# Albania VAT Guide for 2026: Rates, Registration & Compliance

Canonical: https://trykintsugi.com/sales-tax-guides/europe/albania
Published: September 22, 2026

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

- **SaaS:** Taxable
- **Digital Goods:** Taxable

## 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

## 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].

#### 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

- [1] [General Directorate of Taxes — Value Added Tax (rates, registration, filing, exemptions)](https://www.tatime.gov.al/eng/c/4/96/110/value-added-tax)

- [2] [General Directorate of Taxes — Tax procedures (filing, penalties, and appeals)](https://www.tatime.gov.al/eng/c/6/69/tax-procedures)

- [3] [General Directorate of Taxes — Official notice: VAT on electronically supplied services by non-residents (20%, tax representative)](https://www.tatime.gov.al/eng/d/8/45/0/695/official-notice-for-multinational-companies-providing-electronically-supplied-services-to-non-taxable-persons-located-in-the-territory-of-the-republic-of-albania)

- [4] [General Directorate of Taxes — Late-payment interest rates](https://www.tatime.gov.al/eng/c/8/129/187/interest-rates)

Verified July 2026 against Albania General Directorate of Taxes guidance.

#### Frequently asked questions

### 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 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.

### 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.

### 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.