Nejla Peka
Legal expert, Regulatory and Compliance Department Prime Minister’s Office, Albania​​

2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty –  Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0


The tourism sector is one of the main contributors to the Albanian economy, having a growing positive trend. The development of tourism in our country is foreseen as part of sustainable development, with great growth potential, generating economic development and guaranteeing employment. Therefore, for this purpose, promotion of Albania as a tourist destination and attracting a large number of visitors, both domestic and foreign, requires the support of a sustainable, environmentally friendly and expansive tourism development throughout the year.
In order to create the most competitive conditions in the region and to promote the presence in the Albanian market of internationally renowned names, it was necessary to intervene in the Law on Value Added Tax, providing that within this category of accommodation[1] structures, services are provided with a reduced rate of value added tax[2].
Even the Balkan region’s neighboring countries – such as Macedonia, Montenegro, Serbia, etc., foresee convenience in the value added tax for the tourism sector.
Starting from the great potentials our country offers in the field of tourism, from the geographic, climatic point of view, it is considered necessary to promote an increasingly elite tourism, offering high standards in accommodation facilities of “Hotel with five stars, special status “. This will enable the absorption of large investments in our country, as well as the presence of well-known brands in the field of hotel trade.

[1] According to the definition provided in Article 4 of Law No.93 / 2015, “On Tourism”, the accommodation structure is “… the structure made available to tourists, domestic or foreign, individuals or groups organized for a period of time indefinite, but not more than one year, accommodation services (sleeping, food, beverages and other services), in accordance with the standards set by its classification and categorization … “. Classification and categorization of accommodation structures is a compulsory condition for the exercise of accommodation activity. This, in addition to enhancing fair competition and the quality of services, is also a measure for consumer protection. Accommodation facilities will not advertise any classification levels, according to their wish, for which they do not meet any standards. For example, a tourist in a hotel classified with “3 Stars” will be offered services of that standard, because this structure has undergone a formal classification process, after which it has resulted to meet the standards of that level.

[2] Law No.92 / 2014 “On value added tax in the Republic of Albania” has aimed at approximating with the European Union Directive “On the Common System of Value Added Taxes” in Europe (DE 2006/112). In this Directive, in Annex 3, it defines what the supplies of goods are and services on which reduced VAT rates may apply where are listed and the supplies of many services and other goods over which the reduced VAT rate can be applied, but always not higher than 5%. Even in Chapter VII of the Law (Article 49, in accordance with Article 98 of the Directive) it is stipulated that in addition to the standard scale, the reduced rate of VAT may be applied. Pursuant to this provision, already with the entry into force of Law No.71/2017 “For an addition to Law No. 92/2014” On Value Added Tax “, amended, a reduced rate of 6% applies for the supply of accommodation service in accommodation structures, as defined in the legislation in the field of tourism.

Key words

tourism, law, the value added tax, priority sector, government, fiscal facilities, direct investment, tax legislation, etc.


1. Constitution of the Republic of Albania, approved by law no.8417, dated 21.10.1998
2. Law No.92 / 2014, “On Value Added Tax”, as amended
3. Law No.71 / 2017, “For an addition to the law no.92 / 2014″ On value added tax in the Republic of Albania”
4. Law No.107 / 2017, “On Amendments and Amendments to Law No.92 / 2014,” On Value Added Tax “”, as amended
5. Law No.8438, dated 28.12.1998, “On Income Tax”, as amended
6. Law No.93 / 2015, “On Tourism”
7. Peka N. “Summary of Tax and Customs Legislation in the Republic of Albania”, publishing house “albpaper“, Tirana 2015, ISBN: 978-9928-05-206-3

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