Under the agreement, border controls will apply only to vehicles with foreign license plates, subject to simplified inspection procedures to avoid congestion at main crossing points such as Morinë and Vermicë.

The passport-free regime was reinstated after a one-month suspension in October for vehicle and traveller registration. Even during that period, the exemption remained in place on weekends and public holidays.

The bilateral deal, signed earlier this year, aims to ease traffic and facilitate travel between the two countries. It applies twice a year – from May 1 to September 30 and from November 1 to February 28 – covering a total of nine months annually.

/e.i/a.f/u.sh/

The revised scheme will replace the current VAT model, in place since 2018, which critics say has disadvantaged local producers by allowing refunds on imported agricultural products while excluding those purchased from domestic farmers.

Under the new system, VAT refunds will be issued as direct transfers to registered farmers. The government has allocated around 1.5 billion lekë annually for the program, approved as part of the government’s latest economic package passed by Parliament.

Currently, some 100,000 farmers are registered with tax identification numbers (NIPT) and are allowed to sell their products without issuing VAT invoices, using self-invoicing forms filled out by the buyer instead.

Until 2017, farmers received a 20% VAT refund through processing companies. However, the system underwent several changes from 2019 onwards. In 2019, VAT on purchases from farmers was reduced to 6%, while processed product sales remained taxed at 20%. By 2022, deductible VAT on farmer purchases was removed entirely, shifting government support to direct subsidies instead of tax refunds.

The newly announced VAT refund system aims to enhance the competitiveness of Albanian agricultural products and strengthen the market position of local farmers in the face of cheaper imports.

/j.p/u.sh/