- VAT registration takes effect the day your turnover crosses the threshold, not on January 1 and not when you notice it. From that day, you have 15 days to apply for registration.
- The first year to meet the 5,000,000 lek threshold is the calendar year 2027. The year 2026 still closes at 10,000,000 lek.
- VAT is calculated only on the amount that exceeds the threshold, not on the total annual turnover.
- The stock inventory list is submitted at the time of registration. A stock valued at 1,200,000 lekë with an invoice includes 200,000 lekë of deductible VAT, and this right does not revert after that date.
- The monthly cycle begins immediately. Sales and purchase books through the 11th, statements and payments by the 14th.
VAT registration doesn't start with a letter from the tax office. It begins the day your turnover crosses the threshold, and from that day you have 15 days to apply for registration. As of January 1, 2027, the threshold will drop to 5,000,000 lek, so many businesses will cross it that day without even noticing.
The most common mistake these days is to expect January 1 as your registration date. That's not your date. The threshold is measured on a calendar-year basis, so the first year measured at 5,000,000 lek is 2027 itself, and your date falls sometime within that year.
Here are the steps from start to finish: how you determine the date and make the request. How to prepare the inventory list that reclaims your stock VAT. As of which date the invoice is VAT-charged, what goes on the first return, and what the first full month looks like.
Registration for VAT begins the day you cross the threshold, not on January 1.
Revenue is counted from January 1, cumulatively, month by month. When the total exceeds the threshold, that day is your day. The 15-day period starts from that date, not from the end of the year or from the day you notice it.
The monthly cumulative table is not our recommendation. It is the business's own obligation under the small-business regime, precisely so that the moment of transition can be identified. Without that table, your date remains unknown until it's too late.
There is also a second case. When the threshold is only exceeded after the year has ended, the request must be submitted by January 15 of the following year.
Step one. Request for registration within 15 days.
The application is submitted online through e-Albania and e-Filing as a notification of change to the registration data. The full procedure and documents are available on our website. How to register for and deregister from VAT.
Two things should not be done at this stage. Do not issue a VAT invoice before you register, because the law prohibits it. And do not delay registering until the administration asks you to, because it has the right to register you itself once it determines that the conditions have been met.
A little-known perk. VAT is calculated only on the amount that exceeds the threshold, not on the entire year's turnover. The example in the manual itself is clear. Turnover from January to September is 4,800,000 lekë; a sale on October 2 brings it to 5,100,000 lekë, and VAT is calculated on the 100,000 lekë.
Step two. The inventory list, the step where there's money.
This is the step that most people miss. The VAT on goods you have in stock on the date of registration is deducted in the first tax period, but only if the inventory is submitted at the time of registration. After that date, the right is not restored.
The practical consequence is the opposite of what many businesses do in December. The goal isn't to reduce inventory. It's to ensure that every item has a VAT invoice, is within twelve months, and that the inventory is closed accurately on the recording date.
Three conditions that must be met together.
First, the goods must be taxable supplies that entitle to a deduction. If part of the activity is exempt from VAT, the goods for that part are not included.
Second, the quantity and value list is submitted to the tax authority at the time of registration and reflected in the accounting records. Third, each item is supported by a VAT purchase invoice no older than 12 tax periods.
How is the list built?
The list must tie each item to its own invoice. A list that provides only quantities and a total value does not satisfy the third requirement, so the invoice column is not mere decoration.
| The mall | Quantity | Value excluding VAT | VAT | Invoice and date |
|---|---|---|---|---|
| [Name as on the invoice] | [Unit and quantity] | [Value in Lek] | [VAT in lekë] | [Invoice number, date, supplier's NIPT] |
| [Second voice] | […] | […] | […] | […] |
| Total | [Amount] | [Amount of VAT requested for deduction] |
How much is it worth in money, in figures?
A store is registered and, as of the registration date, has inventory worth 1,200,000 lekë, all with tax invoices and within twelve months. The VAT on that amount is 200,000 lek. In the first month it sells 450,000 lek excluding VAT and buys 300,000 lek excluding VAT.
| First statement | With the inventory list | Without the inventory list |
|---|---|---|
| Sales VAT | 90,000 lek | 90,000 lek |
| Monthly purchase VAT | 60,000 lek | 60,000 lek |
| VAT on goods in stock | 200,000 lek | zero lek |
| Result | Surplus 170,000 lek | For a payment of 30,000 lek |
The difference is 200,000 lekë and it comes from a document submitted on the correct day. A threshold must be known. If this VAT surplus remains for three consecutive months, it is not refunded. It is carried forward and offset against future sales. The general rules of VAT refund They are separate issues.
Step three. As of which date is the invoice subject to VAT?
The date on which you enter the regime is recorded on the registration itself. Until that date, invoices are issued without VAT, and from that date onward every invoice includes it. Therefore, prices are revised before the date, not after.
If the price charged to the customer remains the same and VAT starts to stay within it, the margin falls. Customer discussions and fixed-price contracts that span more than a year are handled up front, because after the date the invoice carries VAT without question.
On the same day, the billing settings are also checked to ensure that the rate is correctly applied on the fiscalized invoice. Confirm the exact format of this change with the regional tax office, as it depends on the software you use.
Step four. The first statement and the books
The tax period is the calendar month, so the return is filed immediately and there is no transition period. Sales and purchase books are submitted by the 11th of the following month, and the return, together with payment, by the 14th.
Three items are included in the first statement: the month's sales VAT, the month's purchases VAT, and the stock VAT from the inventory list. Precisely because the third item is included here only, the list is not carried over to the second month.
How books are filled out and what is checked before delivery is covered on our website. When VAT is declared and how the books are filled out.
The first full month, and the rhythm that begins with it.
From that point on, the work becomes repetitive. Each month, the VAT on sales is collected, the VAT on documented purchases is deducted, and the difference is either paid or carried over.
Four things change in your routine. Invoices must be issued under the business's NIPT and not in the administrator's name. Taxable supplies are separated from exempt ones so that the deduction is accurate. The dates 11 and 14 are entered on the calendar as permanent deadlines. And cash payments between businesses are kept within the limit.
VAT Pre-Registration Checklist
All work that generates money must be submitted before the deadline. After that, none of these steps can restore a lost right.
Eight steps that close before the date
- Keep the cumulative traffic table and review it at the end of each month.
- Generate stock status reports by quantity and value from accounting, not from warehouse memory.
- Link each item to its own invoice, including the invoice number, date, and supplier NIPT.
- Remove from the list any item without a VAT invoice or with an invoice older than twelve months.
- Request any missing invoices from suppliers until the due date has passed.
- Recalculate the prices and notify customers before the date.
- Review contracts with terms extending beyond the year, especially those with a fixed price and no tax clause.
- Set up the billing settings and mark the 11th and 14th on the calendar.
Step five yields more results than the others. A bill that the supplier can still issue today will become impossible tomorrow.
When your date falls in 2027
| Your situation | When the request is submitted |
|---|---|
| Cumulative turnover as of January 1, 2027 exceeds 5,000,000 lek within the year. | Within 15 days from the date of transfer. |
| The threshold is only crossed when the year ends. | By January 15, 2028 |
| Business open year-round | The threshold is calculated proportionally to the remaining months. |
| Import goods for resale | The obligation may exist regardless of turnover. |
| Volunteer | Whenever you want, but the regimen must be maintained for at least two years. |
For a retail business, the cumulative register is kept together with the cash register and the inventory. It shows how the three are connected. Store accounting.
Read also: Taxes 2027: What's changing and which decision to start with
The output is much slower than the input in VAT.
This is worth knowing before you enter. The request for exit is made only after the turnover of the immediately preceding full calendar year falls below the threshold. Then the administration monitors twelve months and issues its decision at the end.
Throughout that period you remain under the normal regime. If during that time supplies again exceed the threshold, the request is denied. So a good year gets you in for several years.
This also makes it voluntary registration A weighty decision, because it will last at least two years.
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
Should I register on January 1, 2027?
No. The first year measured at 5,000,000 lek is the 2027 calendar year. Turnover is counted from January 1, and your day is the day it crosses the threshold.
I crossed the threshold in the middle of the month. From which day does the deadline start?
The directive counts the 15 days from the very day of the sale that crossed the threshold. The law refers to the last day of the month. Count from the date of crossing, because the directive is the text enforced by the administration.
Do I pay VAT on all my annual turnover?
No. VAT is calculated only on the amount that exceeds the threshold. The portion below the threshold remains outside.
How far back can I go with the stock invoices?
Up to 12 tax periods, that is, up to twelve months prior to the period in question. Goods with older invoices remain in stock; they simply do not appear on the list.
Do shelves, refrigerators, and store fixtures count toward the list?
No. The text refers to inventory goods that are intended for sale and on which you will calculate VAT on sale. Equipment is not sold, so it is treated differently.
How long after registration does the declaration begin?
Immediately. There is no transition period. Books by the 11th and the statement with payment by the 14th of the following month.
What happens if I don't request the registration?
The administration has the right to register you on its own when it determines that the conditions have been met, and obligations are calculated from the date you were supposed to have registered. Therefore, the deadline is not extended by waiting.
Legal basis
Instruction No. 6, dated January 30, 2015, updated text, in implementation of Law No. 92/2014.
- Article 73, calculation of turnover and business conducted during the year.
- Article 74, obligation for chronological and cumulative registrations.
- Article 75: the calendar year as a measurement period, a 15-day deadline, VAT only on the surplus, and the exit procedure.
- Article 76, VAT deduction on inventory goods, the three conditions and the refund limit, in implementation of Article 83 of the law.
Law No. 92/2014, Article 122(1) on the date of crossing the border, and Articles 106 and 107 on the monthly deadlines for books and the declaration.
Council of Ministers Decision No. 822, dated October 28, 2026, on the threshold of 5,000,000 lek from January 1, 2027, published in the Official Gazette No. 233.
