LAW
No. 82/2022
FOR SOME ADDITIONS AND CHANGES IN LAW NO. 92/2014, “ON VALUE ADDED TAX IN THE REPUBLIC OF ALBANIA”, AMENDED.
In support of articles 78, 83, point 1, and 155 of the Constitution, with the proposal of the Council of Ministers,
THE ASSEMBLY OF THE REPUBLIC OF ALBANIA
DECIDED:
In the law no. 92/2014 “For value added tax in the Republic of Albania”, changed, are made the following additions and changes:
Article 1
After the letter “p” of Article 51, “Exclusion of some activities of general interest”, the letter “q” is added with the following contents:
“q) Supply of items included in heading 4401 of the Combined Nomenclature of Goods, with effect until December 31, 2023.”.
Article 2
After point 44 of article 5, “Special exceptions in import”, points 45 and 46 are added with the following content:
“45. Goods destined for the implementation of financing projects with funds received on the basis of a donation/grant related to the Council of Ministers of the Republic of Albania/Republic of Albania and foreign donors, if it is unable to create the funds received will not be used to pay taxes.
The conditions and procedures for the actions of this point are determined by the instructions of the Minister of Finance.
- Import of items included in heading 4401 of the Combined Nomenclature of Goods, with effect until December 31, 2023.”.
Article 3
After the letter “b” of point 1 of article 60, “Supplies similar to exports”, the letter “c” is added with the following contents:
“c) The supply of goods/services, intended for the realization of financing projects with funds received on the basis of a donation/grant agreement are connected between the Council of Ministers of the Republic of Albania/Republic of Albania and foreign donors, if in the agreement stipulates that the funds received will not be used to pay taxes.”.
Article 4
At the end of point 2 of article 77, “VAT refund”, the words “with the exception of the cases provided for in point 45 of article 56 and letter “c” of point 1 of article 60 of this law” are added
Article 5
After article 155, “Keeping accounts”, section 6, “Special regime for the Albanian Energy Exchange”, including articles 155/1, 155/2 and 155/3, is added with this content:
“SECTION 6
SPECIAL REGIME FOR THE ALBANIAN ENERGY EXCHANGE
Article 155/1
Definitions
For the purposes of this section, the following terms shall mean:
- a) “Albanian Electricity Exchange” is the structure responsible for the management and administration of the market organized between the market platform for the sale and purchase of electricity, on the basis of the day in advance and/or within the same day, as well as for all related activities, including the activity of financial compensation (clearing) between market participants, in accordance with the market rules and model.
- b) “Electricity market” is a system where effective sales and purchases are carried out, including electricity derivatives, through requests and offers, presented in long-term and short-term periods.
- c) “Electricity derivative” is a financial instrument that can be used by electricity market participants as a means of security against possible fluctuations in the price of electricity in the market.
- d) “Participant of the electricity market” is a legal entity, registered as a participant of the electricity market, which includes producers, traders, suppliers, customers, Transmission System Operator, Distribution System Operator, closed systems distribution and market operator. The Transmission System Operator and the Distribution System Operator are participants in the electricity market only for the purpose of providing the electricity needed to cover network losses, balancing and auxiliary services.
Article 155/2
Tax exemption
Importation and domestic supply of electricity intended for sale through the Albanian Electricity Exchange are exempt from value added tax.
Article 155/3
Payment of VAT
- In the case of the supply of electricity traded through the Albanian Electric Energy Exchange, VAT becomes payable at the moment when the results of the day’s auctions are announced in advance or within the same day or at the moment when the orders are matched in the case of continuous market within the same day.
- Until December 31, 2026, VAT is payable by the taxable person for whom electricity is supplied by the Albanian Electricity Exchange in accordance with the provisions of this section and the provisions of Article 21. For the purpose of calculating VAT – the buyer of electricity from the Albanian Electricity Exchange carries out the self-charge (reverse-charge) of VAT in the capacity of the person responsible for the payment of VAT.
The procedures for the implementation of this point and the beginning of the application of this special scheme are determined by the decision of the Council of Ministers.”
Article 6
This law enters into force 15 days after publication in the Official Gazette and extends its effects from January 1, 2023.
Approved on 24.11.2022.
Revealed by decree no. 13881, dated 19.12.2022 of the President of the Republic of Albania, Bajram Begaj.