What is the VAT rate in Albania in 2026?

Albania's standard VAT rate is 20%. Reduced rates of 6% and 10% apply to items such as accommodation, books, and agricultural inputs.

Do foreign digital businesses need to register for VAT in Albania?

Yes. Providers of electronically supplied services to Albanian consumers have no threshold and must register from the first sale through a local tax representative.

Is SaaS taxable in Albania?

Yes. SaaS and other electronically supplied services are taxed at the 20% standard rate, with B2B sales reverse-charged to the Albanian customer.

What are the penalties for late VAT in Albania?

Failure to register costs ALL 25,000, a late return ALL 10,000 or ALL 5,000, and late payment accrues 0.06% daily interest.

Albania VAT Guide for 2026: Rates, Registration & Compliance

Q: What is the VAT registration threshold in Albania?

Albanian-established businesses register once annual turnover exceeds ALL 10,000,000, about EUR 109,000. Foreign digital providers have no threshold.

Q: How often are Albanian VAT returns filed?

Monthly. The sales and purchase ledgers are due by the 10th of the following month and the return and payment by the 14th.

Albania's standard VAT is 20%, with a reduced 6% band. This guide covers registration, taxable scope, and filing obligations.

Last updated22 September 2026

Key Takeaways

Albania applies a standard VAT (TVSH) rate of 20% to most goods and services, including SaaS and digital products, with reduced and zero rates for specific categories. As a non-EU country, the EU's EUR 10,000 distance-selling threshold does not apply — a resident business registers once annual turnover exceeds ALL 10,000,000 (about EUR 109,000), and non-resident digital-service suppliers register separately. Hospital and medical care, education, and welfare-linked supplies are exempt; exports are zero-rated.

Taxability Snapshot

SaaS

Taxable

Digital Goods

Taxable

Sales Tax Rates

Albania applies a standard VAT (TVSH) rate of 20% to most goods and services, including SaaS and digital products sold to consumers [1][3]. Reduced and zero rates apply to specific categories:

Rate	Applies to
20% (standard)	most goods and services, SaaS, and digital services
6% (reduced)	accommodation, agritourism, books, licensed electric public transport
10% (reduced)	agricultural inputs such as fertilisers, pesticides and seeds
0% (zero)	exports and international transport

Electronically supplied services to Albanian consumers are taxed at 20%, and foreign B2C digital providers must register from the first sale through a local tax representative [3].

Albania VAT Calculator

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Albania · TVSH

Standard rate 20%Most goods and services.Accommodation 6%Hotel bed service with included breakfast, plus certified agritourism lodging and restaurant services.Books and media ads 6%Books of any kind and advertising services supplied by audiovisual media.Agricultural inputs 10%Chemical fertilizers, pesticides, seeds and seedlings.

Rates as of August 2026. Source: Albania: VAT Law No. 92/2014 (opens in a new tab); DPT: Instruction No. 5/2019 VAT rates (opens in a new tab); DPT: Value added tax (opens in a new tab).

Albania · Standard rate

20%

TVSH rate

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This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.

Registration & nexus threshold

Albania is outside the EU, so the EU One Stop Shop and the EUR 10,000 threshold do not apply. A resident business must register for VAT once annual turnover exceeds ALL 10,000,000 (about EUR 109,000); certain professions and hospitality businesses register regardless of turnover [1]. A non-resident that is liable for Albanian VAT must register through an Albanian tax representative [1]. Registration steps are in the How to Register section.

Filing frequency & deadlines

Albanian VAT is reported monthly. The sales and purchase ledgers are due by the 10th of the following month, and the VAT return and payment by the 14th [2].

Exemptions

Exempt supplies include hospital and medical care, education, public postal services, human organs, blood and milk, and welfare-linked supplies [1]. Exports and international transport are zero-rated [1].

Penalties

Failure to register carries a fine of ALL 25,000. A late return costs ALL 10,000 for profit-tax registrants or ALL 5,000 for others, and late payment accrues interest of 0.06% per day, capped at 365 days [4].

Sources

Verified July 2026 against Albania General Directorate of Taxes guidance.

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