On July 23 2015 Parliament passed the Value Added Tax (VAT) Law (90/2015) and the Tax Procedures Law (91/2015). Both laws were published in Official Gazette 144 of August 1 2015.

VAT Law

The amendments provide that the tax administration must reimburse VAT within 60 days of a taxpayer filing a request and within 30 days of an exporter filing a request, in accordance with the Tax Procedures Law.

Before processing a request to reimburse VAT to a taxable person, the tax administration can require that person to prove that the aim of the economic activity is to carry out taxable supplies which enable a VAT deduction.

Tax Procedures Law

The amendments establish the Directorate of VAT Reimbursement within the General Tax Directorate; taxpayers have the right to file requests for VAT reimbursement with that directorate. The new directorate, in collaboration with the regional tax directorates, will verify requests within 60 days of filing (30 days for exporters).

If necessary, the tax authorities have the right to audit the taxpayer based on the risk analysis.

Once approved, the payment of the VAT reimbursable amount is made within five days, through the treasury system. If this term is not respected, the taxpayer shall be entitled to withhold other tax liabilities up to the total VAT-reimbursable amount.

For further information please contact Ilir Limaj at Boga & Associates by telephone (+355 4225 1050) or email (ilimaj@bogalaw.com). The Boga & Associates website can be accessed at www.bogalaw.com.

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