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DREJTORIA E PERGJITHSHME E TATIMEVE – LEGJISLACIONI TATIMOR

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DREJTORIA E PERGJITHSHME E TATIMEVE – LEGJISLACIONI TATIMOR Powered By Docstoc
					Ky akt është përkthyer nga Ministria e Financave.

                                          LAW

                                No 7928 dated 27.4.1995

                               ON VALUE ADDED TAX
                                    AMENDED

 Pursuant to the article 78, 83, point 1 and 155 of the Constitution, upon the proposal of
                                  the Council of Ministers,

                 THE ASSEMBLY OF THE REPUBLIC OF ALBANIA

                                        DECIDED:

                                       CHAPTER I

                                GENERAL PROVISIONS

                                            Article 1
                                         Purpose of law
     1. This law establishes the value added tax.
     2. The value added tax (VAT) is paid:
a. for all taxable supplies of goods and services effected upon payment by a taxable
person as part of his economic activity in the territory of the Republic of Albania.
b. for all imports of goods in the territory of the Republic of Albania.

                                      CHAPTER II

                                  TAXABLE PERSONS

                                            Article 2
                                        Taxable persons
         1. The legal entity or the physical person, the individual or any other person is a
taxable person if:
a. he is obliged to be registered pursuant to this law or;
b. he is registered and has still not been deregistered.
         2. For purposes of the paragraph 1, the term “person” also includes the state
public national, regional or local institutions or bodies carrying out economic activities.

                                     Article 3*
                          Obligation to request registration
        1. The person that is not registered, is obliged to file an application for
registration:




                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
 Ky akt është përkthyer nga Ministria e Financave.

 a. within 15 days from the date of the beginning of its economic activity when his
 turnover realized or to be realized is higher than the minimum limit of registration,
 envisaged in the point 4 of this article;
 b. within 15 days after the termination of the calendar year, if during this year the
 turnover is increased beyond the minimum limit of registration, envisaged in the point 4
 of this article.
 1/1.Repealed
         2. The turnover which is taken into account includes all economic activities
 carried out by the same person and is circulated on the basis of the total price to be paid
 by the buyer.
         3. If the person starts or interrupts his economic activity during a calendar year,
 the turnover in relation to the minimum limit of registration is calculated in proportion to
 the duration of the activities.
         4. The minimum limit of registration is 8 million ALL (per calendar year) or any
 other amount specified by the Council of Ministers pursuant to the point 5 of this article.
         5. When it deems necessary, the Council of Ministers reviews the minimum limit
 of registration specified in conformity with the point 4 of this article, taking into
 consideration the inflation or the economic and administrative factors and replaces this
 minimum limit with a new one.

                                            Article 4
                                  Right to request registration
 A person who is not obliged to be registered pursuant to the article 3 and as part of his
 economic activity, effects taxable supplies, is entitled to file an application for
 registration pursuant to this law.

                                           Article 5
                                          Registration
         1. The person who files an application for registration is obliged to do it in
  accordance with the form specified by the Minister of Finances.
         2. When registering a person, the tax bodies grant:
         a) a single tax number for that person, and
         b) a registration certificate specifying the date when the registration enters into
force.
         3. The tax bodies are entitled to register a taxable person even if he has not filed
  an application for registration.

                                           Article 6
                                Obligation to notify changes
 The taxable person is obliged to notify the tax bodies in writing within 15 days of any
 changes of his name, address, economic activity or of any changes of the information he
 has provided to the tax bodies at the time he has filed an application for registration.




                   Department of Foreign Affairs and Taxpayers
                         Sector of Services to Taxpayers
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                                          Article 7**
                                         Deregistration
The registered taxable person is obliged to file an application for deregistration not later
than 15 days from the last day on which he has effected taxable supplies as part of his
economic activity.
The tax bodies deregister any person who requests to be deregistered pursuant to the first
paragraph with effect from the date when he has effected the last taxable supply.
The tax bodies refuse to register any person who is neither obliged, nor has any right to
be registered. These bodies deregister any person who is neither obliged, nor has the right
to be registered, with effect from the date the person has no right to be registered.
Each person who is registered and has never been obliged or had any right to be
registered is deregistered by the tax bodies with effect from the date on which the
registration has entered into force.
The registered taxable person is entitled to file an application for deregistration at any
time but not earlier than one year from the date of the entry into force of his registration,
if his taxable supplies do not exceed the minimum limit specified in the article 3, in
relation to the most recent period of 12 months.
The tax bodies deregister the taxable person who has filed an application for
deregistration pursuant to the paragraph 5, with effect from the date when the person has
filed an application for deregistration.
**At the moment of the deregistration, the taxable person is obliged to submit a
statement and final payment form which contains the information requested from the tax
body.

                                      CHAPTER III

                        SUPPLIES OF GOODS AND SERVICES

                                        Article 8**
                                      Supply of goods
         1. **The supply of goods means the assignment of the right to possess as an
owner the movable or immovable property, unless this law otherwise specifies.
         2. The supply of electric energy, water, gas, heat, cooling system or conditioned
air is a supply of goods.

                                        Article 9**
                                    Supply of services
       1. **The supply of services means any supply other than the supply of goods,
   unless this law otherwise specifies.
       2. The supply of services effected by an employee for his employer due to
   employment is not a supply by the employee.




                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
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                                         Article 10
                                       Mixed supplies
         1. The supply of services included in the supply of goods is part of the supply of
goods.
        2. The supply of goods included in the supply of services is part of the supply of
services.
        3. The supply of services included in the import of goods is part of the import of
goods.
        4. The Minister of Finances establishes by virtue of a guideline if a supply is a
supply of goods or a supply of services.
        5. The Minister of Finances is entitled to establish by virtue of a guideline
whether the taxable person who manufactures goods as part of his economic activity used
by him for purposes of this activity, is considered simultaneously as if he supplies these
goods as part of his economic activity and as his receipt of supply for purposes of this
activity.
*** The point 5 of this article is not applicable in the case of the construction companies
which build to sell, irrespective of the fact that the undertaker of works and the investor
are the same taxable person. In this case, the supply of the construction process is
taxable, in accordance with the rules specified in the guideline of the Minister of
Finances.

                                         Article 11
                                  Supply through an agent
        1. The supply of goods or services effected through an agent who acts in the
capacity of agent for another person, is a supply by the principal.
        2. The first paragraph is not applicable for the supply of services of the agent
acting as an agent of his principal.

                                           Article 12
                                 Transfer of economic activity
The transfer from a taxable person of an economic activity or of a part of it in relation to
which he is taxable, to another person, is not a supply of goods or services, if the receiver
is or becomes a person registered in conformity with this law, in relation to the economic
activity or its part being transferred.

                                        Article 13***
                                     Moment of supply
        1. The supply is deemed effected at the moment when the issue of the receipt is
mandatory, unless this law otherwise specifies.
        2. The person who effects a taxable supply is obliged to issue a bill for that supply
at the moment when the goods are delivered or when they become available or when the
services are carried out by him in relation to that supply.
        3. When the person who effects a taxable supply cashes the payment prior the
delivery of the goods or before they become available or before the implementation of the



                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

services, he is obliged to issue a bill for the supply at the moment the payment is cashed
by him.
        4. When the person who effects the taxable supply is not obliged to issue a bill,
the moment of the supply is the moment when the goods are delivered or when they
become available or when the services are carried out or if the payment is previously
cashed, the moment when the payment is cashed.
        5. For purposes of this article, when two or more payments for the received
supplies are effected or shall be effected, then each payment is considered for a special
supply insomuch as the amount of that payment.
        6. When the services are regularly or continuously supplied, the supply of services
is deemed effected in each case when a bill is issued in relation to each part of that
supply. **As for construction, the tax bill must be issued on a monthly basis.
        7. When the goods are transferred on the basis of a contract which envisages rent
or sales in installments, regardless of the moment of the transfer of property, the VAT
obligation arises over the full value of goods and is calculated over the payments of the
full value of installments for the goods made available to the user.

                                          Article 14
                                   Place of supply of goods
         1. The place of supply of goods is the place where the goods are delivered or they
become available by the suppliers. If the delivery or the availability includes the transport
of goods, the place of the supply is the location of goods where the transportation begins,
unless this law otherwise specifies.
         2. The supply of electric energy, gas, water, heat, cooling system and conditioned
air is effected wherein the supply is received.

                                         Article 15
                                 Place of supply of services
        1. The supply of services is effected wherein the services are provided unless this
law otherwise specifies.
        2. The supply of services in relation to the immovable property is effected where
the immovable property is.
        3. The supply of transport services or the supply of services included in the
transport is effected wherein the transport takes places.
        4. The supply of services which are not included in the paragraph 2 or 3 by the
taxable person, whose place of the economic activity is in Albania or in the case of the
individual, the ordinary place of residence of which is in Albania, is effected in the place
of the economic activity or in the ordinary place of residence.
        5. When the taxable supply of services carried out in Albania is effected by a
person who has not the place of economic activity in Albania or in the case of the
individual, the ordinary place of residence of which is abroad, the person to which the
services are supplied, is deemed as if he has effected the supply in Albania, as part of his
economic activity.

                                        Article 16
                                     Taxable supplies

                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

The taxable supply means the supply of goods or services, with the exception of the
exempted supplies.

                                      Article 17
                                     Economic Activity
       1. The supply is part of the economic activity of a person, if the supply is effected
by him as part of or related to his independent economic activity, irrespective of its
purpose or outcome.
       2. The economic activities of an individual do not include the activities carried out
by him only as part of his recreational or entertaining activities.

                                         Article 18**
                                    Supply upon payment
        1. The supply is deemed effected upon payment, fully or partly, in cash or in kind,
if the direct or the indirect supplier receives or is entitled to receive a payment for that
supply both from the supplied person or from another person.
        2. The use by a taxable person for private purposes of goods supplied to him for
purposes of his economic activity is treated as a supply of those goods upon payment.
**In cases of deregistration, all goods supplied for the taxable person and still under the
ownership of the taxable person for purposes of his own economic activity and all stock
goods of the taxable person are treated as a supply of those goods upon payment on the
date of the deregistration.
        3. The goods supplied to a taxable person for purposes of his own economic
activity, when supplied by him or given to other persons upon reduced payment, are
treated as supplies upon payment, save the cases these goods are supplies and used only
as samples.
        4. The supply is effected upon the reduced payment if the supplier does not cash
the payment or if the payment is obviously lower than it should have been if the purpose
of the supplier has been respective profit and similar supplies.

                                           Article 19
                                      Exempted supplies
         1. The supply is an exempted one if stipulated in the article 20 to 25 and the
article 25.1, 25.2, 25.3 and 26.1 of this law.
         2. The Minister of Finances is entitled to establish by virtue of a guideline which
of the supplies exempted from the article 20 to 25 and from the articles 25.1, 25.2, 25.3,
26.1 of this law is not a supply exempted under specific conditions and circumstances.




                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

                                       Article 20***
                                     Land and buildings
        1. *** The supply of land and site or their rent is an exempted supply save the
cases of the use for parking or storage of transport vehicles and of other mobile vehicles.
        2. The supply of buildings, in addition to the construction process, is an exempted
supply.
       3.Rent of buildings is an exempted supply, with the exception of:
       a) renting for a period of not more than two months;
       b) accommodation in hotels or resort places.

                                          Article 21
                                      Financial services
   1. The supply of the financial services is an exempted service.
   2. For purposes of this article, financial services mean:
   a) giving, negotiating and loans, credits, credit guarantees and any security, including
   administration of loans, credits or credit guarantees by the giver;
   b) transactions concerning bank accounts, payments, transfers, debts, cheques and
   negotiable instruments, except the collection of debt;
   c) transactions concerning currency, banknote and money which are legal payment
   instruments, except articles used only for collections;
   ç) transactions concerning shares, financial capitals, bonds and other securities,
   except supervision services;
   d) administration of investment funds;
   dh) transactions concerning life insurance contracts, including re-insurance;
   e) transactions concerning administration of pension funds and obligatory health
   insurance.

                                      Article 22
                                        Banks
The supply of gold from the Bank of Albania and the second level banks and of
banknotes and currencies from the Bank of Albania is an exempted supply.

                                      Article 23
                                    Postal Services
The supply of postal stamps for use of postal services or similar stamps is an exempted
supply.

                                       Article 24
                                Non-profit organizations
This supply effected by a non-profit organization upon reduced payment is an exempted
supply if it is:
 a supply of services from religious or philosophical organizations in view of spiritual
well being.


                                        Article 25

                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

                                     Diplomats etc.
The Minister of Finances establishes by virtue of a guideline the exemption of supplies
for diplomatic and consular missions as well as for their personnel on basis of reciprocity
and the exemption of supplies for international organizations by virtue of international
agreements.

                                      Article 25/1***
                                  Hydrocarbon Operations
The following are excluded from VAT:
        a) The supply of services carried out by their contractors and subcontractors,
certified as such by the National Agency of Natural Resources, concerning
implementation of research stages and conduct of hydrocarbon operations.
        b) The supply of goods that the contractors effect for each other or that the
subcontractors effect for their contractors, imported in conformity with the article 26/1 of
this law.
“Hydrocarbon operations”, for the effect of this paragraph, has the same meaning as
ascribed in the Law no.7746, dated 28.07.1993 “On hydrocarbon”.

                                    Article 25/2
                        Medicaments and medical equipment
The supply of medicaments, and packages and materials used for production and
confection of medicaments are exempted supplies.

                                    Article 25/3****
        Sales of books, newspapers, magazines and related advertisement services
The supply of services of printing houses for newspapers, the supply of newspapers,
magazines and books of any kind and the supply of service of advertisements from print
and electronic media are exempted from the value added tax.

                                       Article 25/5
1. Free of charge supply as assistance to specific situations, pursuant to the law No 8756
dated 26.03.2001 “On civil emergencies”, is an exempted supply.
    3. The Council of Ministers is charged to specify the rules for the cases of the
    exclusion of aids administered in case of civil emergencies.

                                      Article 25/6*
1. The elaboration by the supply subcontractors of the services of the non-Albanian goods
intended to be re-exported for the taxable persons authorized pursuant to the provisions
provided for in the Customs Code for operations under the active processing regime is an
exempted supply.
    4 The Minister of Finances establishes by virtue of a guideline the required
    documentation for the application of the exemption.

                                  Article 25/7****
The supplies of services of gambling, casinos and hippodromes are supplies exempted
from the value added tax.

                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.



                                       Article 26***
                                      Import of goods
        1. For purposes of this law “import of goods” has the same meaning as ascribed in
the Law No. 7609, dated 22.9.1992 “On customs fees” and their import is deemed
realized at the moment envisaged in that law, even if the imported goods are exempted or
not from the customs taxes by that law.
        2. VAT is calculated, applied and paid for the import of goods as if the payable
VAT is a customs tax stipulated by the Law No 7609, dated 22.9.1992 “On customs
fees”.
2.1. *** For the machinery and the equipment imported by the taxable persons in the
meaning of this law, in support of their economic activity, irrespective of its type, the
scheme of the deferral of the VAT payment up to 12 months, is applicable. According to
this scheme, the VAT is not paid at customs at the moment of import.
The Council of Ministers establishes by virtue of a guideline the scheme of the deferral of
payment.
2.2. **For the import of the electric energy by KESH sh.a, the system of the deferral of
the VAT payment according to the scheme established by the decision of the Council of
Ministers, is applicable.
        3. The taxable value of imported goods is established by virtue of the Law No
7609, dated 22.9.1992 “On customs fees”, even if the imported goods are taxable or not
by customs taxes by virtue of this law.
        4. The taxable value of the imported goods also includes, if not included pursuant
to the paragraph 3:
        a) expenses of transport and insurance and other expenses included in the import
        of goods and their delivery until the moment of the entry into the territory of the
        Republic of Albania;
        b) fees, taxes and payable duties as a consequence of the export of these goods
        from states from which they are exported or are payable as a result of their import,
        except the payable VAT which is not included in conformity with this law.
5. The taxable value for the processed gold, imported, stipulated in accordance with the
above cited points 3 and 4, without including the value of the gold used as a raw material.
The manner of the calculation of the value of the gold used as a raw material is specified
by the guideline of the Minister of Finances, in pursuance of this law.
6. The operators of the mobile phones shall continue to offer their services for all SIM
cards and IMEI numbers of mobile phone devices which are in use on 1 October 2007.
Upon the entry into force of this law, starting from 1 October 2007, the mobile phone
operators shall offer their services only for IMEI numbers of mobile phone devices for
which their importers or owners have pursued the following procedure:
a) at the moment of the statement and the payment of fiscal obligations to the customs
service, the importers of the mobile phone devices must also declare the list of IMEI
numbers of the imported devices;
b) individuals, who at the moment of the entry into customs, own mobile phone devices,
entered for the first time in Albania, the value of which is over the untaxable minimum
established by law, follow the same procedure as the one stipulated in the letter “a” of
this point;

                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

c) individuals, who at the moment of the entry into customs, own mobile phone devices,
entered for the first time in Albania, the value of which is under the untaxable minimum
established by law, must fill in and submit to the customs service an individual statement
in terms of the IMEI number of the mobile phone device.
The customs service officially notifies the operators of the mobile phones of IMEI
numbers, declared by the importers and the individuals, in accordance with the letters
“a”, “b” and “c” of this point. The form of statement of the IMEI numbers from the
importers and the individuals is specified by a guideline of the Minister of Finances.

                                       Article 26/1***
                                 Exempted import supplies
The following supplies are exempted from VAT:
        c) Final import of all goods by a taxable person when their supply under all
circumstances at national level is a supply exempted from the value added tax. This letter
is not applied for thh supply in import of periodics, magazines, printing s and books of
every kind.
        d) Import of goods imposed under transit regime.
        e) Import of goods declared to be under the regime of the temporary permit and
the active processing regime.
        f) Import of goods and services related to the implementation of research stages
and conduct of hydrocarbon operations, implemented by contractors or subcontractors
who work for these operations. The contractors and subcontractors are certified as such
by the National Agency of Natural Resources.
“Hydrocarbon Operations”, to the effect of this paragraph, has the same meaning as
ascribed in the law No.7746, dated 28.07.1993 “On hydrocarbons”.
dh) import of live highbred animals, donated by various donors.
e) Import of goods from NATO and its bodies in the framework of operations, based on
international agreements.
f) Import of military materials for the Armed Forces donated by NATO alliance countries
and partner countries.

                                      CHAPTER IV

                        TAXABLE VALUE AND TAX SCALE

                                          Article 27
                                        Taxable Value
1. The taxable value of the taxable supply is the total amount paid for that supply, unless
this law otherwise specifies.
2. The taxable value of the supply of goods in the article 18, point 2 or 3 is the total
payment which should have been payable in terms of that supply if the purpose of the
supplier is to take respective profit and similar supplies.

                                   Article 27/1****
                                 Minimum taxable value



                 Department of Foreign Affairs and Taxpayers
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Ky akt është përkthyer nga Ministria e Financave.

The minimum fiscal guiding price for the process of the building construction is
established by the Decision of the Council of Ministers following the consultation with
the Association of Albanian Builders.

                                     Article 27/2
                               Supply of processed gold
The taxable value of the processed gold supplied at national level does not include the
value of the gold used as a raw material. The manner of the calculation of the value of
gold used as a raw material is specified by virtue of a guideline of the Minister of
Finances.

                                          Article 28
                                   Obligations on suppliers
        1. The taxable value of supply includes fees, taxes and payable duties as a result
of the supply except payable VAT for this supply by virtue of this law.
        2. The person who effects taxable supplies is obliged to visibly post through
announcement, contract or advertisement if the price of goods or services to be supplied
or the price to be paid for the supply includes VAT or not, save the cases the Minister of
Finances is entitled to otherwise specify in the guideline.
        3. In case the taxable supply is effected without a separate amount and identified
as a VAT payment, its taxable value is the amount which together with the VAT payable
on that amount pursuant to this law, equals the payment effected to the supplier.
        4. For goods which incur losses during transit, storage and production, as
specified in special legal acts and bylaws, is not calculated and the VAT is not paid.

                                         Article 29
                                       Clarifications
        1. When there is an increase or decrease in the total payment effected for the
supply, then the taxable value of supplier is made clear.
        2. When the payment for a supply is reduced by a discount at the moment of the
supply, then the taxable value of supply is respectively reduced.
        3. When the payment for the supply is reduced by a discount for a lump sum, then
the taxable value of supply is respectively reduced.

                                     Article 30
                                        Tax scale
VAT is applied to the extent of 20 per cent , unless this law otherwise specifies.


                                      Article 31****
                             Export and international services
VAT is applicable to the extent of zero per cent in relation to:
a) goods exported from the territory of the Republic of Albania;
b) supplies and services effected out of the territory of the Republic of Albania by a
taxable person, the place of economic activity of which or in the case of the individual,
the ordinary place of residence of which is in Albania;

                  Department of Foreign Affairs and Taxpayers
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Ky akt është përkthyer nga Ministria e Financave.

**** c) Supplies of goods and services in relation to the international transport of goods
or passengers.
ç) Supplies of goods or services in relation to commercial or industrial activity at sea.

                                          Article 32
                                         Payable tax
VAT payable by a taxable person for a taxation period is the difference between:
a) the VAT applied for the taxation period over the taxable total value of all taxable
supplies effected during the period by this person, minus
b) each tax crediting allowed for this person for that period.

                                          Article 33
                                     Crediting of taxation
1. Crediting of taxation for a taxation period is:
a) the total of VAT applied in terms of:
(i) all taxable supplies effected for the taxable person during the taxation period from
other taxable persons;
(ii) all imports of goods effected by the taxable person during the taxation period when
these supplies or imports are effected for purposes of taxable supplies effected or to be
effected by the taxable person;
b) each crediting of taxation allowed pursuant to the article 34, unless this law otherwise
specifies.
2. Crediting of taxation is not allowed under no circumstances for expenses which are not
entirely solely for purposes of economic activity.
3. A taxable person is not entitled to request crediting of taxation pursuant to this article,
if he does not own a bill indicating the amount of the required crediting or to request
crediting of taxation pursuant to the article 34 if he does not own documents certifying
that the debt is a bad one.
4. The Minister of Finances establishes by virtue of a guideline the permit of the crediting
of taxation for a taxable person as regards a part of the VAT paid by him in terms of
taxable supplies and imports of goods effected by him partly for purposes of taxable
supplies effected or to be effected by him and partly for other purposes.
5. The Minister of Finances is entitled to specify in the guideline that the crediting of
taxation is not allowed in relation to any kind of taxable supply or import.

                                           Article 34
                                           Bad debts
        1. When a payment is not fully or partly received for a supply taxable by the
supplier and it is a bad debt, the crediting of taxation is allowed pursuant to this article.
        2. The amount of crediting of taxation is as much as the VAT applied in
conformity with the article 30 of this law, in relation to the supply which corresponds to
the uncashed amount of the bad debt.
        3. The crediting of taxation is allowed during each taxation period after the debt
becomes a bad debt and starts at least six months after the termination of the taxation
period for which the VAT was applicable in relation to the supply.



                  Department of Foreign Affairs and Taxpayers
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Ky akt është përkthyer nga Ministria e Financave.

        4. When the crediting is allowed for the bad debt and this debt is fully or partly
paid at a latter time, the cashed amount is treated as a clarification pursuant to the article
29 of this law.


                                       CHAPTER V

                        ADMINISTRATION AND PROCEDURE

                                        Article 35
                        Administration and procedures in general
       1. The Minister of Finances is responsible for the enforcement of this law.
       2. The tax and customs administration are the only bodies responsible for the
enforcement of this law. They file reports to the Minister of Finances.
       3. For the enforcement of this law, the Minister of Finances issues respective
guidelines.




                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

                                           Article 36**
                                               Bills
         1. The taxable person who effects the supply is obliged to issue for the person
who receives the supply, a bill in terms of this supply, unless this law otherwise specifies.
1/1. At the bottom of the bill, it is inserted the respective name, the last name, the
signature of the buyer, the respective name, the last name, the signature of the transporter
and the respective name, the last name, the signature and the seal of the vendor.
         2. For purposes of this law, the bill is drafted in the form stipulated by the
Minister of Finances and contains:
         a) the name, the address, the NIPT and the fiscal code of the person effecting the
supply;
         b) the name, the address and the NIPT along with the fiscal code for the buyer, a
taxable person for the VAT, the name, the address and the fiscal code for the buyer, a
taxable person of the small business and only the name and the address for buyers that are
other persons;
b/1) the name, the address and the NIPT of the transporter, the number plates of the
vehicle and the time of the supply;
         c) the date on which the bill is issued;
         d) the series number inserted by the printing house which has printed it;
         e) the ordinal number;
         f) the description of each supplied goods or service;
         g) the amount of goods or the size of the supplied services;
         h) the price per unit without VAT for any kind of supplied goods or services;
         i) the unpaid sum without VAT;
         j) the percentage of VAT payable to any kind of supplied goods or services;
         k) the amount of payable VAT;
         l) the payable amount with VAT;
         m) any other data requested from the Minister of Finances
3. When a clarification is made for the payment effected for a supply after a bill is issued
in that respect, the person who effects the supply, issues another bill or a crediting note in
the form requested by him in terms of this clarification.
4. The Minister of Finances is entitled to establish by virtue of a guideline that the retailer
meets the obligations of this article by issuing a bill or a crediting note ( including
vouchers) in the envisaged form and circumstances.
5. When a person who is not registered issues a bill in the form provided for in this law or
otherwise, implies that he applies VAT to a supply, he is subject to punishment.
6. When a person issues a bill as provided for in the paragraph 5, the tax bodies are
charged to cash the VAT indicated in that bill, together with each fine for the punishment
imposed pursuant to that paragraph.
7. The Director General of Taxation is entitled to allow the non-use of tax bills with
unprinted series number in cases the registered taxable person may show, upon the
request of the tax bodies that his system of registration is computerized and capable to
produce tax bills with series number for each taxable transaction and which has a
considerable number of end client users.
8. Repealed
9. The tax bill of the consumption of potable water according to the defined model.

                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.



                                         Article 37
                              Statements for taxation periods
1. Each taxable person is obliged:
         a) to make a statement pursuant to the article 32 of this law for each taxation
period not later than 14 days following the termination of the taxation period to which he
is related;
         b) to pay the VAT for that period on or prior to the mandatory date of statement.
2. The statement made in conformity with the point 1 is made in such a form and contains
such information as specified by the Minister of Finances.

                                         Article 38
                                     Taxation periods
1. The taxation period is the calendar month, unless this law otherwise specifies.
2. For a taxable person who is initially registered, the taxation period starts on the day
when the Certificate of Registration records that the registration enters into force and
terminates on the last day of that month.
3. For a taxable person to be deregistered, the taxation period starts on the first day of the
respective month and terminates on the day the person is deregistered.
4. The Minister of Finances is entitled to establish by virtue of a guideline that for any
category of taxable persons, the taxation period is longer or shorter than one month.

                                        Article 39
                                    Other statements
The tax bodies are entitled to oblige a taxable person to make other statements as
appendixes of statements for taxation periods in the form and time requested from them.

                                          Article 40
                                 Obligation to keep records
        1. Each taxable person is obliged to keep accounts including registers for all
supplies effected by him, all supplies effected to him and all imports of goods effected by
him as part of his economic activity in accordance with the law No 7661, dated 19.1.1993
“On accounting”.
        2. The records kept in conformity with the paragraph 1 include all bills issued for
the taxable person in relation to the taxable supplies effected to him.
        3. The Minister of Finances is entitled to provide for that the records kept
pursuant to the paragraph 1, are registered in computer as electronic data.
        4. The records kept in conformity with the paragraph 1 are kept for a period of 5
years.
        5. The tax bodies are entitled to oblige a taxable person, by notifying him:
        a) to present the records kept in conformity with the paragraph 1;
        b) and if the records are kept in the computer or as electronic data, to allow them
access to the computer where the records are kept and access to the computer or other
equipment to check the records kept as electronic data.

                                         Article 41

                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

                                      Tax assessments
1. Tax bodies are entitled to conduct the tax assessment of the VAT sum when:
a) a person does not make the statement from that time or in such form as stipulated in
this law;
b) a person requests that the VAT sum presented as payable in a statement should be
changed due to any errors or defaults;
c) they deem that the VAT sum presented as payable in a statement made by a taxable
person is lower than the sum which should have been reported as unpaid in that
statement;
ç) a person has been deregistered by reason of article 7 with effect from the date on
which he was registered;
d) they should cash a VAT sum by a person in relation to a bill pursuant to the article 36,
point 6;
dh) they have paid a sum for any person pursuant to the article 43 and for any reason the
person has no right over the ownership of that sum, or
e) they deem that for any reason, the VAT sum is payable by a person for the state and it
is not paid.
2. The tax bodies are entitled to conduct at any time a second tax assessment, changing or
adding the sum of VAT, payable on the basis of a first assessment if this second
assessment is required to ensure that the sum of payable VAT is in conformity with this
law.
3. The tax bodies notify the person in writing of the tax assessment or of the further tax
assessment, presenting the payable VAT sum and the date on which the tax assessment is
conducted.
4. The taxable person is obliged to pay the VAT presented as payable in the tax
assessment or in the further tax assessment, irrespective of the fact if he has requested the
review or has filed a complaint against the tax assessment.
5. The VAT payable according to the tax assessment conducted in conformity with this
article is payable within 30 days following the date on which the tax assessment is
conducted, irrespective of the fact if that person has requested a review or has lodged a
complaint against the tax assessment prior to that date.




                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

                                        Article 42****
                                            Reviews
1. **Each person, subject to a tax assessment pursuant to the article 41, if not agreeing
with the tax assessment, is entitled to request from the General Tax Directorate the
review of the tax assessment.
2. The person is entitled to make a request for the review of the tax assessment within 30
days from the day on which the tax assessment is conducted.
3. The request for review is made in writing and indicates the tax assessment or
assessments with which the person who makes the request does not agree, stating the
respective reasons thereupon.
4. **Upon the receipt of the request for review, the General Tax Directorate starts the
review for the tax assessment or assessments presented for review, save the cases
provided for in the point 5 of this article.
5. **The General Tax Directorate does not start the review for the tax assessment for any
person when this person has not made all statements which he is obliged to make
pursuant to this law, and has not paid the VAT payable by him.
6. When the tax assessment is reviewed pursuant to this article, the tax assessment may
be confirmed, changed or annulled.
7. The General Tax Directorate notifies in writing the person who requests the review for
the outcomes, indicating the review of the tax assessment and the date of the review.
8. When on the basis of a review, the tax assessment is changed or annulled; the tax
bodies give a further tax assessment pursuant to the article 41 to apply the review.

                                       Article 43*
                                    Right of complaint
        Each person who has requested a review pursuant to the article 42, if not agreeing
for any reason with the outcomes of the review, is entitled to lodge a complaint against
the tax assessment to the Commission of the Appeals of Taxes and then to the court.
        The complaint is lodged within 30 days from the date of the review and it should
set out the reasons why the person who lodges the complaint, does not agree with the tax
assessment and the review.
        In judging a complaint, the Commission of Appeals of Taxes is entitled to decide
that the tax assessment, against which the person has lodged a complaint, is confirmed,
changed or annulled.
        The tax bodies enforce each court decision pursuant to this article.

                                       Article 44
                                      Time limits
The tax bodies are not entitled to conduct a tax assessment 5 years after the tax period
with which it is related, has terminated, save the cases when this tax assessment is
conducted solely to apply a review or complaint against the tax assessment conducted
within this time limit.

                                       Article 45
                               Validity of tax assessment



                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

        The validity of the tax assessment is not consulted by any type of procedure,
except through the review and the complaint in conformity with this law.
        The validity of the review is not consulted by any type of procedure, except
through the complaint pursuant to this law.
        All tax assessments and the entire information included in the tax evaluation are
deemed to be definitely accurate, as long as these assessments are not changed or
annulled in accordance with the review of the complaint pursuant to this law.

                                          Article 46
                                         Information
The tax bodies are entitled to oblige:
a) the taxable person or the director, the clerk or the tax representative or the agent of that
person;
b) each person whom the tax bodies deem to be the taxable person or the director, the
clerk, the tax representative or the agent of that person;
c) each person who imports or exports goods or is related to the importation or the
exportation of those goods or the director, the clerk, the tax representative or the agent of
that person;
ç) any other person who is or may be related to the person cited in the paragraphs (a), (b)
and (c);
- to present to the tax bodies information concerning any supply of goods or services,
according to the request of the tax bodies and give any documents or electronic data
records they own in relation to the supply.

                                        Article 47**
                              Right of access and inspection
1. **The person authorized by the tax body is entitled to enter and request in any place
which includes lands, buildings, vehicles, ships etc, when he has reason to believe that
the goods or the documents used by the taxable person for purposes of the enforcement of
this law, are kept therein.
2. The person who requests to enter a land or building pursuant to this article, may not do
it, if:
        a) he does not present upon the request of the person in that land or building, a
written authorization of access;
        b) he does not comply with any other obligations specified by the Minister of
Finances.
3. The person who enters any lands or buildings pursuant to the point 1, inspects those
lands and buildings and each document and goods in that land or building.
4. The person who enters any lands or buildings pursuant to the point 1 may inspect and
receive copies of each account, registration or document.
5. The person who enters a building pursuant to the point 1, inspects and controls the
operations of each computer, the registration desk or other equipment in that building and
must receive the copies of each account, registration or other information in that
equipment.




                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

6. The Minister of Finances issues guidelines for the authorization of persons for the
envisagement in all cases of competences in writing and for the conditions under which
the competences are used by the authorized persons pursuant to this article.

                                        Article 48
                                      VAT payment
1. VAT payment is effected by the taxable person for the tax bodies or in other ways as
specified by the Minister of Finances in the guideline.
2. The taxable person accompanies each statement made by him in accordance with the
article 37 by:
a) the mandatory VAT payment;
b) or the document of the mandatory VAT payment from the mandatory date.

                                         Article 49*
                                          Interests
1. When the taxable person does not pay the full due sum of VAT pursuant to this law on
the date on which it is due, interests are paid over the unpaid VAT sum from the date on
which it has been due to be paid until the date on which it is paid.
2. Repealed
3. Interests payable pursuant to the paragraph 1 are necessarily made at the end of the
calendar year on which they are created.
4. The interests payable pursuant to this paragraph are equally mandatory and are drawn
as if they were VAT payable pursuant to this law.

                                          Article 50*
                                       Reimbursements
1. If the crediting of the taxation for a taxation period is higher than the VAT applied for
that period, the taxable person is entitled to bear the remained sum as taxation crediting
for the subsequent taxation period pursuant to the article 32.
2. A taxable person requests reimbursement of the surplus of the taxation crediting when:
         a) The taxable person has borne a sum of the taxation crediting for 3 consecutive
months, pursuant to the point 1 of this article.
         b) the required reimbursement exceeds the amount of 400 000 ALL.
3. For the cases when in the financial agreements ratified by the People’s Assembly or in
the agreements or grants approved by the Council of Ministers, it is envisaged the non-
use of foreign financial resources to pay taxes and duties, including or not the value
added tax, the paid value added tax is reimbursed to the foreign financers from the tax
administration within 45 days, according to the rules established by the Minister of
Finances.
         The exporters are entitled to request reimbursement when their surplus exceeds
the amount of 400.000 (four hundred thousand) ALL.
The tax bodies make the reimbursement of the crediting surplus of VAT for this category
of taxpayers within 30 days from the date of the presentation of the request.
         The Council of Ministers specifies the category of the exporters cited in the point
4 of this article.



                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

(Note of General Tax Directorate, Points 4 and 5 enter into force on 19.01.2001,)

                                      Article 51
                          Competences for obliging guarantee
Before making a reimbursement of the taxation crediting for a taxable person, the tax
bodies are entitled to oblige that person to present a guarantee for the future VAT
payment by him.

                                      Article 52
               Reimbursements as a consequence of review or complaint
When on the basis of a review or a complaint pursuant to this law, a tax assessment is
reduced or annulled, the tax bodies reimburse to the person against which the tax
assessment is conducted, the entire overpaid VAT payment, according to the deadlines
and rules specified in the law No 9160, dated 18.12.2003 “On tax procedures in the
Republic of Albania”.

                                          Article 53*
                                 Interests for reimbursement
a) When the tax bodies make a reimbursement of VAT for a person pursuant to the article
52, they pay interests for the disbursement sum according to the percentages stipulated in
the article 49, only when the reimbursements are made later than one year after the date
on which the person has paid the VAT and it is calculated from the end of the period of
one year until the reimbursement date.
b) When the tax bodies do not make the reimbursement of VAT for a person in
accordance with the article 50, within 30 days from the date of the submission of the
request in one of the forms stipulated in the letters “a”, “b” and “c”, of the point 3 of the
article 39, of the Law No. 8560, dated 22.12.1999, “On tax procedures in the Republic of
Albania”, amended, are obliged to pay the interests specified in the article 44 of the Law
« On tax procedures in the Republic of Albania », amended.

                                    Article 54****
                              Issuance of unpaid taxation
**** If the mandatory VAT pursuant to this law is not paid until the date on which it is
mandatory, the tax bodies are entitled to undertake actions to forcibly draw the
mandatory VAT together with the imposed interests or fines, pursuant to the article 45
and 46 of the law, “On Tax Procedures in the Republic of Albania”, amended.




                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.



                                           Article 55
                                     Tax representatives
1. When a person is a taxable person for purposes of this law but has not a place of
economic activity or in the case of an individual, an ordinary place of residence in
Albania, the Ministry of Finances is entitled to request him to nominate another person as
his tax representative.
2. A person is nominated as a tax representative only if he has a place of economic
activity or in the case of an individual the ordinary place of residence in Albania.
3. A person nominated as a tax representative is personally responsible pursuant to this
law to meet all obligations, including any fine or punishment for which his principal is
obliged and assumes all rights of his principal pursuant to this law.

                                       Article 56
                               Personal Representative
When a taxable person dies, becomes disabled, is subject to liquidation or dissolution,
any person carrying on economic activity is treated as a taxable person.

                                       Article 57****
                                        Punishments
Punishments are imposed for the following cases of violations:
        • Not requesting to be registered.
        • Inappropriate registration.
        • Lack of notification of changes.
        • Not requesting to be deregistered.
        • Non-issuance of the bill.
        • Issuance of bill not meeting obligations.
        • Issuance of bill which voluntarily or not contains erroneous information.
        • Incompliance with any provisions of the customs legislation as long as it is
applicable for the VAT
        • Non-marking of the respective price of sales.
        • Failure to make clarifications.
        • Declaring of goods or services to zero per cent, when they are not at such a
level.
        • Request for taxation crediting for which the person is not entitled.
        • Issuance of taxed bill by unregistered persons.
        • Non-making of statement within the due date
        • Inaccurate making of statement.
        • Making a false or erroneous statement.
        • Failure to pay taxes within the due date.
        • Failure to pay taxes following the tax assessment.
        • Failure to keep respective records.
        • Failure to submit records and documents upon request.
        • Failure to submit information as requested.
        • Prevention or non-provision of assistance or non-permission of entry and
inspection.

                 Department of Foreign Affairs and Taxpayers
                       Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

       • False or erroneous requirements for tax crediting and reimbursement.
       • Violations by tax representatives.
       • Non-registration pursuant to transitory provisions.

**** When the above cited violations do not constitute a criminal offence, they are
punishable to fine. The Minister of Finances establishes by virtue of a guideline the
detailed criteria for the imposition of the punishment to fine, according to these
violations, under specific conditions and circumstances.

                                       CHAPTER VI

                                      OTHER CASES

                                        Article 58
                                   Small business etc.
The Minister of Finances specifies in the guideline special schemes for the taxable
persons of small business or special business categories or for taxable persons who effect
supplies of goods or special category of goods, supplied to them by other persons, except
taxable persons.

                                      CHAPTER VII

                       TRANSITORY AND FINAL PROVISIONS

                                          Article 59
Registration during the transitory period
Each taxable person is registered pursuant to the article 5, with effect from the date of the
entry into force of this law and files an application for registration pursuant to the article
3 not later than one month prior to the date of the entry into force of VAT.
Each person is entitled to be registered pursuant to the article 4, with effect from the date
of the entry into force of the VAT, is entitled to file an application for registration in
accordance with the article 3 at any time after the beginning of the registration period.
The beginning of the registration period is established by the Minister of Finances.

                                          Article 60
                                       Entry into force
This law enters into force immediately. The application of VAT and the replacement of
the tax over the circulation starts in the fourth quarter of the year 1995. The Council of
Ministers specifies the date of the application of this tax. With the beginning of the VAT
application, the Law No 7676 dated 3.3.1993 “On tax over turnover” and any other
related provision is repealed.

SPEAKER OF PARLIAMENT
Jozefina TOPALLI (ÇOBA)

***Amended by the following laws:

                  Department of Foreign Affairs and Taxpayers
                        Sector of Services to Taxpayers
Ky akt është përkthyer nga Ministria e Financave.

Law No. 8126, dated 09.07.1996
Law No. 8130, dated 22.07.1996
Law No. 8149, dated 11.09.1996
Law No. 8070, dated 15.02.1997
Law No. 8186, dated 23.01.1997
Law No. 8201, dated 20.03.1997
Law No. 8240, dated 16.09.1997
Law No. 8445, dated 21.01.1999
Law No. 8505, dated 07.07.1999
Law No. 8714, dated 15.12.2000
Law No. 8779, dated 26.04.2001
Law No. 8845, dated 11.12.2001
Law No. 8963, dated 24.10.2002
Law No. 9162, dated 18.12.2003
Law No. 9332, dated 06.12.2004

Published in the Official Journal No. 103 dated 29 December 2004.
Law 9454, dated 21.12.2005
Published in the Official Journal No.105 dated January 2006
***Law No. 9597, dated 27.07.2006
Published in the Official Journal No.84 dated 09 August 2006.
*** Law No. 9674, dated 29.12.2006 “On Value Added Tax”, amended, published in the
Official Journal No. 151 dated 19.01.2007.
Law No. 9712 dated 16.04.2007, published in the Official Journal No. 54 dated
12.05.2007.
Law No. 9856, dated 26.12.2007, publishe on the official Journal No. 118 dated
18.02.2008.




               Department of Foreign Affairs and Taxpayers
                     Sector of Services to Taxpayers

				
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