TIRANA, Dec 10 /ATA/ During a meeting with the Director General of Taxes Administration, Ilir Binaj, the American Chamber of Commerce (AmCham) raised concerns about several procedures that, in its view, impose an unnecessary financial burden on investors, especially in relation to VAT refunds.
Alketa Uruçi, Chair of the Tax and Customs Committee at AmCham, illustrated the case by referring to the challenges encountered by businesses undertaking investments in tourism, industry, and other sectors.
She noted that during the construction phase, investors accrue VAT credits, yet frequently face impediments to their reimbursement, thereby compelling them to shoulder a financing cost equivalent to 20 per cent of the investment’s value.
“The tax administration often finds ways to avoid reimbursing VAT credits, thereby placing a significant burden on investments. Another issue concerns sales below cost. Although permitted by law in certain sectors, the interpretation by the tax administration has varied, resulting in penalties for businesses, particularly those operating in the electricity market,” Uruçi stated.
Responding to these concerns, the Director General of Taxes, Ilir Binaj, highlighted that substantial improvements have been made in VAT reimbursement procedures in recent years, with the overwhelming majority of claims now handled without further verification.
“Today, we process approximately 1,700 reimbursement claims per year. The majority, around 80%, are approved immediately, while only a small number undergo scrutiny, usually related to investments. To my knowledge, we have not denied reimbursement for investments when the documentation has been complete and in order,” Binaj stated.
Ilir Binaj highlighted that, despite differing roles and priorities, the shared goal of the Tax Administration and businesses is a strong and prosperous economy. He added that, given the often challenging relationship between the two, efforts are focused on fostering effective communication.
At the request of AmCham representatives, Binaj also outlined how the ‘Fiscal Peace’ initiative, set to come into effect on 1 January 2026, will be implemented. He explained that its objective is to provide businesses with the opportunity to forego audits, provided they are prepared to meet the obligations stipulated in the state budget. ‘Fiscal Peace’ was a campaign commitment, and the government is now implementing it as promised. He emphasised that the initiative is intended to support businesses, which have long sought to avoid tax administration inspections due to the associated time and costs. It is designed for those enterprises willing to comply with their fiscal obligations while facilitating the collection of state revenues.
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