Guide to Albania VAT Taxability and Rates

Understanding which products and services are subject to VAT in Albania is an important step in getting your compliance right. Here is what you need to know.

Standard VAT Rate

Albania applies a standard VAT rate of 20% on most taxable goods and services sold within the country.

What Kintsugi Currently Taxes in Albania

Kintsugi's tax engine supports VAT collection on the following product categories:

• B2B SaaS — Software sold to businesses

• B2C SaaS — Software sold to individual consumers

These are the two categories currently supported. Additional product categories are planned for future releases.

Digital Services and Non-Resident Sellers

If your business sells digital products or SaaS to Albanian customers and you meet the registration threshold, you are required to collect and remit VAT on those sales. Albania follows the destination principle for digital services, meaning VAT is due where the customer is located.

A Note on Taxability

VAT rules can be nuanced, and taxability may differ depending on your specific product, how it is sold, and who the buyer is. If you are unsure whether your products are taxable in Albania, consult a tax advisor or reach out to the Kintsugi team for guidance.

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