Tourism sector VAT reduced from 20% to 6%

Shortly before the start of the new tourist season, the Albanian government has decided to reduce the rate to 6 percent the Value of Added Tax for accommodation facilities in the tourism sector.

“The degree of VAT reduction, which applies to the accommodation services in accommodation facilities, according to the defined categories in the tourism legislation, is 6 percent. Conditions, criteria and procedures for the implementation of this paragraph shall be determined by the decision of the Council of Ministers,” states the adopted decision.

Currently VAT for tourism sector is 20% being considered among the highest in the region.

Tour operators are constantly looking to reduce VAT, since for both hotels and restaurants it is among the highest in the region, bringing higher taxes for operators in Albania than those of the region.

SCAN

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