- VAT deregistration does not eliminate the credit surplus, so it is settled in advance.
- The adjustment is made on the most recent period's return, in the VAT adjustment section.
- The threshold for mandatory registration is 10,000,000 lek in annual turnover.
- Voluntary registration is maintained for at least two years before deregistration is requested.
- Any surplus exceeding 400,000 lek after three consecutive periods may be requested for refund.
When a business opts out of the VAT scheme, the question that's often overlooked is what happens to the VAT it has claimed as a credit surplus. The answer is that it doesn't follow the business once it's outside the scheme.
Therefore, the adjustment is made in advance, on the most recent period's statement, not after the deregistration has taken effect.
Read also: VAT refund. Conditions and deadlines
Two paths to deregistration
First, refund. When a creditor surplus remains for three consecutive tax periods and exceeds 400,000 lek, a refund may be requested under Article 77 of Law No. 92/2014. Exporters receive it within 30 days without waiting for the three periods.
Second step: adjustment. When the surplus does not meet the conditions for reimbursement, it is adjusted on the most recent period's return, in the appropriate VAT adjustment section.
The choice between the two must be made before submitting the deregistration request, because after that the options become more limited.
When the right to deregistration arises
| Parameter | Value |
|---|---|
| Threshold for mandatory registration | 10,000,000 lek annual turnover |
| Voluntary registration | Over 5,000,000 lek in revenue |
| Minimum stay in the scheme for voluntarily enrolled participants. | At least two years |
| Refund of the excess | Over 400,000 lek, after three consecutive periods, with a 60-day term. |
The full terms and procedures are on our website. registration and deregistration for VAT.
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
Do I lose the credit surplus if I opt out of VAT?
If you don't fix it or request a refund in advance, then yes. Therefore, the first step is to calculate it, not to request cancellation.
When will the repair be done?
In the declaration for the final period before deregistration takes effect, in the VAT adjustment section.
Can I unsubscribe immediately after voluntarily signing up?
No. Voluntary registration is maintained for at least two years.
The original notice below dates from 2020 and refers to a decision from that period. The principle it clarifies—namely, the adjustment of the surplus before exiting the scheme—remains the same, while the specific deadlines are verified with the regional directorate before each request.
Original 2020 announcement
The General Directorate of Taxes reminds all taxpayers whose turnover during the 2020 calendar year was below the threshold of 10,000,000 (ten million) lek and who wish to benefit from the provisions of the Council of Ministers' Decision. No. 576, dated July 22, 2020, To deregister from VAT tax liability, take measures to adjust the VAT in the December 2020 declaration by touching field 50 “Adjustment of deductible VAT,” for unsold stock (inventory) goods, or capital goods, other assets used for the activity, where the VAT on these goods was fully or partially deductible.After adjusting the VAT, this amount will be treated as a business/goods cost. After being deregistered from tax liability, the accumulated VAT will no longer be recoverable.For all taxpayers who, regardless of turnover, wish to remain liable for VAT, in their account in the tax system (in e-filing), under the “My Issues” menu, they will need to select the issue: "VAT Tax Liability Declaration" to self-declare whether you will continue to remain in the VAT scheme. The option to make this declaration electronically is available from January 19, 2021, and can only be completed once. Read the full announcement here https://alprofitconsult.al/njoftim-per-cregjistrimin-nga-tvsh-shtuar-fasha-0-5-milion-leke/. For more information, you can contact Taxpayer Services. https://www.tatime.gov.al/c/9/157/drejtorite-rajonale, call the toll-free green number 0800 00 02 at the Call Center, use the Live Chat service on the official DPT website, or officially address the Regional Directorate of jurisdiction. Source: General Directorate of Taxes.
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