1, 2012, was moved from the Tax Administration to the Customs Administration.
- That process was temporary and was closed within six months of the decision's entry into force, i.e., around May 2019. Today there is no longer any deadline or ongoing action related to it.
- As a general rule today, excise duty on imported goods is administered by Customs, while excise duty on domestic production is administered by the tax administration.
- Businesses that trade or manufacture excisable goods, such as alcoholic beverages, tobacco, or fuels, need to know which administration to contact for each specific case.
In 2018, the Council of Ministers decided to transfer the collection of certain outstanding excise duties and reimbursements for the period before October 1, 2012, from the Tax Administration to the Customs Administration. This was a transitional process with a defined timeframe, completed long ago, but the relationship between the two institutions that this decision reflected remains the same today.
From our daily work, we often see that businesses selling excisable goods don't fully understand that excise duty, unlike most other tax obligations, is not administered by a single institution. This often leads them to the wrong institution when they need an answer or a specific procedure.
Read also: Tax legislation.
What changed with Decree No. 655/2018?
Transfer of old reimbursements to Customs
Decision No. 655, dated October 31, 2018, amended Governmental Decision No. 612, dated September 5, 2012, “On the implementing provisions of the Law ‘On Excises in the Republic of Albania'.” Taxpayers who as of October 1, 2012 were still undergoing a tax audit by the Tax Administration for excise duty refund, as well as those who had already obtained the right to a refund but had not yet received the amount, were from that point on directed to the Customs Administration.
The six-month period, now closed
The settlement of old obligations and reimbursements was supposed to be completed within six months of the decision's entry into force, that is, around May 2019. This administrative deadline has long since passed and no longer constitutes a live matter for any business today.
Who administers excise duty today?
Excise tax on imports, under the authority of Customs.
As a general rule, the excise tax that arises at the moment of importing an excisable good, such as fuels, alcoholic beverages, or imported tobacco, is administered and collected by the Customs Administration, either at the border or at the time of the goods' customs release.
Excise tax on domestic production, under the jurisdiction of the tax administration.
When taxable goods are produced domestically, such as wine, rakia, or beer made by local businesses, excise administration remains the responsibility of the tax authority, in accordance with the specific rules for each product category.
This separation brings some practical consequences for the business:
- An importing business handles excise duties primarily with Customs.
- A domestic producer handles them with the tax administration.
- A business that both imports and produces may need to communicate with both institutions, as the case may be.
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 notificationsWhat does this mean for your business?
How do you know which administration to turn to?
The point of origin is always the source of the goods, whether they are imported or domestically produced. This in principle determines the competent authority, but for specific cases where a good goes through more than one stage, it is best to verify in advance with the authority itself or with us.
Documentation that must be kept
Regardless of the institution, import or production documentation, the relevant invoices, and any official confirmation of excise tax paid or refunded must be retained, as they may be requested at any time by either institution.
Why it Matters
Directing matters to the wrong institution not only wastes time. In specific cases, it can delay a reimbursement or complicate the pursuit of an obligation, precisely because the issue is handled by two administrations with divided responsibilities.
The risk of delays when you head in the wrong direction
Any request submitted to the wrong institution usually has to be redirected, adding waiting time that could have been avoided with a simple preliminary check.
How we handle this with our clients
For clients who trade or manufacture taxable goods, we identify up front the competent authority for each type of matter, so that every request or declaration goes directly to the right place.
Frequently asked questions
Is the deadline for Government Decree No. 655/2018 still open?
No. The six-month period for transferring old obligations and reimbursements closed around May 2019, and there is no longer any ongoing action regarding it.
Who do I contact today for an excise tax refund?
It depends on the source of the goods. For excise duty paid on imports, you should contact the Customs Administration. For excise duty related to domestic production, you should contact the tax administration. In specific cases, prior verification prevents institutional error.
Does this division change from time to time?
The excise tax legal framework changes from time to time through new Council of Ministers' acts and directives from both administrations, so for important cases it is recommended to verify in advance rather than rely solely on the general rule.
Does this split also affect businesses that do not trade excisable goods?
Not directly. The division of responsibilities between Customs and the tax administration for excise duties affects only businesses that import, produce, or trade excisable goods, such as fuels, alcoholic beverages, or tobacco.
The original 2018 notice describes only the transitional process of that period, which is now closed. For current excise matters, verification is carried out directly with the relevant authority. Customs of Albania or with us, as the case may be.
