Accommodation facilities and taxes. VAT 6%, capacity and facilities.

Accommodation establishments have the most distinctive tax rules in the entire market. Two VAT rates on the same invoice, capacity reporting with minimum thresholds, and tax relief that varies by category. Hotels, guesthouses, and resorts are all affected simultaneously.

This guide lays it out in order: how to properly invoice accommodation, what the Government Decree No. 160 requires regarding capacity, and which amenities are due to your category.

Read also: Reduced VAT rates. Who benefits from 6% and who from 10%?

How is accommodation billed with 6%?

The 6% rate applies only to the accommodation service. To keep the invoice under control, the description begins with the word "Room" and specifies the exact number of nights. Any other service—bar, restaurant, spa, or transport—is billed separately on a separate line item at the 20% rate.

The classic seasonal mistake is the bundled package—accommodation and dinner on a single line item at 6%. At audit, the VAT difference is recalculated at 20TP3T and accompanied by a fine. Separating the line items on the invoice is the cheapest defense there is.

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Calculated example

A couple stays 5 nights in a hotel with a room rate of 10,000 lekë per night. Accommodation is 50,000 lek, with 6% VAT, i.e., 3,000 lek. During the stay they spend 20,000 lek in the restaurant, with 20% VAT, i.e., 4,000 lek.

The correct invoice has two lines. Room, 5 nights, 50,000 lekë at 6%. Restaurant, 20,000 lekë with 20%. Total 77,000 lekë, of which 7,000 lekë is VAT. The same amount invoiced in a single line with 6% would look cheaper today and would cost much more at tomorrow's audit.

Declaration of capacity pursuant to VKM No. 160

What is declared and when

Each accommodation facility declares its annual occupancy capacity by January of the following year. The declaration is made in Electronic filing and serves the administration to compare the declared revenues with actual utilization.

Minimum levels of utilization

The VKM sets two reference levels: 651 TP3T for the high season, from May 1 to September 30, and 301 TP3T for the rest of the year. Declared revenues that fall significantly below these reference levels attract audit attention, so actual variances—whether due to repairs or a weak season—are documented as soon as they occur.

Failure to declare

An entity that fails to report at all puts itself in the weakest position; the administration assesses utilization itself based on minimum levels. Timely reporting, even with modest figures, is always a better position than silence.

Tax incentives by category

The Inn and the Small Tourism Business

With annual turnover up to 14,000,000 lek, the profit tax is 0% until December 31, 2029. For most guesthouses and tourist apartments, this means only contributions and VAT according to the threshold.

Certified agritourism

The most favored category. 51% profit tax until the end of 2029 and 61% VAT on accommodation services. The condition is official certification as an agritourism operator, without which none of the benefits apply.

4- and 5-star hotels, special status

Entities that obtain special status are exempt from corporate income tax for 10 years, in addition to the 6% VAT rate on accommodation. The status is granted based on specific investment criteria and is verified on a case-by-case basis before each business plan.

Frequently asked questions

What is the VAT rate for accommodation facilities?

61% VAT on the accommodation service. Other services within the establishment—bar, restaurant, and spa—are billed at 20% VAT.

How should the description on the invoice begin?

The word "Room," followed by the number of nights stayed. Additional services are listed on separate lines.

When is the utilization capacity declared?

By January of the following year, in accordance with Government Decree No. 160 of 2025. The declaration is filed via e-Filing.

What happens if my actual utilization is below the minimum levels?

Declare the actual figures and document the reasons—closures, repairs, or a weak season. Timely documentation is your protection in case of an audit.

Who benefits from the 5% capital gains tax?

Certified agritourism entities, until December 31, 2029. Without official certification, the standard does not apply.

Does a small guesthouse pay income tax?

With a turnover of up to 14,000,000 lek per year, no. The 0% regime is valid until the end of 2029, just like for all small businesses.

Read also: Tax audit. Is your business ready?