In Law No. 92/2014, dated July 24, 2014 “On Value Added Tax in the Republic of Albania,” as amended, it is clearly stipulated that expenses for the purchase or import of passenger cars and services related to
to, except in cases where the purpose of the economic activity is the purchase of passenger cars solely for the purpose of selling them or leasing them, taxi services, ambulance services, and similar activities of this nature.
Warning!
Supplies of goods for which VAT is exempt are treated as VAT-exempt supplies.
It is not deductible on their purchase or use.
Example:
Company X sells a car that it purchased with VAT but did not deduct the VAT at the time of purchase due to limitations set forth in the law. This supply is exempt from VAT, pursuant to Article 54 of Law No. 92/2014, dated July 24, 2014 “On the tax on
”Value Added in the Republic of Albania," as amended.
Therefore, pursuant to the applicable legal provisions, the taxable person does not have the right to deduct VAT on the purchase of the motor vehicle, unless otherwise provided by law (for special cases).