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All entities operating as accommodation facilities have until March 31, 2020, to apply for the categorization certificate.
All entities that apply by this date will benefit from the reduced rate of value-added tax, which applies to the provision of accommodation services in lodging establishments.
The General Directorate of Taxes informs taxpayers that they will not be eligible for the reduced VAT rate if they fail to meet the legal requirement to apply by this date.
The Ministry of Tourism and Environment, by Order No. 41 dated February 18, 2020, ‘For an amendment to Order No. 267, dated July 24, 2019, “On the approval of the regulation on the manner, criteria, and procedures for the categorization of accommodation facilities”, as amended, notifies all interested parties that the deadline for applying for the categorization certificate has been extended to March 31, 2020.
Thus, based on Law No. 92/2014 “On Value Added Tax in the Republic of Albania,” as amended, Article 49, paragraph 4, (Law No. 107/2017 “On Certain Additions and Amendments to Law No. 92/2014, “On VAT in the Republic of Albania”), as amended), the reduced rate of Value Added Tax of 6% applies to any service provided within accommodation facilities that have applied for the categorization certificate by March 31, 2020.
Source: General Directorate of Taxes.