Rimbursimi #2

Taxable persons registered for VAT who have a credit balance exceeding 400,000 ALL are entitled to submit a request for a VAT refund to the VAT Reimbursement Directorate at the General Directorate of Taxes.

The request must be submitted using the approved form, "Request for VAT Refund". This can be completed: Online via the official portal. Officially (in person/hard copy) at the VAT Reimbursement Directorate at the General Directorate of Taxes.

The VAT Reimbursement Directorate, in cooperation with the Regional Tax Directorate where the taxpayer is registered, will verify the taxpayer's status and approve the credit balance as refundable.

If the refund request is fully or partially rejected following an audit, the taxable person will be notified by the Regional Tax Directorate. This notification is issued via a Tax Assessment Notice, in accordance with Law No. 9920, dated May 19, 2008, "On Tax Procedures in the Republic of Albania."

The taxpayer's right to request a refund of a credit balance expires 5 years after the submission date of the tax return, as specified in the relevant tax legislation.

A.VAT Refunds for Non-Exporting Taxpayers

Legal Criteria for Eligibility: To qualify for a refund, non-exporting taxpayers must maintain a deductible VAT credit balance exceeding 400,000 ALL, carried forward for three consecutive tax periods.

VAT refunds are processed through the Treasury System within 60 days from the date the request is submitted. This process follows the regulations established by the Instruction of the Minister of Finance. All refund requests are subject to the standard refund procedure, which includes a mandatory Refund Risk Analysis.

B.Refunds for Exporting Taxpayers

(Legal criteria to be met: Deductible VAT exceeding 400,000 ALL)

1. Exporting taxpayers or taxable persons re-exporting non-Albanian goods under the Inward Processing Regime are eligible for automatic reimbursement within 30 days, provided they meet the following conditions:

• Export Volume: The value of exports in the requested period(s) exceeds 70% of total sales.
• Activity Duration: Have been active in exporting for more than 1 year.
• Documentation: Provide the Customs Export Declaration as proof, issued according to Albanian customs legislation.
• Compliance: Have no outstanding social and health insurance contribution debts.

Taxpayers classified as "Zero-Risk" are eligible for automatic reimbursement within 30 days from the date the VAT refund request is submitted.

2. Exporting taxpayers whose export value, carried out during the tax period(s) for which the refund is requested, accounts for more than 50% up to 70% of the total value of sales, including exports, shall be reimbursed within 30 days from the date of submission of the VAT refund request, subject to a prior risk analysis procedure. The risk analysis may result in the taxpayer having to undergo a tax audit process. However, the entire procedure, including the audit, shall be completed within 30 days from the date of submission of the request. Otherwise, within the 30-day deadline from the date of submission of the refund request, the VAT refund is carried out through the Treasury system.
3. All other taxable persons who carry out exports, but are not classified in points 1 and 2 above, shall be reimbursed within 60 days from the date of submission of the request for refund, subject to the risk analysis procedure.

In case of non-reimbursement of the approved amount for refund, the taxable person has the right to non-payment of other tax liabilities in the amount of the VAT claimed for refund.

If a refund, which should have been carried out by the tax administration, is not performed within the above-mentioned deadlines, the tax administration shall pay late interest on the overpaid amount, as follows:

• When an overpaid amount is credited against another tax liability, the late interest is paid starting from the date of the overpayment until the payment deadline of the tax against which the credit is made;
• When an overpaid amount is reimbursed, the late interest is paid for the period from 30 days after the overpayment is made until the reimbursement is carried out.

Source: General Directorate of Taxes.